Clear Channel Outdoor reports higher international revenue, but ends quarter with a loss
Americas revenues decreased $2 million, or 1 percent, primarily driven by lower national account revenues
SAN ANTONIO, Texas – October 28, 2014 — Clear Channel Outdoor Holdings, Inc. today reported financial results for the third quarter ended September 30, 2014.
““With demand for out-of-home advertising increasing around the world, we kept building momentum in our Outdoor businesses during the quarter,” said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. “We drove solid growth at our International operations this quarter and we’ve seen a consistent improvement in our Americas segment since the beginning of the year. Our digital portfolio continues to expand, thereby fueling innovative solutions and initiatives in the US and abroad. As we continue to work with the world’s biggest brands and agencies in advertising, creative and media, we are engaging global consumers more deeply than ever.”
“We continue to deliver strong growth in our International business, with revenues increasing 5% and OIBDAN increasing 14% in the third quarter,” said Chief Executive Officer William Eccleshare. “Our new contracts in Italy, France and China, as well as our continued focus on superior execution are driving top and bottom line results. The growth of our local advertising business in the Americas remains strong, and we continued to address our sales organization and operational leadership during the quarter — we are pleased with the improvements we’ve seen since the beginning of the year.”
Third Quarter 2014 Results
Consolidated revenues increased $20 million, or 3% to $743 million in the third quarter of 2014 compared to $723 million in the same period of 2013. Excluding the effects of movements in foreign exchange rates, revenues increased $19 million or 3%.
- Americas revenues decreased $2 million, or 1% ($1 million, or 0%, excluding foreign exchange impacts), primarily driven by lower national account revenues. Higher digital revenues were partially offset by decreases in revenues from traditional product lines.
- International revenues increased $22 million, or 6% ($21 million, or 5%, excluding foreign exchange impacts), primarily driven by growth in both western Europe and emerging markets such as China.
The Company’s OIBDAN1 was up 2%, or $3 million, to $170 million for the three months ended September 30, 2014, compared to $167 million for the same period of 2013. Included in the 2014 third quarter OIBDAN of $170 million were $3 million and $6 million of operating and corporate expenses, respectively, associated with the Company’s strategic revenue and efficiency initiatives to attract additional advertising dollars to its businesses and improve operating efficiencies. OIBDAN for the three months ended September 30, 2013 included $6 million and $3 million of operating and corporate expenses, respectively, of such operating expenses.
The Company’s consolidated EBITDA, as defined under the CCWH Senior Notes indenture as defined below, was $767 million for the preceding twelve months ended September 30, 2014, down 2% compared to the same period of 2013.
The consolidated net loss attributable to the Company was $7 million in the third quarter of 2014 compared to consolidated net income attributable to the Company of $4 million in the same period of 2013.
The Company’s recent key highlights include:
- Installed 125 new digital displays in international markets for an end of quarter total of over 4,200 displays and 17 new digital billboards in North America for an end of quarter total of 1,125 across 40 markets.
- Expanded the ‘Connect’ interactive mobile advertising platform in Latin America with the first campaign being from the largest cosmetic franchise in the world, O Boticário, to raise awareness and increase brand engagement for the launch of a new line of fragrances. The wider Connect rollout in Latin America in 2014 will see 1,500 outdoor sites fitted with tags enabled for Near Field Communication (NFC), QR code and SMS capabilities.
- Sponsored Advertising Week in New York and developed a unique campaign using the digital kiosks at the Time Center, the hub of advertising week activity.
- Launched ‘Play London,’ a digital outdoor expansion initiative in the UK. Play London will feature the nationwide expansion of Storm, our network of premium digital boards, and Adshel Live, our network of bus-stop panels. Hundreds of digital sites for premium city-center locations will go live across the country by the end of 2014.