• Market Woes Impact Public OOH Companies in 4Q 2018

    Stock market woes hurt US Out of home operators during the 4th quarter of 2018 although Outfront and Lamar outperformed a dismal market.  2018 was the worst year for the stock market since the 2008 financial crisis.  On an annualized based the stock market was down 57% during the fourth quarter.

    • Outfront declined 10% during the fourth quarter of 2018 versus a 14% decline for the Standard and Poors 500 during the fourth quarter.  One explanation: Outfront’s third quarter revenues grew by 6% while US nominal GDP only grew 5% during the quarter.
    • Lamar declined 12% during the fourth quarter of 2018 versus a 14% decline in the Standard and Poors 500.  Lamar revenues grew 5% during the third quarter in line with US nominal GDP.
    • Clear Channel Outdoor declined 16% during the fourth quarter of 2018 versus a 14% decline in the Standard and Poors 500.  Clear Channel revenues only grew 3% in the third quarter of 2018 below the 5% growth in US nominal GDP.  Bankruptcy distractions, low margins, revenue growth which lags US GDP growth.  Insider hopes for a speedy execution of the Clear Channel Outdoor’s approved bankruptcy plan.

    Here’s the chart.  Outfront is purple, Lamar is green, the Standard and Poors index is black and Clear Channel Outdoor is blue.


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