oOh!Media share price crashes 30% following ‘particularly soft’ month

Sad investor watching the financial stock market crash on his laptop computer.Sad investor watching the financial stock market crash on his laptop computer.

It’s been a rather horrific day for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares so far this Wednesday.

It seems investors are not taking kindly to the unexpected interest rate rise that we saw yesterday from the Reserve Bank of Australia (RBA). At the present time, the All Ords Index has lost a meaty 1.04%, putting it down to around 7,380 points.

But one ASX All Ords share is doing far worse than that. So let’s talk about the Ooh!Media Ltd (ASX: OML) share price.

Ooh!Media shares are having a shocker so far this morning. This All Ords media and advertising company closed at $1.63 a share yesterday afternoon.

But this morning, the Ooh!Media share price opened at just $1.08 a share, before getting down to the $1.06 we are seeing at present. That’s a whopping 33% slide on yesterday’s close:

So what on earth has prompted this ASX All Ords share to shed a third of its value in just a few hours?

What has caused this ASX share to crater 30%?

Well, it appears the culprit is an investor presentation the company has just released, made at the Macquarie Australia Conference. This presentation included a trading update for Ooh!Media!, which contained some sobering numbers. 

It wasn’t all bad news, with the media company reporting that first-quarter revenues grew by 3% over the corresponding period in 2022. Ooh!Media’s Road and Fly divisions also recorded year-on-year growth rates of 7% and 88% respectively.

But the company revealed that, overall, it had experienced a “softening media market at the end of Q1 and into Q2 due to a decline in the broader macroeconomic environment in Australia and New Zealand”.

Ooh!Media stated that media revenue over April was “particularly soft, pacing at -10 vs pcp [the prior corresponding period]”. Street revenue is another sore point with the company reporting that it “continues to be impacted by the launch of City of Sydney”.

Saying that, Ooh!Media also said that it is seeing a recovery in the May and June numbers, with the quarter ending 30 June 2023 “currently slightly ahead vs the pcp”.

But it’s the negative news that investors seem to be focusing on today.

Ooh!Media share price snapshot

Up until today, Ooh!Media was having a top year, having gained more than 32% year to date. But as it stands at the moment, the company has erased its entire 2023 gains. It is also now down 18.2% over the past 12 months.

At the current Ooh!Media share price, this All Ords media company has a market capitalisation of $603 million, with a dividend yield of 4.23%.

The post oOh!Media share price crashes 30% following ‘particularly soft’ month appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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