Operating Income Tumbles At Clear Channel Outdoor

Clear Channel Outdoor Holdings, Inc Monday reported financial results for the fourth quarter and year ended December 31, 2017.

“We continue to invest in our global network of innovative products to help brands more effectively connect with broad audiences and target specific customers,” said Bob Pittman, Chairman and Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “We also continue to expand our digital footprint and programmatic ad-buying offerings, as well as enhance our in-depth data analytics and attribution capabilities, to maximize the reach and value of our out-of-home digital platform.”

Rich Bressler, Chief Financial Officer of Clear Channel Outdoor Holdings, Inc. said: “Consolidated revenue increased in the fourth quarter and was down for the full year. Operating income was down in the fourth quarter and full year. We remain focused on balancing financial discipline with the investments we are making in digital, data, programmatic and attribution to strengthen our business.”

The Company’s key financial highlights for 4Q 2017 include:

• Consolidated revenue increased 0.9%. Consolidated revenue decreased 0.3%, after adjusting for a $26.7 million impact from movements in foreign exchange rates and the $18.2 million impact of the sale of certain businesses.
• Americas revenues decreased $11.0 million, or 3.2%. Revenues decreased $5.0 million, or 1.5%, after adjusting for a $1.0 million impact from movements in foreign exchange rates and a $7.0 million impact from the sale of our business in Canada.
• International revenues increased $17.6 million, or 4.7%. Revenues increased $3.1 million, or 0.9%, after adjusting for a $25.7 million impact from movements in foreign exchange rates and a $11.2 million impact from the sale of our business in Australia.
• Operating income decreased 64.3% to $89.6 million
• OIBDAN decreased 11.8%. OIBDAN decreased 12.3%, excluding the impact from movements in foreign exchange rates and the impact of the sale of certain businesses.

The Company’s key financial highlights for 2017 include:

• Consolidated revenue decreased 3.6%. Consolidated revenue increased 1.2%, after adjusting for a $8.6 million impact from movements in foreign exchange rates and the $135.7 million impact of the markets and businesses sold in 2016.
• Americas outdoor revenues decreased $22.1 million, or 1.7%. Revenues decreased $7.9 million, or 0.6%, after adjusting for a $3.8 million impact from movements in foreign exchange rates and a $17.9 million impact from the non-strategic markets sold in the first quarter of 2016.
• International outdoor revenues decreased $75.5 million, or 5.4%. Revenues increased $37.4 million, or 2.9%, after adjusting for a $4.9 million impact from movements in foreign exchange rates and a $117.8 million impact from the sale of our businesses in Turkey in the second quarter of 2016 and Australia in the fourth quarter of 2016.
• Operating income decreased 63.5% to $232.4 million.
• OIBDAN decreased 15.3% and decreased 12.1%, excluding the impact from movements in foreign exchange rates and the impact of the markets and businesses sold in 2016.