CC Outdoor Holdings Reports Q4 and Full Year Results

Gail Chiasson, North American Editor

“As the economic recovery in the U.S. and around the world gains momentum, CEO William Eccleshare and his team have put Clear Channel Outdoor in the best possible position to partner effectively with local, national and global advertisers,” said Bob Pittman, executive chairman of Clear Channel Outdoor Holdings Inc., in reporting full year (ending Dec. 31/13) and Q4 results on Friday, Feb. 21/14.

“Just as critical to our success is our leadership in innovative digital technologies that are transforming the industry’s engagement with increasingly mobile consumers. We have never been better prepared to help advertisers meet their marketing needs and make the most of the growing out-of-home trend worldwide.”

CC Outdoor’s consolidated revenues were flat at $2.95 billion for the full year 2013 compared to 2012, driven by growth at Americas that was offset by a decline at International. Excluding the effects of movements in foreign exchange rates and divestiture of businesses during the third quarter of 2012,1,3 revenues were up less than 1%.

Americas revenues rose $11 million, or 1%, on a reported basis compared to 2012. New contracts drove higher occupancy and rates in traditional bulletins and posters, while higher revenues in digital displays were due to higher occupancy and capacity. Partially offsetting the growth of digital was the absence of revenue from the ruling.77 digital boards in Los Angeles that were turned off due to a court ruling.

International revenues increased $3 million, or less than 1%, after adjusting for divestitures during the third quarter of 2012 ($20 million revenue reduction) and a $5 million increase from movements in foreign exchange rates. Revenue growth in emerging markets, including China and Brazil, as well as strong performance in the UK, were offset in part by declines in developed markets, some of which faced challenging economic conditions, such as France. On a reported basis, revenues decreased $12 million, or 1%, compared to 2012.

“With our global scale and efficiencies, we identified and developed best-in-class new technologies and groundbreaking initiatives in 2013 and continued to build strong relationships with advertisers globally,” said William Eccleshare, CEO. “Our digital and interactive outdoor assets offer a depth of consumer engagement never before available, and we are helping our advertisers realize the increasing value of reaching the mobile consumer.

“Our focus this year is on future growth and profitability, especially in our digital displays, emerging markets and our national advertising business in the U.S. We continue to drive strong growth in many U.S. markets, as well as China, Singapore, Brazil, Chile and other emerging markets, and we are boosting our share of the European advertising markets.”

For the fourth quarter, consolidated revenues totaled $806 million, a $3 million increase compared to the fourth quarter of 2012.

Americas revenues decreased $6 million, or 2%, driven by lower revenues at airports due to lost contracts and the absence of revenue from the 77 digital boards in Los Angeles that were turned off due to a court ruling. Partially offsetting these declines were higher occupancy and rate on traditional bulletins, as well as growth from rising rates, capacity and occupancy of digital bulletins in CC Outdoor’s markets.

International revenues rose $9 million, or 2%. Revenue growth in emerging markets, including China, was partly offset by declines in developed markets, again some of which faced challenging economic conditions, such as France.

The Company’s consolidated net income totaled $19 million in the fourth quarter of 2013 compared to a consolidated net loss of $139 million in the same period of 2012. This was due primarily to the loss on extinguishment of debt in 2012 that did not recur in 2013, higher operating income and lower interest expense.

The Company’s recent key highlights include, in the Americas:

  • Installing 67 new digital billboards for a year-end total of 1,148 across 37 U.S. markets;
  • Putting up three new full-motion digital billboards at the highly trafficked Penn Plaza, across from Madison Square Garden in New York City;
  • Launching 75 advertising displays and two digital screens in Boston’s South Station and becoming the new operator and media provider for the San Diego Metropolitan System’s 400-plus bus shelters;
  • Partnering with Washington State Municipalities and Seahawks sponsors to pay tribute to Super Bowl-winning Seattle Seahawks by dedicating 20 billboards within two miles of CenturyLink Field for two weeks to Seahawks’ fans as ‘the best in the NFL’;
  • Launching Clear Channel Airports’ new indoor digital media network for Philadelphia International Airport; renewing our multi-year deal with Signature Flight Support, the exclusive media provider for the company’s 62 private aviation terminals in the U.S; and announcing the first 24-hour-a-day airport radio station – AIR Chicago – from Clear Channel Airports and iHeartRadio for O’Hare and Midway travelers;
  • Naming Kenneth Shapiro, an eighteen-year veteran of Turner Broadcasting Sales, as Executive Vice President of Sales for Clear Channel Outdoor – North America, responsible for sales to national clients in the U.S. and maximizing the results of all local selling in the U.S. and Canada.

And on the international scene:

  • Contracting with the City of Rio de Janeiro in Brazil to convert static panels to digital on 70 clocks situated along the iconic beaches of Copacabana, Ipanema, Leblon and other high traffic spots in Rio City. These premium sites will be ready for advertisers for the 2014 FIFA World Cup Brazil;
  • Becoming the exclusive operator of advertising space at Rome’s two airports to reach the 41 million air passengers traveling through Italy’s capital annually with new technology and state-of-the-art digital panels;
  • Winning a five-year contract with Sydney Trains to roll out one of the largest digital out-of-home infrastructures in the Sydney outdoor market, including an extensive network planned across premium concourse precincts at Sydney’s Central Business District key railway stations.

One Response to “CC Outdoor Holdings Reports Q4 and Full Year Results”

  1. Matthew Olivieri Says:

    Great to see a strong focus on more digital for the future!

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