Clear Channel announced better than expected financials yesterday. Here’s a summary from the CCO 2Q 21 earnings release, earnings deck and conference call.
- Revenue increased by 69% to $531 million during the second quarter of 2021. Americas revenue grew 36% during the second quarter of 2021, due to digital billboard growth. European revenue grew 108%. Other revenues (mostly Latin America) increased 57%. Clear Channel executives expect the company’s revenues will be 95% of pre-covid 2019 revenues during the second half of 2021.
- Adjusted cashflow was $97 million in the second quarter of 2021 versus a $63 million loss during the second quarter of 2020. The company was cashflow positive in the Americas and at breakeven cashflow in Europe and Latin America.
- Capital expenditures were $32 million during the second quarter of 2021, primarily for digital displays in Americas and Europe.
- The company lowered the average cost of debt from 6.1% during the fourth quarter of 2020 to 5.6% during the the quarter ended June 390, 2021 due to the refinance of $1 billion of 9.25% notes with 7.5% notes.
- Eccleshare announced a plan to step down as worldwide CEO effective January 3, 2021. Scott Wells will take on Worldwide CEO duties in addition to running Clear Channel Americas.
Eccleshare on the company’s recovery
“All of our business segments have grown well ahead of last year with some markets now beginning to either match or exceed 2019 levels…The recovery is across the board led primarily by digital roadside business…Business is back. We are very excited by the trends we are seeing…”
Eccleshare on selling assets
“The M&A environment is certainly getting more active…valuation gaps are narrowing…in February of last year we said we would focus the business more in higher margin assets and that remains out strategy and the would lead you to some fairly obvious conclusions are to the geographies that we would be looking at…”
The market liked what it heard. Clear Channel Outdoor finished the day up 11.7%. OUTFRONT rose 2.1%, Lamar rose 1.5%, the S&P 500 rose 0.4%.
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