Moorgate Capital Partners produces an outstanding quarterly report on the out of home advertising industry. Here are some charts in Moorgate’s 4Q 2024 State of the OOH Industry report which caught our eye.

A muted acquisitions market.  

Here’s a breakout of Public company OOH acquisitions from 2019 to 2024.  It shows a much lower level of M&A activity for the past two years.  Billboard Insider can’t help wondering if 2025 will be another weak year for acquisitions if the Trump tariffs trigger a recession.

Stable debt costs

Weighted average debt costs have been stable over the past two years.  Lamar’s weighted average cost of debt is 5%.  Clear Channel Outdoor’s weighted average cost of debt is 7.4%.

Declining leverage for Lamar and OUTFRONT

Lamar has reduced leverage by using cashflow to pay down a term loan.  OIUTFRONT has reduced leverage by selling Canadian assets.  Clear Channel hasn’t been able to reduce levarage in the past two years because it hasn’t been able to sell international assets for a cashflow multiple which exceeds it’s leverage.  Billboard Insider thinks Clear Channel Outdoor is carrying almost twice as much debt as it should.

To obtain a copy of Moorgate’s 4Q 2024 OOH report contact Jeff Seddon, Director, Moorgate Capital Partners, jeff.seddon@moorgatepartners.com, 609-276-2508

To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title.  Our newsletter is free and we don’t sell our subscriber list.

Paid Advertisement