AP NEWS

Clear Channel Outdoor Holdings, Inc. Reports Results for 2018 Second Quarter

July 31, 2018

SAN ANTONIO--(BUSINESS WIRE)--Jul 31, 2018--Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today reported financial results for the second quarter ended June 30, 2018.

“We continue to make great strides in our digital transformation using innovative technology to deliver flexible and creative solutions that connect advertisers to customers,” said Bob Pittman, Executive Chairman and Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “Even as we continue to win contracts that expand our digital offerings, we remain focused on developing programmatic, data analytics, and attribution capabilities that add value to our global network.”

“We are pleased with the success of our ongoing strategic initiatives and the growth in consolidated revenue, operating income and OIBDAN this quarter,” said Rich Bressler, Chief Financial Officer of Clear Channel Outdoor Holdings, Inc. “We remain committed to financial discipline as we invest to grow our businesses.”

Key Financial Highlights

The Company’s key financial highlights for the second quarter of 2018 include:

Consolidated revenue increased 5.9%. Consolidated revenue increased 3.5%, after adjusting for a $22.5 million impact from movements in foreign exchange rates and the $6.4 million impact of the sale of our business in Canada. Americas revenues decreased $0.3 million, or 0.1%. Revenues increased $6.1 million, or 2.1%, after adjusting for the $6.4 million impact from the sale of our business in Canada.International revenues increased $39.9 million, or 10.7%. Revenues increased $17.4 million, or 4.7%, after adjusting for a $22.5 million impact from movements in foreign exchange rates. Operating income increased 7.0% to $94.0 million primarily resulting from revenue growth in our International business. OIBDAN increased 10.7%. OIBDAN increased 8.7%, excluding the impact from movements in foreign exchange rates and the impact of the sale of our business in Canada.

Key Non-Financial Highlights

The Company’s recent key non-financial highlights include:

Expanding digital offerings globally:

Installing 14 new digital billboards in the U.S. for a total of 1,242 and 437 new digital displays in our International markets for a total of more than 14,000. Launching Clear Channel Sweden’s largest digital billboard in Stockholm. Located at Medborgarplatsen, which is one of the country’s most important advertising sites.

Winning new contracts:

Announcing the five-year contract renewal with Broward County’s Fort Lauderdale Hollywood International Airport to provide a new state-of-the-art digital advertising network. These innovative advertising solutions will enable global and local brands to reach over 32 million passengers annually. Extending the contract with Cleveland Hopkins International Airport to deliver innovative brand advertising solutions for the next 10 years. This contract renewal prioritized customized, advanced advertising displays that create an attractive, visually appealing environment for travelers. Signing the contract in Albuquerque to broadcast emergency alerts across its digital billboard network, which includes 44 digital billboards that reach more than 98% of adults weekly across the city. Renewing the contract in Barcelona to continue managing the street furniture network of digital and traditional displays until 2020. When combined with its network in Madrid, this premium national network consists of 2,676 advertising sites that give brands 43% coverage of Spanish population age 14-75 in main urban areas. Partnering with Keolis to strengthen its presence in Paris by providing brands with the opportunity to advertise on the Bus Direct service, which is a transportation link from the heart of the city to Charles de Gaulle and Orly airports, as well as Gare Montparnasse and Gare de Lyon train stations. Completing the contract with DADES to establish a digital out-of-home network in 10 major shopping centers across Denmark. By the end of 2018, CCOH expects to install more than 100 digital screens enabling advertisers to target shoppers in the final stages of their purchase journeys.

Promoting creativity in the OOH industry:

Sponsoring the Cannes Lions International Festival of Creativity. Celebrated creative achievement in the medium by sponsoring the Outdoor Lions awards for the 9th consecutive year, and by showcasing the creative and flexible potential of digital out-of-home via our giant digital rooftop billboard.

Second Quarter 2018 Results

Consolidated

Consolidated revenue increased $39.7 million, or 5.9%, during the second quarter of 2018 as compared to the second quarter of 2017. Consolidated revenue increased $23.6 million, or 3.5%, after adjusting for a $22.5 million impact from movements in foreign exchange rates and the $6.4 million impact from the sale of our business in Canada.

Consolidated direct operating and SG&A expenses increased $19.6 million, or 4.1%, during the second quarter of 2018 as compared to the second quarter of 2017. Consolidated direct operating and SG&A expenses increased $7.3 million, or 1.5%, in the second quarter, after adjusting for a $18.0 million impact from movements in foreign exchange rates and the $5.7 million impact from the sale of our business in Canada.

Consolidated operating income increased 7.0% to $94.0 million, during the second quarter of 2018 as compared to the second quarter of 2017, primarily due to revenue growth in our International and Americas businesses, partially offset by the impact from the sale of our business in Canada.

The Company’s OIBDAN increased 10.7% to $177.3 million, during the second quarter of 2018 as compared to the second quarter of 2017. The Company’s OIBDAN increased 8.7% in the second quarter 2018 compared to the same period of 2017, after adjusting for movements in foreign exchange rates and the impact from the sale of our business in Canada.

Americas

Americas revenues decreased $0.3 million, or 0.1%, during the second quarter of 2018 as compared to the second quarter of 2017. Revenues increased $6.1 million, or 2.1%, after adjusting for the $6.4 million impact from the sale of our business in Canada. The increase in revenue was due to higher digital and print revenue.

Direct operating and SG&A expenses decreased $4.3 million, or 2.4%, during the second quarter of 2018 as compared to the second quarter of 2017. Direct operating and SG&A expenses increased $1.4 million, or 0.8%, after adjusting for the $5.7 million impact from the sale of our business in Canada.

Operating income increased 5.1% to $78.7 million during the second quarter of 2018 as compared to the second quarter of 2017. OIBDAN increased $4.1 million, or 3.5%. OIBDAN increased $4.8 million, or 4.1%, during the second quarter of 2018, after adjusting for the $0.7 million impact from the sale of our business in Canada.

International

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180731005148/en.

AP RADIO
Update hourly