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Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today reported financial results for the third quarter ended September 30, 2012.
“We continue to make progress under CEO William Eccleshare’s unified leadership in optimizing our U.S. operations to maximize our revenue and profit potential,” said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. “At the same time, we are taking the necessary steps to adjust to the new economic realities in Europe with a reduced cost structure to drive future profitability while continuing to seek promising opportunities in other international markets.”
"The business continues to operate in challenging market conditions, particularly in Europe, and we have taken significant measures to reduce costs in response to this market uncertainty,” Chief Executive Officer William Eccleshare said. “However, we are seeing consistent growth in both Asia-Pacific and Latin America and our U.K. business received a boost over the summer due to the Olympics. As we are refining our vision of how to transform our U.S. business, we are continuing to invest in new digital solutions for advertisers – such as surpassing the milestone of 1,000 digital billboards in the U.S. and launching our new digital TV network for airports called ClearVision during the quarter.”
Third Quarter 2012 Results
The Company reported revenues of $731 million in the third quarter of 2012, a decrease from the $748 million in the same period of 2011. Excluding the effects of movements in foreign exchange rates,
1 revenues grew $8 million, or 1%.
Americas revenues rose $8 million, or 2%, compared to the same quarter of 2011, driven mainly by revenue growth from bulletins due to the continued deployment of digital displays and increased airport revenues on higher occupancy by the Company’s largest U.S. airport customers.
International revenues decreased $1 million compared to the third quarter of 2011, excluding the effects of movements in foreign exchange rates. Excluding a $6 million revenue reduction due to the divestiture of two businesses during the quarter, as well as the effects of movements in foreign exchange rates, revenues increased $5 million, or 1%. Revenue growth resulted mainly from higher street furniture revenues, particularly in Australia and China, and the Summer Olympic Games in the U.K., partially offset by revenue declines from advertising weakness in certain European countries. On a reported basis, revenues decreased $25 million, or 6%, due to unfavorable movements in foreign exchange rates.
1 totaled $179 million in the third quarter of 2012 compared to $189 million in the same quarter of 2011, reflecting a decrease of 5%. OIBDAN declined 4% during the third quarter of 2012, excluding the negative impact of movements in foreign exchange rates. In the third quarter of 2012, the Company incurred $10 million of expenses related to investments in its strategic revenue and cost initiatives to attract additional advertising dollars to the business and improve operating efficiencies in light of the current economic environment.
Net income attributable to the Company totaled $17 million, or $0.05 per diluted share, in the third quarter of 2012. This compares to net income attributable to the Company of $3 million, or $0.01 per diluted share, in the same period of 2011.