Here is an analysis of OUTFRONT 2Q 2024 earning release, OUTFRONT 2Q 24 earnings presentation and conference call, sponsored and analyzed by SignValue. The analysis focuses on the company’s US results because on June 7, 2024 OUTFRONT sold its Canadian operations for approximately $297 million US which makes consolidated figures less relevant.
- US Media Revenue increased by 4% to $461 million. Billboards were up 2.3%. Transit was up 10.9%. National was up 0.3%. Local was up 6.9%. Outfront’s billboard yield increased 3.9% from $2,865 in 2Q 23 two $2,975 in 2Q 24.
- US Media Cashflow after Corporate Expenses (Adjusted OIBDA) increased by 7.7% to $124 million.
- Capital spending totaled a subdued $23.9 million during 2Q 24.
- OUTFRONT had $2.5 billion in net debt at June 30, 2024 with a weighted average cost of debt of 5.6% and a Net Leverage ratio (Debt-cash divided by Consolidated EBITDA) of 5.0X.
CFO Matt Siegel says the Canadian sale has been deleveraging
As a June 30th our total net leverage was five times flat down from 5.4 times as of March 31st primarily due to the sale of our Canadian business we continue to target a network wide range of 4.4 to five times
CFO Matt Siegel say OUTFRONT is making few acquisitions
There were no larger notable acquisitions made during the quarter and looking at our current acquisition pipeline we continue to expect our 2024 deal activity will look like that of 2023.
SignValue’s take: OUTFRONT has reduced leverage with the sale of Canada and is benefiting improving transit ridership and transit advertising. 4% revenue growth is good considering that national advertising (on which OUTFRONT is more dependent than Lamar or Clear Channel Outdoor) was flat.
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