The oOh! Media Ltd (ASX: OML) share price is worth watching today after the group's CEO and Managing Director announced his intention to step down. oOh! Media shares have already plummeted 5.56% this morning and are trading for $3.40 at the time of writing.
What is moving the oOh!media share price?
oOh! CEO and Managing Director Brendon Cook has announced his intention to step down from the role and from the Board in 2020.
Mr Cook will remain in his current roles until the completion of a global executive search. The oOh! Media share price will be one to watch given Mr. Cook is the founder of the advertising group.
oOh! Chairman, Tony Faure, paid tribute to the outgoing executive in today's statement. He cited Mr. Cook's expertise and profile within the industry as being key to the group's ongoing success.
The Aussie group was founded in 1989 and has steadily expanded to build a diversified, data-centric and scalable business model. oOh! Media shares have struggled to climb higher in the last 12 months but rebounded by 44% in the last 3 months, prior to today's losses.
Mr. Cook will continue in a strategic consulting role with the company going forward.
What else did the advertising group announce today?
oOh! Media shares are also on watch after the company confirmed its upgraded FY19 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) earnings guidance.
The group expects to see underlying EBITDA to be at the lower end of its $138 million to $143 million range. Those numbers are excluding integration costs and the impact of AASB 16 accounting standard changes.
oOh! Media shares surged higher after the 3 December upgrade to its earnings guidance. The outdoor advertising group had previously expected underlying EBITDA to be between $125 million and $135 million.
oOh! will report its FY19 results to the market on Monday 24 February.
Why have the group's shares struggled recently?
Despite the 44% rebound since mid-October, oOh! Media shares have been under pressure for several years.
Intensifying competition and consolidation in the industry has been a broader theme presenting headwinds for the company's share price.
The group's shares were hammered in August 2019 after downgrading its half-year results on the back of softer advertising in a declining media market.
