The oOh!Media Ltd (ASX: OML) share price surged 24% today after announcing a trading update for its FY19 result.
The advertising business announced that it has upgraded its FY19 earnings guidance for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be between $138 million to $143 million. This excludes integration costs and the impact from the change in accounting standards to AASB16.
Around four months ago the company issued guidance of $125 million to $135 million.
The company said its advertising bookings declined in the third quarter compared to the prior year's third quarter, but improved bookings for September and the fourth quarter have resulted in an upgrade.
Growth in operational expenditure FY19 is still expected to be within the previous forecast rate of 5% to 7%. Capex for FY19 is expected to be in the mid to lower end of the $55 million to $70 million range.
oOh! Media reconfirmed that the integration of Commute remains on track with an expected run-rate of $16 million in cost synergies.
The company continues to target a leverage ratio (net debt divided by underlying EBITDA) will be below or near two times in 2020.
