Clear Channel Outdoor third quarter 2023 results can be summarized as US billboards down, everything else up. Here are the results of the Clear Channel Outdoor 3Q 23 earnings release, Clear Channel Outdoor 3Q 23 investor presentation and conference call.
- Consolidated third quarter revenue grew 2.7% to $517 million. US revenue declined 1.9%, Airport revenue grew 21%, Europe North revenue grew 5%. Here are the segment results for the company’s America (e.g. US) assets.
- Adjusted cashflow (EBITDA) increased 1% to $139 million.
- Capital expenditures declined by 13% to $33 million during the third quarter of 2023. Capexp was up in the americans and down everywhere else.
- Debt totaled $5.6 billion at 9/20/23 with a weighted average cost of 7.5%. Debt/Cashflow is a high 10.7. Billboard Insider considers debt/cashflow in excess of 6.0 as too high for an out of home company.
Clear Channel Outdoor CEO Scott Wells says premium locations have been doing best.
2023 has been a super premium market which means spectaculars it means airports it means iconic locations in in iconic places you know whether that’s in New York or Miami LA or Vegas that that part of the market has been red red hot and airports has benefited from that dynamic
Wells expects pharma, packaged goods and programmatic to boost revenue in the fourth quarter
In the fourth quarter we expect two of our fastest growing verticals in the US will be pharma and packaged goods these are verticals we’ve called out as opportunities for several quarters and our sales teams are making good inroads and building business in both areas in addition we continue to see success in building our programmatic platform
Clear Channel Outdoor CFO Brian Coleman on cutting expenses
We’ve said in the past with the divestiture of the international businesses we would expect at least $30 million of corporate expense expenses to be reduced
Billboard Insider’s take: Progress, but much work remains. To hit the $30 million corporate expense savings goal, Clear Channel Outdoor will need to trim corp expenses by 15%. Billboard Insider twice heard the phrase zero-based budgeting when Clear Channel Outdoor execs talked about expenses, which suggests someone (the board, the new investors or the finance department) is pushing for improved margins.
The market liked what it heard. Clear Channel Outdoor rose 14% on a day when the S&P 500 was flat and Lamar and OUTFRONT declined by 0.5%.
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