November 9, 2016 Last Updated 9:15 am

Clear Channel Outdoor reports 3.3% decrease in revenue, net loss of $31M in Q3 report

The outdoor ad business is often ignored when talking about the digital media world, but much of the ad space is now digital. One of its leaders, Clear Channel Outdoor Holdings, reported its third quarter earnings today and said revenue fell 3.3 percent, and while operating income was up, net income was a loss.

“In this quarter, our Americas and International outdoor businesses continued to invest in building programmatic buying platforms and developing new research analytics tools to help ensure our place with our advertisers in an increasingly digital world,” said Bob Pittman, Chairman and CEO of Clear Channel Outdoor Holdings, Inc. “To stay as competitive as possible, we believe it’s critical to do business with advertising and marketing partners in the same way that the digital advertising industry does today. And, we continue to invest in our digital out-of-home network to expand our ability to offer innovative solutions to our marketing partners.”

I actually interviewed with this company a number of years ago, when the Chicago division was run by a former newspaper executive. I think he thought I would be a good addition, but when I interviewed with some line managers they did not like my thought that the future was digital displays. Their attitude was that they would sell print outdoor advertising, whether their customers wanted it or not.

As you can tell by the quote from their current CEO, that doesn’t seem to be the attitude today.

Here is their earnings statement:


SAN ANTONIO, Texas – November 9, 2016 — Clear Channel Outdoor Holdings, Inc. today reported financial results for the third quarter ended September 30, 2016.

“In this quarter, our Americas and International outdoor businesses continued to invest in building programmatic buying platforms and developing new research analytics tools to help ensure our place with our advertisers in an increasingly digital world,” said Bob Pittman, Chairman and Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “To stay as competitive as possible, we believe it’s critical to do business with advertising and marketing partners in the same way that the digital advertising industry does today. And, we continue to invest in our digital out-of-home network to expand our ability to offer innovative solutions to our marketing partners.”

“International outdoor delivered growth in both revenues and operating income,” said Rich Bressler, Chief Financial Officer. “Americas outdoor revenue and operating income declined due to the sale of nine non-strategic markets. Excluding the sale, Americas outdoor revenues increased.”

Key Financial Highlights

The Company’s key financial highlights for the third quarter of 2016 include:

  • Consolidated revenue decreased 3.3%. Consolidated revenue increased 2.3%, after adjusting for a $5.9 million impact from movements in foreign exchange rates and the $32.8 million impact of non-strategic markets sold in 2016.
  • Americas revenues decreased $24.3 million, or 7.0%. Revenues increased $3.5 million, or 1.1%, after adjusting for a $0.1 million impact from movements in foreign exchange rates and a $27.9 million impact from the sale of non-strategic markets.
  • International revenues increased $1.2 million, or 0.3%. Revenues increased $12.1 million, or 3.5%, after adjusting for a $6.0 million impact from movements in foreign exchange rates and a $4.9 million impact from the sale of our business in Turkey in the second quarter of 2016.
  • Operating income increased 14.7% to $60.8 million. OIBDAN decreased 5.8%. OIBDAN increased 1.6%, excluding the impact from movements in foreign exchange rates and the impact of the non-strategic markets sold in 2016.

Key Non-Financial Highlights

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

  • Installed 911 new digital displays in our North American and international markets for an end-of-quarter total of 1,082 across 28 markets in North America and over 9,000 digital displays in our international markets.
  • Renewed the contract for the Hartsfield-Jackson Atlanta International Airport, recently named the “World’s Busiest Airport” for the 18th consecutive year.
  • Secured a new contract for the Roanoke-Blacksburg Regional Airport in Southern Virginia, home to Virginia Tech University and 20 other colleges and universities and awarded the media contract for the Punta Cana International Airport in the Dominican Republic.
  • Announced the conversion of 500 telephone boxes in London acquired in the first quarter into brand new phone boxes featuring Wi-Fi, interactive local maps and payphone services, with an Adshel Live digital screen integrated into every unit.
  • Awarded rights to market more than 800 display sites at premium municipal locations in Lucerne, Switzerland.
  • Launched Trace tool in the UK, which tracks the consumer purchase journey and allows media planners and advertisers to explore how best to engage their target audiences at the right time, in the right place with the right message.

cch-q3-16

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