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Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) today reported financial results for the second quarter ended June 30, 2013.
“We delivered solid growth this quarter, with strong performance in the Americas and International’s results clearly reflecting our investments in emerging markets,” said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. “CEO William Eccleshare and his team are continuing to benefit from refocusing our U.S. sales force and our International resources. At the same time, we are building out our digital assets around the world to make it even easier for advertisers to create compelling campaigns that capitalize fully on the effectiveness of these new technologies and our out-of-home networks.”
“We are pursuing growth opportunities globally, working with our advertising partners to maximize the impact of their campaigns by helping them take the utmost advantage of the interactivity and immediacy of our growing base of digital displays,” said Chief Executive Officer William Eccleshare. “Financially, our U.S. business performed well in the second quarter, as did our emerging markets, and we’re making progress in Europe, where the economic environment is still challenging. We continue to drive top line results across our asset portfolio, and our close focus on expenses demonstrated the attractive operating leverage in our business this quarter.”
Second Quarter 2013 Results
Total revenues for the three months ended June 30, 2013 increased 2% over the same period in 2012, adjusting for the effects of foreign exchange movements
1, as well as a $9 million impact from the divestiture of businesses during the third quarter of 2012. On a reported basis, revenues of $767 million for the three months ended June 30, 2013 were up 1% from the same period in 2012.
Americas revenues rose $14 million, or 4%, on a reported basis and 5% adjusted for movements in foreign exchange rates, driven by higher occupancy and capacity on digital bulletins, higher occupancy and rate on traditional bulletins, strong growth in posters, and increased revenue at airports.
International revenues declined $1 million, or less than 1%, after adjusting for a $9 million revenue reduction due to the divestiture of businesses during the third quarter of 2012 and a $2 million increase from movements in foreign exchange rates. Strong revenue growth in emerging markets was offset by continued pressures in certain developed markets, where economic conditions remain challenging. On a reported basis, revenues decreased $9 million, or 2%, compared to the same period of 2012.
The Company’s OIBDAN
1 increased 3% to $203 million in the three months ended June 30, 2013 compared to $196 million in the same period of 2012. Excluding minimal effects of movements in foreign exchange rates and a $2 million reduction due to the divestiture of businesses during the third quarter of 2012, OIBDAN rose 4% to $203 million. OIBDAN in the second quarter of 2012 reflected a favorable court ruling of $8 million and also included $8 million of operating and corporate expenses related to the Company’s strategic revenue and cost initiatives to attract additional advertising dollars to the business and improve operating efficiencies. OIBDAN for the three months ended June 30, 2012 included $10 million in expenses related to strategic revenue and cost initiatives, as well as $5 million in legal and other costs primarily related to Brazil.
The Company’s net income was $9 million for the three months ended June 30, 2013 compared to a net loss of $8 million in 2012 due primarily to higher operating income and lower interest expense due to debt refinancing, offset by higher income tax expense.