Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) today reported financial results for the third quarter ended September 30, 2013.
“Every day, we become more excited about the potential of our outdoor business due to our new and expanded relationships with advertisers, as well as advanced technologies and the evolving trend of people spending more time out-of-home than they ever have before,” said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. “We’re pleased with the business’s core metrics and prospects for future growth, while we continue to adjust – and invest in – our global portfolio to increase exposure to faster-growing regions. Two recent campaigns to launch new albums for Paul McCartney and Lady Gaga underscored the power of our global reach and ability to deliver for clients across our multi-platform assets, something that only Clear Channel can do.”
“There’s incredible innovation in the out-of-home advertising sector to reach mobile consumers in that important moment before – and during - purchase, and Clear Channel is leading it,” said Chief Executive Officer William Eccleshare. “We are a true mobile media company working at our collaborative best to deliver audiences with the right demographics for clients. Outdoor is becoming the ‘fourth screen’ that makes our clients’ other campaigns more effective and efficient than ever. During the quarter, we saw improving trends internationally, especially in our emerging markets, such as China, Singapore, Brazil and Chile, as well as in Australia and the UK. We’re confident that we’re taking the right steps – including increased digital investment – to position us for out-of-home’s future growth.”
Third Quarter 2013 Results
Total revenues for the three months ended September 30, 2013 decreased less than 1% over the same period in 2012, adjusting for the effects of foreign exchange movements
, as well as a $3 million impact from the divestiture of businesses during the third quarter of 2012. On a reported basis, revenues of $723 million for the quarter were down 1% from the same period in 2012.
- Americas revenues decreased $4 million, or 1%, on a reported basis and $3 million, or less than 1% adjusted for movements in foreign exchange rates, driven by declining revenues at airports due to lost contracts and from the absence of our digital billboard revenue in the City of Los Angeles. Partially offsetting these declines were higher occupancy and rate on bulletins, as well as strong growth from rising rate, capacity and occupancy of digital bulletins in other markets.
- International revenues decreased $3 million, or less than 1%, after adjusting for a $3 million revenue reduction due to the divestiture of businesses during the third quarter of 2012 and a $1 million increase from movements in foreign exchange rates. Strong revenue growth in emerging markets was offset by revenue declines in developed markets where, despite challenging economic conditions, certain countries performed well. On a reported basis, revenues decreased $4 million, or 1%, compared to the same period of 2012.
The Company’s OIBDAN
declined 6% to $167 million in the three months ended September 30, 2013 versus $179 million in the same period of 2012. Excluding a $2 million reduction from movements in foreign exchange rates and a less than $1 million reduction due to the divestiture of businesses during the third quarter of 2012, OIBDAN decreased 5% to $169 million. OIBDAN in the quarter included $9 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, compared to $10 million in the same period in 2012. OIBDAN in the third quarter of 2013 also included $5 million of legal and other costs versus $2 million in the same period of 2012.
The Company’s net income was $4 million for the three months ended September 30, 2013 compared to income of $17 million in 2012, due primarily to the gain on the sale of our international neon business in August 2012, offset by lower interest expense and income taxes.