Yesterday Clear Channel Outdoor Holdings announced plans to reduce headcount in Europe and Latin America in response to the impact of covid on revenue. The company expects to achieve an annual pre tax cost saving of $20 million. Looks to Insider like this equates to 2% of total international expenses and 7% of international SG&A expenses.
Clear Channel Outdoor International Expense Cuts Compared to 2019 Financials
The new cuts come on top of a Clear Channel Outdoor company wide operating cost savings of approximately $100 million during the second quarter of 202o.
Insider’s take: The cuts may be small compared to the size of the international expense base and to the size of the previous expense cuts but they are significant in that they are permanent while a good portion of the second quarter 202o operating savings is temporary and will decline as revenues improve. There’s plenty of room for improvement. During 2019 Clear Channel Outdoor had a 21% cashflow margin versus a 28% cashflow margin for OUTFRONT and a 43% cashflow margin for Lamar.
Clear Channel Outoor finished the day up 0.7%. OUTFRONT was up 3.2%. Lamar up 2.9%. The S&P 500 dropped 0.5%