Clear Channel Outdoor Holdings, Inc. Reports Results for the Third Quarter of 2024
SAN ANTONIO, Oct. 31, 2024 /PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) (the "Company") today reported financial results for the quarter ended September 30, 2024.
"Our third quarter consolidated revenue of $559 million increased 6.1%, or 5.7% excluding movements in foreign exchange rates, with growth across all of our business segments," said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. "Our America segment delivered a revenue increase of 5.0% during the period, reflecting improved national advertising sales and growth across all regions.
"We continue to pursue a range of initiatives aimed at leveraging our technology investments and enhanced sales teams to maximize our performance in the U.S. Utilizing our digital expertise and RADAR data analytics resources, we are making inroads into verticals that have traditionally not relied on out-of-home to reach their target audiences. We have also secured, effective November 1, 2024, a large 15-year contract for roadside advertising assets controlled by the New York MTA. These initiatives have broadened our revenue base as we pursue growth opportunities.
"Our business is performing well, and we remain on track to deliver on our full year 2024 consolidated financial guidance. We are committed to executing our strategic plan, including continuing the sales processes related to our international businesses. Our ultimate goals include organically growing cash flow and reducing leverage on our balance sheet."
Financial Highlights:
Financial highlights for the third quarter of 2024 as compared to the same period of 2023, including financial highlights excluding movements in foreign exchange rates ("FX")1:
(In millions)
Three Months EndedSeptember 30, 2024
% Change
Revenue:
Consolidated Revenue2
$ 559.0
6.1 %
Excluding movements in FX1,2
556.7
5.7 %
America Revenue
292.8
5.0 %
Airports Revenue
82.3
9.0 %
Europe-North Revenue
166.4
11.4 %
Excluding movements in FX1
162.2
8.6 %
Net Loss:
Loss from Continuing Operations
(31.5)
(38.3) %
Adjusted EBITDA1:
Adjusted EBITDA1,2
142.8
2.6 %
Excluding movements in FX1,2
141.9
1.9 %
America Segment Adjusted EBITDA3
128.4
5.8 %
Airports Segment Adjusted EBITDA3
16.9
9.0 %
Europe-North Segment Adjusted EBITDA3
28.3
(0.5) %
Excluding movements in FX1
27.2
(4.5) %
1
This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
2
Financial highlights exclude results of discontinued operations. See "Supplemental Disclosures" section herein for more information.
3
Segment Adjusted EBITDA is a GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
Guidance:
Our expectations for the fourth quarter of 2024 are as follows:
Fourth Quarter of 2024
% change from prior year
(in millions)
Low
High
Low
High
Consolidated Revenue1,2
$ 628
$ 653
(1) %
3 %
America
308
318
3 %
7 %
Airports
111
116
— %
4 %
Europe-North1
185
195
(4) %
2 %
1
Excludes movements in FX
2
Excludes results of discontinued operations
We have updated our full year 2024 guidance from the guidance previously provided in our earnings release issued on August 7, 2024, as follows:
Full Year of 2024
% change from prior year
(in millions)
Low
High
Low
High
Consolidated Revenue1,2
$ 2,222
$ 2,247
4 %
6 %
America
1,141
1,151
4 %
5 %
Airports
356
361
14 %
16 %
Europe-North1
648
658
5 %
6 %
Loss from Continuing Operations1
(165)
(150)
5 %
(5) %
Adjusted EBITDA1,2,3
560
580
5 %
8 %
AFFO1,2,3
90
105
8 %
26 %
Capital Expenditures2
130
140
(10) %
(3) %
1
Excludes movements in FX
2
Excludes results of discontinued operations
3
This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
Expected results and estimates may be impacted by factors outside of the Company's control, and actual results may be materially different from this guidance. See "Cautionary Statement Concerning Forward-Looking Statements" herein.
Results:
Results provided herein exclude amounts related to discontinued operations for all periods presented.
Revenue:
(In thousands)
Three Months Ended
September 30,
%
Change
Nine Months Ended
September 30,
%
Change
2024
2023
2024
2023
Revenue:
America
$ 292,821
$ 278,760
5.0 %
$ 832,805
$ 802,326
3.8 %
Airports
82,331
75,558
9.0 %
245,476
200,392
22.5 %
Europe-North
166,361
149,366
11.4 %
470,489
427,778
10.0 %
Other
17,475
23,102
(24.4) %
50,511
64,530
(21.7) %
Consolidated Revenue
$ 558,988
$ 526,786
6.1 %
$ 1,599,281
$ 1,495,026
7.0 %
Revenue excluding movements in FX1:
America
$ 292,821
$ 278,760
5.0 %
$ 832,805
$ 802,326
3.8 %
Airports
82,331
75,558
9.0 %
245,476
200,392
22.5 %
Europe-North
162,209
149,366
8.6 %
463,374
427,778
8.3 %
Other
19,299
23,102
(16.5) %
52,624
64,530
(18.5) %
Consolidated Revenue excluding movements in FX
$ 556,660
$ 526,786
5.7 %
$ 1,594,279
$ 1,495,026
6.6 %
1 This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
Revenue for the third quarter of 2024, as compared to the same period of 2023:
America: Revenue up 5.0%:
Revenue up in all regions driven by increased demand for both digital and printed billboards and the deployment of new digital billboards
Digital revenue up 8.4% to $105.8 million from $97.6 million
National sales comprised 36.3% of America revenue
Airports: Revenue up 9.0%:
Strong advertising demand, with growth led by the Port Authority of New York and New Jersey airports
Digital revenue up 0.8% to $42.1 million from $41.8 million
National sales comprised 58.6% of Airports revenue
Europe-North: Revenue up 11.4%; excluding movements in FX, up 8.6%:
Revenue up in most countries due to increased demand, most significantly in Sweden; partially offset by loss of transit contract in Norway
Digital revenue up 15.4% to $96.7 million from $83.8 million; digital revenue, excluding movements in FX, up 12.4% to $94.2 million
Other: Revenue down 24.4%; excluding movements in FX, down 16.5%:
Loss of contract in Singapore
Direct Operating and SG&A Expenses1:
(In thousands)
Three Months Ended
September 30,
%
Change
Nine Months Ended
September 30,
%
Change
2024
2023
2024
2023
Direct operating and SG&A expenses:
America
$ 164,553
$ 157,456
4.5 %
$ 482,571
$ 470,158
2.6 %
Airports
65,406
60,038
8.9 %
190,485
162,274
17.4 %
Europe-North
138,679
121,154
14.5 %
394,942
366,706
7.7 %
Other
15,808
19,812
(20.2) %
50,475
57,360
(12.0) %
Consolidated Direct operating and SG&A expenses2
$ 384,446
$ 358,460
7.2 %
$ 1,118,473
$ 1,056,498
5.9 %
Direct operating and SG&A expenses excluding movements in FX3:
America
$ 164,553
$ 157,456
4.5 %
$ 482,571
$ 470,158
2.6 %
Airports
65,406
60,038
8.9 %
190,485
162,274
17.4 %
Europe-North
135,663
121,154
12.0 %
389,426
366,706
6.2 %
Other
17,394
19,812
(12.2) %
52,650
57,360
(8.2) %
Consolidated Direct operating and SG&A expenses excluding movements in FX
$ 383,016
$ 358,460
6.9 %
$ 1,115,132
$ 1,056,498
5.5 %
1
"Direct operating and SG&A expenses" as presented throughout this earnings release refers to the sum of direct operating expenses (excluding depreciation and amortization) and selling, general and administrative expenses (excluding depreciation and amortization).
2
Includes restructuring and other costs of $1.0 million and $0.3 million during the three months ended September 30, 2024 and 2023, respectively, and $2.5 million and $0.8 million during the nine months ended September 30, 2024 and 2023, respectively.
3
This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
Direct operating and SG&A expenses for the third quarter of 2024, as compared to the same period of 2023:
America: Direct operating and SG&A expenses up 4.5%:
Lower property taxes in prior year related to a legal settlement
Higher compensation costs driven by higher variable-incentive compensation, increased headcount and pay increases
Higher production, installation and maintenance costs associated with revenue growth
Site lease expense down 4.7%, to $85.9 million from $90.1 million, driven by the renegotiation of an existing contract and a decrease in estimated lessor property taxes in certain lease arrangements
Airports: Direct operating and SG&A expenses up 8.9%:
Site lease expense up 9.1%, to $51.5 million from $47.2 million, driven by higher revenue and lower rent abatements
Europe-North: Direct operating and SG&A expenses up 14.5%; excluding movements in FX, up 12.0%:
Site lease expense up 8.4%, to $60.3 million from $55.6 million; site lease expense, excluding movements in FX, up 6.2% to $59.0 million driven by higher revenue and new contracts, partially offset by contract loss in Norway
Higher property taxes and higher rental costs for additional digital displays
Higher compensation costs driven by pay increases and variable-incentive compensation
Other: Direct operating and SG&A expenses down 20.2%; excluding movements in FX, down 12.2%
Loss of contract in Singapore
Corporate Expenses:
(In thousands)
Three Months Ended
September 30,
%
Change
Nine Months Ended
September 30,
%
Change
2024
2023
2024
2023
Corporate expenses1
$ 40,948
$ 34,931
17.2 %
$ 125,778
$ 129,427
(2.8) %
Corporate expenses excluding movements in FX2
40,925
34,931
17.2 %
125,401
129,427
(3.1) %
1
Includes restructuring and other costs of $1.4 million and $0.6 million during the three months ended September 30, 2024 and 2023, respectively, and $5.2 million and $20.2 million during the nine months ended September 30, 2024 and 2023, respectively. Restructuring and other costs for the nine months ended September 30, 2023 include an expense of $19.0 million recorded for the resolution of the investigation of the Company's former indirect, non-wholly-owned subsidiary, Clear Media Limited.
2
This is a non-GAAP financial measure. See "Supplemental Disclosures" section herein for more information.
Corporate expenses for the third quarter of 2024, as compared to the same period of 2023, up 17.2%:
Higher employee compensation costs, mainly driven by insurance benefits and share-based compensation
Higher legal costs associated with property and casualty settlements
Loss from Continuing Operations:
(In thousands)
Three Months Ended
September 30,
%
Change
Nine Months Ended
September 30,
%
Change
2024
2023
2024
