Digital-out-of-home solutions are crucial to many brands who want to get visibility beyond the internet and social media. That’s where media company Motio (ASX: MXO) comes in.
In the week of May 6, 2024, the Company saw its largest forward media booking week since Motio’s inception, providing confidence as it enters FY25. Motio remains on target for its financial year revenue goal of $7.7 million to $8.2 million.
After several years of material growth investment, FY25 will be a year of consolidation with a focus on optimising top and bottom-line results. Motio has reached a good quality position in network size. While it continues to consider organic and strategic network growth opportunities, its focus will be on optimising capacity for profitability and taking advantage of the Company’s maturation of operating capabilities.
Motio is an audience experience and digital place-based media company. The Company develops engaging content and utility communication for brands, customers and commercial partners across its digital marketing environments, be it digital screens in cafes or sports arenas.
Out-of-Home (OOH) makes up about 10.5% of all its agency-based revenue, while digital revenue makes up 73.9% of total OOH. Hospitality is also building momentum.
In the second half of FY24, its focus is on revenue growth of between 10% and 15% YOY, targeting $8.8 million to $9.2 million. Its FY25 Cash EBITDA target (after office rent expense) is to exceed $1 million.
Motio’s digital display networks are currently optimised for these targets. The team will continue to selectively deploy capital in areas of revenue opportunity and is focused on increasing advertiser occupancy across its existing inventory.
At the same time, Motio is part of the updated OOH audience measurement system, MOVE. The team will be taking advantage of the increased profile of Motio’s inclusion in the MOVE system and the visibility it provides to agencies and programmatic platforms to increase advertiser occupancy.
Motio’s subsidiary sports software platform Spawtz, acquired in 2022, has been important in Motio’s revenue growth in the indoor sporting sector. The Spawtz team is focused on acquiring new clients to grow its SaaS revenue and capitalise on the maturing social sports market in Australia, New Zealand and the UK. The team has some important product developments on the roadmap this year that will continue to enhance and grow the user base over the next 12 months.
In another win, on May 9, the Outdoor Media Association (OMA) announced the appointment of two new Board members, including Motio CEO Adam Cadwallader. The OMA is the peak industry body that represents companies that display advertisements, own signs, and provide services to the industry.
In the first half results, Cadwallader recognised the falling share price, noting that “it’s hard not to take it personally”. However, as its revenue grows and its business divisions pick up steam, the Company is forecasting a positive turn of events.
Alinda is a Business Reporter for The Sentiment
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1 Comment
Shraddha13
Thank you for sharing! To explore further
Replyhttps://www.360iresearch.com/library/intelligence/digital-ooh