Clear Channel Outdoor reports Q1 2024 revenue of $482 million, an increase of 10.1%
Thursday, May 9, 2024
SAN ANTONIO, May 9, 2024 — Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) today reported financial results for the quarter ended March 31, 2024.
“We delivered first quarter consolidated revenue of $482 million, an increase of 10.1%, or 9.3% excluding movements in foreign exchange rates, reflecting record first quarter results in our America, Airports and Europe-North segments excluding sold markets and movements in foreign exchange rates,” said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “The trends we saw late last year largely continued into the first quarter, including improving demand among advertisers in all regions and key verticals in our America business segment.
“We are executing on our strategic plan, which is aimed at enhancing the profitability of our business, focusing on our higher-margin U.S. markets and investing in our technology and sales resources to elevate our ability to serve a broader range of advertisers. We believe that our first quarter results indicate that we are effectively pursuing business across a greater number of channels.
“We continue to actively manage and strengthen our balance sheet as evidenced by our recent successful refinancing activities that extended our 2025 and 2026 maturities and created flexibility supporting the M&A process in Europe. We are positive about the trends we are seeing in our business and remain on track in delivering growth this year.”
Financial Highlights:
Financial highlights for the first 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 Ended |
% Change |
|
|
Revenue: |
|||
|
Consolidated Revenue2 |
$ 481.8 |
10.1 % |
|
|
Excluding movements in FX1,2 |
478.1 |
9.3 % |
|
|
America Revenue |
249.8 |
5.8 % |
|
|
Airports Revenue |
76.9 |
43.0 % |
|
|
Europe-North Revenue |
139.4 |
8.5 % |
|
|
Excluding movements in FX1 |
136.1 |
5.9 % |
|
|
Net Loss: |
|||
|
Loss from Continuing Operations |
(88.7) |
(4.3) % |
|
|
Adjusted EBITDA1: |
|||
|
Adjusted EBITDA1,2 |
96.7 |
53.6 % |
|
|
Excluding movements in FX1,2 |
96.3 |
53.0 % |
|
|
America Segment Adjusted EBITDA3 |
95.5 |
17.3 % |
|
|
Airports Segment Adjusted EBITDA3 |
19.1 |
204.6 % |
|
|
Europe-North Segment Adjusted EBITDA3 |
14.3 |
99.7 % |
|
|
Excluding movements in FX1 |
13.8 |
92.5 % |
|
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. |
Debt Activity:
On March 18, 2024, we issued $865.0 million aggregate principal amount of 7.875% Senior Secured Notes Due 2030 (the “CCOH 7.875% Senior Secured Notes”) and used a portion of the proceeds therefrom to prepay $835.0 million of borrowings outstanding under our Term Loan Facility. At the same time, we amended our Senior Secured Credit Agreement to, among other things, refinance the $425.0 million remaining principal balance on the Term Loan Facility and to extend its maturity date from 2026 to 2028, subject to certain conditions.
On March 22, 2024, our indirect wholly-owned subsidiary, Clear Channel International B.V. (“CCIBV”), entered into a credit agreement comprising two tranches of term loans (the “CCIBV Term Loan Facility”) totaling an aggregate principal amount of $375.0 million, which mature in 2027, and used the proceeds therefrom to redeem all of the outstanding CCIBV 6.625% Senior Secured Notes Due 2025 (the “CCIBV Senior Secured Notes”).
Please refer to the “Liquidity and Financial Position” section of this earnings release for additional details.
Guidance:
Our expectations for the second quarter of 2024 are as follows:
|
Second Quarter of 2024 |
% change from prior year |
||||||
|
(in millions) |
Low |
High |
Low |
High |
|||
|
Consolidated Revenue1,2 |
$ 547 |
$ 572 |
3 % |
8 % |
|||
|
America |
290 |
300 |
1 % |
4 % |
|||
|
Airports |
82 |
87 |
15 % |
22 % |
|||
|
Europe-North1 |
155 |
165 |
3 % |
10 % |
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|
1 |
Excludes movements in FX |
|
2 |
Excludes results of discontinued operations |
Our expectations for the full year of 2024 have not changed from the guidance we provided in our earnings release issued on February 26, 2024, except for loss from continuing operations and Adjusted Funds from Operations (“AFFO”). Our updated expectations for the full year of 2024 are as follows:
|
Full Year of 2024 |
% change from prior year |
||||||
|
(in millions) |
Low |
High |
Low |
High |
|||
|
Consolidated Revenue1,2 |
$ 2,200 |
$ 2,260 |
3 % |
6 % |
|||
|
America |
1,135 |
1,165 |
3 % |
6 % |
|||
|
Airports |
345 |
360 |
11 % |
16 % |
|||
|
Europe-North1 |
635 |
655 |
2 % |
6 % |
|||
|
Loss from Continuing Operations1 |
(150) |
(120) |
(5) % |
(24) % |
|||
|
Adjusted EBITDA1,2,3 |
550 |
585 |
3 % |
9 % |
|||
|
AFFO1,2,3 |
80 |
105 |
(4) % |
26 % |
|||
|
Capital Expenditures2 |
130 |
150 |
(10) % |
4 % |
|||
|
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 March 31, |
% Change |
|||
|
2024 |
2023 |
||||
|
Revenue: |
|||||
|
America |
$ 249,777 |
$ 236,049 |
5.8 % |
||
|
Airports |
76,926 |
53,789 |
43.0 % |
||
|
Europe-North |
139,393 |
128,503 |
8.5 % |
||
|
Other |
15,656 |
19,079 |
(17.9) % |
||
|
Consolidated Revenue |
$ 481,752 |
$ 437,420 |
10.1 % |
||
|
Revenue excluding movements in FX1: |
|||||
|
America |
$ 249,777 |
$ 236,049 |
5.8 % |
||
|
Airports |
76,926 |
53,789 |
43.0 % |
||
|
Europe-North |
136,086 |
128,503 |
5.9 % |
||
|
Other |
15,266 |
19,079 |
(20.0) % |
||
|
Consolidated Revenue excluding movements in FX |
$ 478,055 |
$ 437,420 |
9.3 % |
||
|
1 |
This is a non-GAAP financial measure. See “Supplemental Disclosures” section herein for more information. |
Revenue for the first quarter of 2024, as compared to the same period of 2023:
America: Revenue up 5.8%:
- Revenue up in all regions
- Higher billboards revenue driven by increased demand and digital deployments; growth in both print and digital
- Digital revenue up 7.9% to $84.2 million from $78.0 million
- National sales comprised 34.5% of America revenue, compared to 33.1% in the prior year
Airports: Revenue up 43.0%:
- Strong demand across portfolio
- Digital revenue up 44.1% to $42.6 million from $29.6 million
- National sales comprised 55.2% of Airports revenue, compared to 60.1% in the prior year
Europe-North: Revenue up 8.5%; excluding movements in FX, up 5.9%:
- Higher revenue in the U.K., Sweden and Belgium, mainly due to increased demand and digital deployments; partially offset by loss of transit contract in Norway
- Digital revenue up 12.5% to $73.5 million from $65.3 million; digital revenue, excluding movements in FX, up 9.1% to $71.3 million
Other: Revenue down 17.9%; excluding movements in FX, down 20.0%:
- Loss of contract in Singapore; partially offset by higher revenue in Latin America.SOURCE Clear Channel Outdoor Holdings, Inc.
For full report, visit https://investor.clearchannel.com/