“The first quarter came in largely as expected despite an uncertain economic climate” was how Nick Brien, interim CEO of Outfront Media introduced first quarter financials. Here are are the results of the OUTFRONT 1Q 2025 earnings release, 1Q 2025 earnings presentation and conference call, sponsored and analyzed by SignValue.
- Consolidated Revenues decreased 4.4% to 390 million due to the sale of the Canadian business and the exit of the MTA billboard contract. Organic revenues, adjusted for the sale, increased 0.2%. Organic Billboard revenue was down 1%. Digital billboard revnues were up 5%. Static billboard revenues were down 3%. Transit revenue increased 2.6%. National revenues increased 4.3%. Local revenues declined 3.3%. The company’s billboards had a yield of $2,623 in 1Q 25.
- Consolidated adjusted OIBDA declined 3% to 64 million in the 1Q25 due to $5 million of severance costs and executive search fees.
- The company had $2.6 billion in debt at 3/31/25 with a weighted average cost of 5.4% and a moderate debt/cashflow (OBIDA) ratio of 4.8 times
CFO Matt Siegel says the company will exit another large unprofitable billboard contract during the second quarter of 2025
We will be exiting another large but marginally profitable billboard contract. In fact this one is in Los Angeles. We expect this exit on its own will pose a 200 basis point run rate impact to billboard revenue growth until we lap it next year. Given this contract was only marginally profitable, we expect a very limited impact on adjusted OIBDA
Siegel confirmed muted OUTFRONT M&A activity
We spent approximately $6 million on acquisitions during the quarter and looking at our current acquisition pipeline we continue to expect our 2025 deal activity to be focused on opportunistic tuck-ins…
OUTFRONT CEO Nick Brien says tarrifs are causing some advertisers to postphone buys.
When it comes to the tarrifs and the implications…either in cuts or postponement we’ve actually seen it in really in the in the range of postponements and we’ve seen that with automotive some government and political
SignValue’s Take: Nice to see OUTFRONT is prioritizing cashflow margins and profits. In a world of scarce financial resources you have to prioritize and it makes sense to exit low margin contracts. This will be good for shareholders in the long term.
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