Debt costs are moderating
Debt costs have been stable at the public out of home companies. Lamar has a 5% weighted average cost of debt, followed by OUTFRONT (5.5%) and Clear Channel Outdoor (7.4%). The cost of debt is a function of each company’s leverage. No surprise that Lamar has the lowest leverage with a debt/cashflow(EBIDTA) of 3.2, followed by OUTFRONT at 5.5 and Clear Channel Outdoor at 9.5
Place based difficulties due to weak cinema advertising
Billboard Insider has wondered why placed-based out of home has done so poorly since covid. Moorgate thinks that place based is down because of the poor performance of cinema advertising. Cinema advertising is still 45% below pre-covid levels. Other forms of place based are within 5-35% of precovid levels.
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