Clear Channel Outdoor Revenue Up 33% in 3Q 2021

“We delivered very strong results during the third quarter and we entered the fourth quarter with continued business momentum,” was how Clear Channel Outdoor worldwide CEO William Eccleshare summarized  3rd quarter 2021 financials.  Here are the highlights of the 3rd quarter 2021 earnings release, earnings presentation and conference call.

  • Revenue grew 33% to $596 million for the 3 months ended September 30, 2021.  Americas revenue (e.g. US and the carribean) was up 43%.  European revenue was up 21%.  This chart shows that all of the segments of the company’s Americas are growing.
  • Cashflow (Adjusted EBIDTA) increased from $30 million during the third quarter of 2020 to $136 million during the 3rd quarter of 2021.
  • Capital expenditures totaled $33 million for the third quarter of 2021.  The company added 17 digital billboards in Americas and 314 digital displays in Europe.
  • The company projects fourth quarter 2021 revenue of $715-740 million which will be up approximately 35% over fourth quarter 2020.
  • The company repaid it’s $130 million revolving line of credit.
William Eccleshare, Worldwide CEO, Clear Channel Outdoor Holdings

Eccleshare on asset sales

We will continue to evaluate disposition opportunities in line with our specific goals and in the best interest of our shareholders…

Eccleshare on what’s up and what’s down

We still haven’t fully rebounded in a few markets in California including San Francisco although LA which is out largest market is now above 2019…in addition to LA, New York, Miami and Dallas are also exceeding 2019 levels with Houston and Boston close behind.  I’d also highlight a promising rebound in airports…

CFO Brian Coleman on US out of home acquisitions

The guidance also includes a near term acquisition pipeline of approximately $20-25 million, that we could potentially close by year end, that represents small, selective, tuck-in billboard acquisitions in the Americas.

Billboard Insider:  We can’t think of a better time than the next 6 months for Clear Channel Outdoor to sell or spin off assets to reduce debt.  Revenues are coming back.  Private equity firms like outdoor.  Out of home stock multiples are up.  Spin out the Europe as a standalone IPO…sell Europe to JCDecaux…spin off the the US as a standalone out of home company.  Lots of options.

The market liked the news.  Clear Chanel Outdoor rose 5.5% on a day when Lamar rose 0.4% the S&P 500 dropped 0.5% and OUTFRONT dropped 0.3%.

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