Airtasker enters a $6m media partnership with outdoor media company oOh!media to build brand awareness
Airtasker to receive $6m in oOh!media inventory in exchange for a 2-year $5m convertible note
oOh!media has more than 35,000 sites around Australia including billboards, street furniture, airports, office towers and retail centres
Special Report: Airtasker has inked a $6m media partnership with leading Australian outdoor media company oOh!media to build brand awareness at its more than 35,000 sites around Australia.
Online marketplace for local services Airtasker (ASX:ART) has formed a partnership with oOh!media (ASX:OML), which it says will enable it to scale in a capital efficient way and substantially raise its profile.
Under the deal ART will receive $6m in oOh!media inventory in exchange for a 2-year $5m convertible note with a 5.8% coupon rate, enabling it to advertise on oOh!media’s sites.
At maturity, ART has the option to convert the outstanding note and coupon into ordinary shares at a 10% discount to its 30-trading day volume-weighted average share price or repay the outstanding note and coupon in cash.
Access to 35,000 sites Australia-wide
Founded in 2012 ART provides an online marketplace where users can outsource everyday tasks to other community members, who then bid to complete the task.
ART believes the partnership provides an opportunity to raise its brand awareness and scale in a capital efficient way through access to OML’s more than 35,000 sites around Australia including billboards, street furniture, airports, office towers and retail centres.
CEO Tim Fung says the company is excited to be partnering with OML and building on the momentum of its media partnership strategy.
“We believe outdoor media is incredibly impactful because of its unmissable nature in a media landscape which is becoming increasingly crowded,” he says.
“Outdoor media presents exciting innovation opportunities with new digital formats and contextually relevant locations enabling ART to reach customers at the right time and place for when they need a task done, like offering furniture assembly or tech installation services in key retail locations.”
“We’ve already seen some incredible results with our $6.7m Channel 4 media partnership in the UK delivering 49% growth in posted tasks in the third quarter of FY24, after launching a little over six months ago, so we’re super excited to be building on that momentum with oOh!media in Australia.”
ART has a five-year deal with Channel 4, providing the company with advertising airtime to access its 47 million viewers – 78 per cent of the British populace.
In return, Channel 4 gets a 25% stake in the Airtasker UK subsidiary (not the listed Airtasker).
OML’s chief strategy and transformation officer Andrew Every says the company is thrilled to be partnering with ART.
“This collaboration allows Airtasker to leverage the strength of our unrivalled network and sophisticated data techniques to support its mission of driving growth in their trusted community platform,” he says.
On track for FY24 positive cashflow
After another strong result in Q3 FY24, ART is confident of delivering full year FY24 positive free cash flow.
In Q3 ART reported positive free cash flow of $2.5m and $19.7m in cash and term deposits on balance sheet with zero debt.
The company says the latest result was achieved through growing marketplace revenue by 11.5% to $10.1m and delivering solid group revenue of $12.2m whilst at the same time improving operating efficiency and reducing total operating expenditure by 6.4% on pcp.
Furthermore ART’s biggest shareholder and one of its first investors, venture capital firm Exto Partners, remains bullish on the company. Exto says its future looks promising as it expands to key international markets.
This article was developed in collaboration with Airtasker, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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