Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today reported financial results for the fourth quarter and full year ended December 31, 2012.
“Under CEO William Eccleshare’s leadership, our Outdoor business continues to use its global scale, efficiency, and creativity to connect brands with people,” said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. “Heading into 2013, we are building on the strengths in our Americas’ business – especially in digital displays, airports and national advertising. Internationally, we are realigning the business in Europe to the realities of the market, while still seeing growth in Asia and Latin America. Looking ahead, we will keep investing strategically across the business to drive future growth and profitability. ”
“Clear Channel Outdoor continues to make important strides in its digital transformation,” said Chief Executive Officer William Eccleshare. “Through several innovative programs, we’re expanding the creative richness of out-of-home advertising and helping our advertising clients reach people on the street with greater engagement and immediacy. During this past year, we put in place the leadership and structure to streamline our business, and exported successful strategies on a global basis. Despite a very difficult economic environment, we’re confident that we’re well positioned to drive greater share for our outdoor assets.”
Fourth Quarter 2012 Results
Total revenues decreased $13 million, or 2% year over year, to $803 million in the fourth quarter of 2012 compared to $816 million in the same period of 2011. Excluding the effects of movements in foreign exchange rates
, revenues declined $7 million, or 1%.
- Americas revenues rose $5 million, or 1% adjusted for movements in foreign exchange rates, driven by higher digital capacity and increased revenue at airports. On a reported basis, revenues grew $5 million, or 2%.
- International revenues decreased $3 million, or less than 1%, adjusting for a $9 million revenue reduction due to the divestiture of two businesses during the third quarter of 2012 and a $6 million reduction from movements in foreign exchange rates. Stronger economic conditions in emerging markets and certain other geographies were offset by weakened economic conditions in other regions, particularly in Europe. On a reported basis, revenues decreased $18 million, or 4%.
The Company’s OIBDAN
declined to $205 million, or 10%, in the fourth quarter of 2012 compared to $229 million in the same quarter of 2011. Excluding the effects of movements in foreign exchange rates, and a $2 million reduction due to the divestiture of two businesses during the third quarter of 2012, OIBDAN totaled $207 million, down $20 million, or 9%. Included in the 2012 fourth quarter OIBDAN were $18 million of operating and corporate expenses associated with the Company’s strategic revenue and cost initiatives to attract additional advertising dollars to the business and improve operating efficiencies. The fourth quarter of 2011 included $7 million of such expenses. Also reducing OIBDAN in the fourth quarter of 2012 were $3 million of litigation expenses and $7 million of legal and other costs in Latin America.
The Company’s net loss was $148 million in the fourth quarter of 2012 compared to net income of $23 million in the same period of 2011. Fourth quarter 2012 results included a $221 pre-tax loss on extinguishment of debt related to refinancing activities.