Here are four things Billboard Insider learned from reading Clear Channel Outdoor’s 2023 10k.

Cash goes to interest.

Cash interest on debt totaled $404 million in 2023 compared to cashflow (EBIDTA) of $423 million.  With interest expense equal to cashflow, Clear Channel Outdoor has little money to spend on acquisitions or capexp and no money for dividends.   OUTFRONT’s interest is about one-third of cashflow.  Lamar’s interest is only about one-sixth of cashflow.

2023 Cashflow (EBIDTA) and Interest for Clear Channel Outdoor, OUTFRONT and Lamar

Which leaves little money for growth…

Over the past three years Clear Channel Outdoor has spent half as much as OUTFRONT and one-third as much as Lamar on growth spending (i.e. capital expenditure and acquisitions).  Debt is limiting Clear Channel Outdoor’s growth prospects.

Capital Expenditures and Acquisitions for 2021-2023

Note: OUTFRONT capital spending includes MTA prepayment costs and franchise costs.

Clear Channel gave away France.

What’s a $265 million business with 800 employees worth?  Not much when it comes to Clear Channel Outdoor’s French operation which was sold in October 2023.  “We delivered our business in France to Equinox with $44.5 million of cash…and Equinox assumed the $29.7 million state-guaranteed loan held by Clear Channel France.”  So the transaction generated no cash to pay down debt.  Even so Billboard Insider thinks it made sense to give away this highly regulated, inflexible workforce, subpar operation.  One less poorly performing distraction for management.

Employees declining with asset sales

Clear Channel Outdoor’s employee base has been declining due to international asset sales.  The company’s US workforce declined 11% during covid but is back to where it was prior to covid.

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