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Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) today reported financial results for the fourth quarter and full year ended December 31, 2013.
“As the economic recovery in the U.S. and around the world gains momentum, CEO William Eccleshare and his team have put Clear Channel Outdoor in the best possible position to partner effectively with local, national and global advertisers,” said Bob Pittman, Executive Chairman of Clear Channel Outdoor Holdings, Inc. “Just as critical to our success is our leadership in innovative digital technologies that are transforming the industry’s engagement with increasingly mobile consumers. We have never been better prepared to help advertisers meet their marketing needs and make the most of the growing out-of-home trend worldwide.”
“With our global scale and efficiencies, we identified and developed best-in-class new technologies and groundbreaking initiatives in 2013 and continued to build strong relationships with advertisers globally,” said Chief Executive Officer William Eccleshare. “Our digital and interactive outdoor assets offer a depth of consumer engagement never before available, and we are helping our advertisers realize the increasing value of reaching the mobile consumer. Our focus this year is on future growth and profitability, especially in our digital displays, emerging markets and our national advertising business in the U.S. We continue to drive strong growth in many U.S. markets, as well as China, Singapore, Brazil, Chile and other emerging markets, and we are boosting our share of the European advertising markets.”
Full Year 2013 Results
Consolidated revenues were flat at $2.95 billion for the full year 2013 compared to 2012, driven by growth at Americas that was offset by a decline at International. Excluding the effects of movements in foreign exchange rates and divestiture of businesses during the third quarter of 2012,
1,3 revenues were up less than 1%.
Americas revenues rose $11 million, or 1%, on a reported basis compared to 2012. New contracts drove higher occupancy and rates in traditional bulletins and posters, while higher revenues in digital displays were due to higher occupancy and capacity. Partially offsetting the growth of digital was the absence of revenue from the 77 digital boards in Los Angeles that were turned off due to a court ruling.
International revenues increased $3 million, or less than 1%, after adjusting for divestitures during the third quarter of 2012 ($20 million revenue reduction) and a $5 million increase from movements in foreign exchange rates. Revenue growth in emerging markets, including China and Brazil, as well as strong performance in the UK, were offset in part by declines in developed markets, some of which faced challenging economic conditions, such as France. On a reported basis, revenues decreased $12 million, or 1%, compared to 2012.
The Company’s OIBDAN
1 grew 4% to $691 million in 2013 compared to $664 million in 2012 on a reported basis. 2013 OIBDAN increased $33 million, excluding the effects of movements in foreign exchange rates and divestiture of businesses. Included in the 2013 OIBDAN of $691 million were $36 million of operating and corporate expenses related to the Company’s strategic revenue and efficiency initiatives to attract additional advertising dollars to the business and improve operating efficiencies, as well as $25 million of litigation expenses. OIBDAN for 2012 reflected $44 million of such expenses, as well as $12 million of litigation expenses and $27 million of legal and other costs in Latin America, which did not recur in 2013.
The Company’s consolidated EBITDA, as defined under the CCWH Senior Notes indenture, was $780 million in 2013, down 1% from 2012.