Why the oOh!Media (ASX:OML) share price has dropped 18% in a month

Lockdowns have taken their toll on outdoor advertising.

| More on:
sad, unhappy outdoor advertising billboard, abandoned advertising billboards

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The oOh!Media Ltd (ASX: OML) share price is tumbling as the effects of the pandemic on its business are becoming increasingly apparent.

Shares in oOh!Media closed today's trade at $1.51 – 1.95% lower than Friday's close.

The oOh!Media share price has also fallen 18.55% in just 30 days.

The significant fall has occurred despite the out-of-home advertising company not releasing any price-sensitive news since May.

Let's take a look at what might be driving the oOh!Media share price down lately.

COVID-19 taking its toll

As most would assume, as people stay at home while lockdowns rage, less money is put into outdoor advertising. And that's exactly what's happened to oOh!Media.

It reported a 34% drop in revenue in its results for the 2020 calendar year. The oOh!Media share price also fell 46% over 2020.

PwC's Australian Entertainment. & Media Outlook 2021- 2025 found the media and marketing landscape has shifted considerably since the beginning of the pandemic, with out-of-home advertising one of the hardest-hit segments.

However, it reports it's starting to see "green shoots" from the segment, driven by demand for roadside billboards.

Unfortunately, over the last month, Australia has experienced the greatest number of people in lockdown since early 2020.  

Since this time last month, areas of Queensland, Perth, Western Australia's Peel region, Darwin, and Alice Springs have had lockdowns imposed and lifted again.

Meanwhile, Sydney has been enduring a 3 week 'soft' lockdown and has another 11 days of hard lockdown to get through in an attempt to shake the COVID-19 Delta strain.

Similarly, Victoria entered what was a 5-day lockdown last Thursday. Today, it was extended for an indefinite period.

Additionally, oOh!Media has reportedly decided to sell Junkee Media by the end of the year. The decision may be another weight on the oOh!Media share price lately.

It seems it might get tougher for the oOh!Media share price, Sydney, and Victoria before it gets better.

oOh!Media share price snapshot

The company's poor performance over the past month has pushed the oOh!Media share price into the ASX red.

It's currently 8.7% lower than it was at the start of 2021. However, it has gained 81.4% since this time last year.

The company has a market capitalisation of around $906 million, with approximately 598 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

Happy couple doing grocery shopping together.
Consumer Staples & Discretionary Shares

What is Bell Potter saying about the Woolworths share price?

Is it recommending Woolies as a buy?

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Two brokers analysing stocks.
Broker Notes

Don't miss these changes to broker ratings on ASX shares

The verdicts are in.

Read more »

a man stands with his arms folded in front of banks of unused poker machines in a darkened gaming room.
Consumer Staples & Discretionary Shares

Up 59% in 2024, why this ASX 200 stock is making noise today

Big money for this company's free offering.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Consumer Staples & Discretionary Shares

Why today is a big day for Coles shares

And not because of any outsized share price moves.

Read more »

A child pulls a very sad crying face sitting in the child seat of a supermarket trolley in a supermarket aisle lined with grocery items.
Consumer Staples & Discretionary Shares

Why did the Woolworths share price just hit a new 4-year low?

Pressures continue for the supermarket giant.

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just hit an all-time low following a profit warning

Higher costs and flat sales are weighing on this blue-chip stock.

Read more »

Family shopping for groceries
Consumer Staples & Discretionary Shares

This expert says Coles shares are a discounted bargain buy right now

The supermarket business is worth putting in the stock trolley to buy.

Read more »