OUTFRONT Media’s Revenues Up 0.9% in Q4, Up 11.8% For Full Year 2015
Gail Chiasson, North American Editor
New York-based OUTFRONT Media Inc. has reported results for its fourth quarter and full year ended December 31, 2015.
“Our fourth quarter delivered 4.3% organic revenue growth, a good finish to a solid year and a positive indicator of our portfolio’s attractiveness to both local and national advertisers,” said Jeremy Male, chairman and CEO. “We are confident our advertiser solutions can generate solid growth in AFFO for shareholders and, looking to the future, we’re excited by the opportunity to drive our top line further through continued investments in new products, data, and technology.”
Fourth Quarter 2015 Results, Consolidated, showed reported revenues of $398.5 million increased $3.5 million, or 0.9%, for the fourth quarter of 2015 as compared to the same prior-year period. On an organic basis, revenues of $397.7 million for the fourth quarter of 2015 were up 4.3% compared to the same prior-year period.
Reported billboard revenues of $279.0 million decreased $3.5 million, or 1.2%, due to foreign currency exchange losses, offset by increased revenues from digital. On an organic basis, billboard revenues were up 1.2% compared to the same prior-year period due to higher U.S. billboard results, offset by lower International results.
Reported transit and other revenues of $119.5 million increased $7.0 million, or 6.2%, due to stronger U.S. and international market conditions. On an organic basis, transit and other revenues increased 12.4% over the same prior-year period.
Total Operating expenses of $218.6 million grew $4.4 million, or 2.1%, primarily as a result of higher transit franchise expenses driven by higher transit revenues and higher billboard lease costs driven by growth in larger markets with revenue share leases, partially offset by the impact of foreign exchange rates.
For the United States alone, reported revenues of $366.4 million increased $10 million, or 2.8%, in the fourth quarter of 2015 as compared to the same prior-year period. On an organic basis, revenues were $365.6 million for the fourth quarter of 2015, an increase of 4.7% from the same prior-year period, reflecting growth in digital revenues and both national and local advertising sales. On an organic basis, billboard revenues were up 1.4% due to improved national advertising sales. On an organic basis, transit and other revenues were up 12.8% compared to the same prior-year period driven by increased local advertiser demand for transit displays. Reported Adjusted OIBDA of $122.6 million decreased $0.6 million, or 0.5%, in the fourth quarter of 2015 compared to the same prior-year period, primarily due to a $3.2 million increase in strategic business development expenses and higher transit revenues.
On the international scene, reported revenues of $32.1 million decreased $6.5 million, or 16.8%, in the fourth quarter of 2015 as compared to the same prior-year period due to the impact of foreign currency exchange. Organic revenues increased $0.1 million, or 0.3%, in the fourth quarter of 2015 as compared to the same prior-year period, due to slightly higher revenues in Latin America offset by slightly lower revenues in Canada. On an organic basis, billboard revenues were down 0.4% and transit and other revenues were up 4.5% compared to the same prior-year period. Reported Adjusted OIBDA decreased $3.1 million to $4.3 million in the fourth quarter of 2015 as compared to the same prior-year period due to geographic mix and the impact of foreign currency exchange rates.
Full Year 2015 Results, consolidated, saw that reported revenues of $1,513.8 million increased $160.0 million, or 11.8%, for the year ended December 31, 2015 as compared to the prior year. On an organic basis, revenues of $1,315.3 million for the year ended December 31, 2015 were up 3.8% compared to the prior year.
Reported billboard revenues of $1,084.3 million increased $112.8 million, or 11.6%, due to acquisitions and increased revenues from digital, partially offset by foreign currency exchange losses. On an organic basis, billboard revenues were up 0.5% compared to the prior year due to higher U.S. and International results.
Reported transit and other revenues of $429.5 million increased $47.2 million, or 12.3%, due to stronger U.S. and International market conditions, as well as acquisitions. On an organic basis, transit and other revenues increased 11.9% over the prior year.
In the US, reported revenues of $1,380.3 million increased $181.5 million, or 15.1%, for the year ended December 31, 2015 as compared to the prior year. On an organic basis, revenues were $1,181.8 million for the year ended December 31, 2015, an increase of 4.1% from the prior year, reflecting growth in digital revenues, and strong national and local advertising sales. On an organic basis, billboard revenues were up 0.4% compared to the prior year, primarily due to improved national advertising sales. On an organic basis, transit and other revenues were up 12.4% compared to the prior year driven by increased local and national advertiser demand for transit displays. Reported Adjusted OIBDA of $459.6 million increased $43.4 million, or 10.4%, in the year ended December 31, 2015 as compared to the same prior-year period, primarily due to acquisitions, partially offset by a $5.7 million increase in strategic business development expenses.
And on an international basis, reported revenues of $133.5 million decreased $21.5 million, or 13.9%, in the year ended December 31, 2015 as compared to the prior year due to the impact of foreign currency exchange. Organic revenues increased $1.9 million, or 1.4%, due primarily to Mexico and Canada. On an organic basis, billboard revenues were up 1.5% and transit and other revenues were up 1.1% compared to the prior year. Reported Adjusted OIBDA decreased $8.5 million to $15.8 million in the year ended December 31, 2015 as compared to the prior year due to geographic mix and the impact of foreign currency exchange rates.
Corporate costs, excluding stock-based compensation, restructuring charges, and acquisition costs, increased $10.7 million to $37.8 million in the year ended December 31, 2015 compared to prior year, including $6.3 million of incremental stand-alone costs, $5.2 million of legal expenses, a majority of which are expected to be non-recurring, and a $4.1 million increase in strategic development expenses, partially offset by decreases in compensation expense.
In connection with the Company entering into an agreement with JCDecaux on October 31, 2015 to sell its Latin America business, the Company is required to measure the related assets held for sale at the lower of their carrying value, including unrecognized foreign currency translation adjustment losses, or fair value less cost to sell. This resulted in a non-cash loss on real estate assets held for sale of $103.6 million. The assets have been classified as assets held for sale on the balance sheet and the foreign currency translation adjustment loss is included in accumulated other comprehensive loss.
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