Clear Channel Outdoor Holdings Inc. has reported financial results for the third quarter ended September 30, 2013, showing that revenues of $723 million for the quarter were down 1% from the same period in 2012.
In the Americas, revenues decreased $4 million, or 1%, on a reported basis and $3 million, or less than 1% adjusted for movements in foreign exchange rates, driven by declining revenues at airports due to lost contracts and from the absence of Clear Channel’s digital billboard revenue in the City of Los Angeles. Partially offsetting these declines were higher occupancy and rate on bulletins, as well as strong growth from the rising rate, capacity and occupancy of digital bulletins in other markets.
International revenues decreased $3 million, or less than 1%, after adjusting for a $3 million revenue reduction due to the divestiture of businesses during the third quarter of 2012 and a $1 million increase from movements in foreign exchange rates. Strong revenue growth in emerging markets was offset by revenue declines in developed markets where, despite challenging economic conditions, certain countries performed well.
“Every day, we become more excited about the potential of our outdoor business due to our new and expanded relationships with advertisers, as well as advanced technologies and the evolving trend of people spending more time out-of-home than they ever have before,” said Bob Pittman, executive chairman of Clear Channel Outdoor Holdings on release of the financial statement. “We’re pleased with the business’s core metrics and prospects for future growth, while we continue to adjust – and invest in – our global portfolio to increase exposure to faster-growing regions. Two recent campaigns to launch new albums for Paul McCartney and Lady Gaga underscored the power of our global reach and ability to deliver for clients across our multi-platform assets, something that only Clear Channel can do.”
“There’s incredible innovation in the out-of-home advertising sector to reach mobile consumers in that important moment before – and during – purchase, and Clear Channel is leading it,” said William Eccleshare. CEO. “We are a true mobile media company working at our collaborative best to deliver audiences with the right demographics for clients. Outdoor is becoming the ‘fourth screen’ that makes our clients’ other campaigns more effective and efficient than ever. During the quarter, we saw improving trends internationally, especially in our emerging markets, such as China, Singapore, Brazil and Chile, as well as in Australia and the UK. We’re confident that we’re taking the right steps – including increased digital investment – to position us for out-of-home’s future growth.”
The Company’s recent key highlights include:
- Partnering with Lady Gaga and Clear Channel Media+Entertainment for the exclusive global unveiling of the cover artwork for her new album, ARTPOP – through a first-ever, out-of-home campaign that sequenced a stepped reveal of advertiser creative in unison on Clear Channel Outdoor’s international network of digital billboards and screens. Also streamed live onwww.ladygaga.com, direct from CCO’s Spectacolor billboard in Times Square, the reveal showcased the global scale, reach and impact of our digital inventory across 18 cities worldwide.
- Coordinating with Clear Channel Media+Entertainment to launch Paul McCartney’s latest album, NEW, on Clear Channel Outdoor’s digital network in 30 major cities across 18 countries through a pre-event tease of the iHeartRadio Album Release Party – utilizing six different creative executions, all designed to drive listeners to the party and #whatsnewpaul.
- Introducing the new ‘Storm’ brand in the UK – a client-branded, out-of-home digital network that delivers completely customized solutions in extremely short time frames – reaching premium audiences with advanced digital displays at Cromwell Road, Chiswick Towers and Coventry House at Piccadilly Circus.
- Creating an integrated social media plan with Coca-Cola for its “Share a Coke” campaign that allowed users – across several international markets – to see their name integrated into the iconic Coke logo on a Clear Channel digital display by posting their name on Facebook.
- Installing 26 new digital bulletins for a total of 1,081 across 38 U.S. markets.
- Expanding digital displays in Latin America by 50%, with 45 displays – including 15 in Chile, 16 in Mexico, and 14 in Peru.
- Appointing Walker Jacobs as Chief Revenue Officer and President of Sales for Clear Channel Outdoor – North America, where he will have direct responsibility for the national advertising sales, sales marketing, revenue management, and sales operations teams. Jacobs joins from Time Warner’s Turner Broadcasting System, where he was Executive Vice President of Turner Digital.