Here are five things Billboard Insider learned from reading OUTFRONT Media’s 2023 10-k.
Entertainment, Entertainment, Entertainment
As Hollywood goes, so goes OUTFRONT. The entertainment industry accounts for 20% of OUTFRONT’s total revenues. When movie-making is curtailed by COVID or an actors strike, OUTFRONT will suffer. When Hollywood is healthy OUTFRONT thrives.
OUTFRONT revenue by industry sector (2021-2023)
Big Markets, big revenues and big leases.
OUTFRONT’s billboards are mainly in big urban markets. More revenue is possible but sophisticated landlords will drive up lease costs. You can see this when you compare OUTFRONT’s revenue per board and lease cost per board with Lamar. OUTFRONT has higher revenue per employee, twice as much revenue per billboard display but 6 times as must monthly lease cost per billboard structure.
OUTFRONT loves to sell advertising on other people’s digital billboards
OUTFRONT loves to sell advertising on other people’s digital billboards. Here’s what the 10-k says: “…in 2023, we entered into marketing arrangements to sell advertising on 46 third-party digital billboard displays in the U.S. and two in Canada.” In 2022 the company entered into marketing arrangement to sell advertising on 85 third-party digital billboard displays.
Transit troubles.
OUTFRONT took $535 million in impairment charges in 2023 to write down the value of transit assets. Here’s why: “Transit ridership remains materially below pre-COVID-19 pandemic level in our largest transit markets and while we expect ridership to gradually grow over time, we do not expect ridership to reach pre-COVID-19 pandemic levels during the remaining terms of our current transit agreements. While ridership has increased during 2023 as compared to 2022, the increase in ridership has not led to an increase in overall demand for transit displays”
Fewer People
OUTFRONT cut the workforce 15% during covid and total employees are still 3% below pre-covid.
OUTFRONT Employees 2019-2023
To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title. Our newsletter is free and we don’t sell our subscriber list.
Paid Advertisement
