CLEAR CHANNEL OUTDOOR HOLDINGS, INC. REPORTS RESULTS FOR THE THIRD QUARTER OF 2022
SAN ANTONIO, Nov. 8, 2022 /PRNewswire/ — Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) today reported financial results for the quarter that ended September 30, 2022.
“Our strong third-quarter revenue results, excluding the impact of movements in foreign exchange rates, reflect the resiliency of our platform and the continued execution of our strategic plan, which we detailed during our Investor Day in September,” said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “This performance was at the high end of our consolidated revenue guidance and supported by broad-based demand from advertisers, with notable strength across our digital footprint in the Americas and Europe.
“Our team is focused on executing on our digital transformation and our efforts to innovate and modernize how we do business and integrate our solutions with our partners and customers. We’re progressing in giving them the kind of experience they expect from digital media, which we believe contributes to our growth now and in the future.
“Looking ahead, our business remains healthy as advertisers continue to tap the out-of-home market, the last mass visual medium, to reach consumers on the move. We’re keeping a close eye on business trends and have the levers to moderate our costs should the need arise, and we remain committed to maintaining ample liquidity on our balance sheet.
“Finally, we are continuing to conduct a review of strategic alternatives for our European business with the goal of optimizing our portfolio in the best interests of our shareholders with our resulting greater focus on our core Americas business.”
Financial Highlights:
Financial highlights for the third quarter of 2022 as compared to the same period of 2021, including financial highlights excluding movements in foreign exchange rates (“FX”)1:
(In millions) | Three Months Ended | % Change | |
Revenue: | |||
Consolidated Revenue | $ 602.9 | 1.1 % | |
Excluding movements in FX1 | 642.9 | 7.8 % | |
Americas Revenue | 346.5 | 8.6 % | |
Europe Revenue | 239.2 | (8.9) % | |
Excluding movements in FX1 | 278.7 | 6.1 % | |
Net Loss: | |||
Consolidated Net Loss | (38.8) | (4.9) % | |
Adjusted EBITDA1: | |||
Adjusted EBITDA1 | 129.5 | (5.0) % | |
Excluding movements in FX1 | 131.2 | (3.8) % | |
Americas Segment Adjusted EBITDA1 | 144.7 | 4.1 % | |
Europe Segment Adjusted EBITDA1 | 15.1 | (51.7) % | |
Excluding movements in FX1 | 18.0 | (42.5) % |
1 See “Supplemental Disclosure Regarding Segment Adjusted EBITDA and Non-GAAP Financial Information” section herein for explanations of these financial measures. |
Guidance:
Our expectations for the fourth quarter of 2022 are as follows:
Fourth Quarter of 2022 | |||
(in millions) | Low | High | |
Consolidated Revenue1 | $ 740 | $ 765 | |
Americas | 370 | 380 | |
Europe1 | 345 | 360 | |
1 Excludes movements in FX | |||
We are in line with the full year 2022 guidance previously provided in our press release issued on September 8, 2022, which was furnished in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on that same date, with the exception of Consolidated net loss, which we have updated in the table below. Our revised full year 2022 guidance is as follows:
Full Year of 2022 | |||
(in millions) | Low | High | |
Consolidated Revenue1 | $ 2,600 | $ 2,635 | |
Americas | 1,355 | 1,375 | |
Europe1 | 1,170 | 1,190 | |
Consolidated Net Loss1 | (165) | (138) | |
Adjusted EBITDA1,2 | 560 | 590 | |
Segment Adjusted EBITDA2 | |||
Americas | 555 | 570 | |
Europe1 | 130 | 145 | |
Corporate Expenses1 | 159 | 169 | |
Adjusted Corporate Expenses1,2 | 125 | 135 | |
Capital Expenditures | 185 | 205 | |
Americas | 105 | 115 | |
Europe | 65 | 75 | |
Adjusted Funds from Operations (“AFFO”)1,2 | 160 | 180 | |
1 Excludes movements in FX | |||
2 See “Supplemental Disclosure Regarding Segment Adjusted EBITDA and Non-GAAP Financial Information” section herein for explanations of these financial measures. | |||
Expected results and estimates may be impacted by factors outside of the Company’s control, and actual results may be materially different from this guidance. See “Cautionary Statement Concerning Forward-Looking Statements” herein.
Results :
Revenue: | |||||||||||
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Revenue: | |||||||||||
Americas | $ 346,519 | $ 319,020 | 8.6 % | $ 987,790 | $ 802,524 | 23.1 % | |||||
Europe | 239,197 | 262,568 | (8.9) % | 736,616 | 659,216 | 11.7 % | |||||
Other | 17,191 | 14,828 | 15.9 % | 47,569 | 36,666 | 29.7 % | |||||
Consolidated Revenue | $ 602,907 | $ 596,416 | 1.1 % | $ 1,771,975 | $ 1,498,406 | 18.3 % | |||||
Revenue excluding movements in FX1: | |||||||||||
Americas | $ 346,519 | $ 319,020 | 8.6 % | $ 987,790 | $ 802,524 | 23.1 % | |||||
Europe | 278,678 | 262,568 | 6.1 % | 824,681 | 659,216 | 25.1 % | |||||
Other | 17,666 | 14,828 | 19.1 % | 48,324 | 36,666 | 31.8 % | |||||
Consolidated Revenue excluding | $ 642,863 | $ 596,416 | 7.8 % | $ 1,860,795 | $ 1,498,406 | 24.2 % | |||||
1 See “Supplemental Disclosure Regarding Segment Adjusted EBITDA and Non-GAAP Financial Information” section herein for an explanation of this financial measure. |
Revenue for the third quarter of 2022, as compared to the same period of 2021:
Americas: Revenue up 8.6%:
- Revenue up across all major product categories, most notably airport displays
- Airport display revenue up 45.0% to $62.3 million from $43.0 million
- Digital revenue up 16.6% to $133.7 million from $114.6 million
- Digital revenue from billboards, street furniture and spectaculars up 6.8% to $97.6 million from $91.4 million
- Digital revenue from transit, including airports, up 55.2% to $36.1 million from $23.3 million
- National sales comprised 39.7% and 37.1% of total revenue for the three months ended September 30, 2022 and 2021, respectively
Europe: Revenue down 8.9%; excluding movements in FX, up 6.1%:
- Revenue growth driven by transit and street furniture displays
- Digital revenue up 4.8% to $97.3 million from $92.9 million; digital revenue, excluding movements in FX, up 22.4% to $113.7 million
- Revenue up in many countries, most notably Sweden, driven by continued recovery and growth following the lifting of COVID-19 restrictions; partially offset by decrease in France, which rebounded strongly from COVID-19 in prior year
Other: Revenue up 15.9%; excluding movements in FX, up 19.1%:
- Continued recovery from COVID-19 in Latin America
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Source: Clear Channel Outdoor
