“I am more confident than ever in the promising opportunity we have here,” said Rich Bressler, President and Chief Financial Officer. “We’re continuing to focus on building strong relationships with top local and national advertisers to drive revenue growth, while maintaining our unparalleled relationship with the consumer and keeping our cost structure in line. This quarter’s performance also underscores our continued investments on both the revenue and cost sides, with improved results at Media+Entertainment partially offset by more challenging conditions in certain regions outside the U.S. Our extensive capital market activity over the past twelve months has given us much more flexibility. I am proud to see both optimism and a sense of urgency across the entire company, as we continue to bring in the strongest people in the media industry to help us succeed.”
Third Quarter 2013 Results
Consolidated revenues totaled $1.59 billion, consistent with the third quarter of 2012. Excluding the effects of movements in foreign exchange rates 1, as well as a $3 million impact from the divestiture of businesses during the third quarter of 2012, revenues were up $3 million, or less than 1%.
- Media+Entertainment revenues increased $25 million, or 3%, driven primarily by local, national and digital sales, as well as an increase in revenues from the traffic business due to improved sales strategies and expanded services including weather.
- Americas outdoor 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 outdoor 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 1 decreased 8%, or $39 million, to $441 million for the three months ended September 30, 2013 compared to $480 million for the same period of 2012. Included in both the 2013 and 2012 third 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 its businesses and improve operating efficiencies. Third quarter 2013 OIBDAN also included $8 million related to executive transition costs and $11 million related to legal and other costs compared to $2 million in the same period of 2012. Excluding a $2 million reduction from the effects of movements in foreign exchange rates and minimal reduction due to the divestiture of businesses during the third quarter of 2012, OIBDAN declined $37 million, or 8%, to $442 million.The Company’s consolidated net loss was $102 million in the third quarter of 2013 compared to a consolidated net loss of $51 million in the same period of 2012 due primarily to a gain on the sale of our international neon business in August 2012, lower operating income, and higher interest expense.