San Antonio, Texas-based Clear Channel Outdoor Holdings Inc. [1] has reported financial results for the second quarter ended June 30, 2015, showing that consolidated revenues increased 1% to $792 million, excluding the unfavorable impact from movements in foreign exchange rates.
[2]On a reported basis, consolidated revenues decreased 7% to $723 million.
Americas outdoor revenues increased $2 million, or 1%, excluding the unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues decreased $3 million, or 1%.
International outdoor revenues increased $9 million, or 2%, excluding the unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues decreased $55 million, or 13%.
“We continue to provide advertisers and agencies with opportunities to use out-of-home advertising to test creative boundaries and create an even deeper sense of engagement with consumers, both in our Americas and International outdoor business,” said Bob Pittman, chairman and CEO, Clear Channel Outdoor Holdings Inc. “Outdoor provides tremendous flexibility for advertisers to coordinate their out-of-home spend with real-time events and product launches throughout the year and our team is leveraging our vast portfolio of outdoor assets and products to meet our clients’ needs. We continue to focus on financial performance and are pleased with our revenue growth across the board this quarter.”
“We continue to focus on execution and are pleased to deliver another quarter of growth in both top and bottom line,” said Scott Wells, CEO , Clear Channel Outdoor Americas. “Our local and digital advertising business in the Americas remains strong and revitalizing our national business remains a priority. We continue to build on the power of outdoor, as well as leverage our powerful portfolio of outdoor assets to engage with agencies, brands and advertisers across our markets.”
“We delivered another quarter of top line growth, with continued momentum in Europe and Australia,” said William Eccleshare, chairman and CEO, Clear Channel International. “At the recent Cannes Lions Advertising Festival [3], we had an outstanding display of our digital and mobile capabilities, showcasing work by leading global brands and agencies. Our world class inventory and growing digital platform enables us to create powerful solutions for advertisers and reach consumers in innovative and creative ways.”
During Q2, the company:
- Installed 12 new digital billboards in North America for an end of quarter total of 1,205 across 38 markets, and 261 new digital displays in international markets for an end of quarter total of over 5,000 displays;
- Showcased the combination of out-of-home and mobile advertising at Cannes Lions International Festival of Creativity, working with award winning creative agencies, media agencies, charities, digital production houses, brands and digital out-of-home specialists, to create and curate a program of interactive content to demonstrate the impact of digital out-of-home advertising;
- Launched Clear Channel Airports’ ClearVision TV Network across all concourses at the Denver International Airport. [4] The custom network – DEN-TV – showcases content from local partners to give the airport’s more than 53 million annual travelers an in-depth look at everything happening in Denver;
- Streamed live the June 10th ceremony with Prince Harry to kick off the 100-day countdown to the 2015 Rugby World Cup [5] though Twitter’s Periscope. The ceremony was shown on the iconic One Piccadilly screen of Storm, Clear Channel UK’s super premium brand.
The Company’s consolidated net income totaled $9 million in the second quarter of 2015 compared to consolidated net income of $60 million in the same period of 2014. The decrease was primarily due to income tax expense recorded in the second quarter 2015, compared to income tax benefit recorded in the same period in 2014.
Growth in Americas outdoor revenues was driven primarily by digital billboards revenue, as well as higher revenues from CCO’s Spectacolor [6] business, partially offset by lower advertising revenues from static bulletins and posters.
Growth in International outdoor revenues was driven primarily by growth in Europe and Australia.
Operating expenses increased $10 million, or 3%, during Q2, 2015, as compared to Q2, 2014, after adjusting for a $53 million impact from movements in foreign exchange rates. Operating expenses increased primarily due to higher variable costs and compensation expense.
OIBDAN decreased $1 million, or 1%, during the second quarter 2015 as compared to the second quarter 2014 after adjusting for an $11 million unfavorable impact from movements in foreign exchange rates. On a reported basis, OIBDAN was down $12 million, or 13%, compared to the prior year period.
For the six months ended June 30, 2015, cash flow provided by operating activities was $54 million, cash flow used for investing activities totaled $90 million, cash flow used by financing activities was $17 million, and there was $4 million impact from movements in foreign exchange rates on cash. The net decrease in cash was $56 million.
Capital expenditures for the six months ended June 30, 2015 were approximately $90 million compared to $93 million for the same period in 2014.