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Associated Press
05-08-2025
- Business
- Associated Press
Clear Channel Outdoor Holdings, Inc. Reports Results for the Second Quarter of 2025
SAN ANTONIO, Aug. 5, 2025 /PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE: CCO ) (the 'Company') today reported financial results for the quarter ended June 30, 2025. 'We delivered solid financial results within our guidance range during the second quarter, while making good progress executing on our strategic plan,' said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. 'Our second quarter consolidated revenue increased 7.0%, reflecting growth from our America and Airports segments. In addition, our outlook remains positive for the second half of the year, attesting to the strength of out-of-home advertising and our leadership in driving the digital transformation of our industry. Building on our momentum, after the quarter ended, we refinanced and extended approximately 40% of our debt maturities in two tranches to 2031 and 2033, with our nearest maturity now in 2028. 'Our transition into a U.S.-focused organization has allowed us to direct our attention to maximizing our investments in our digital footprint, data analytics and sales force to scale our business in an efficient manner, with the goal of increasing our cash generation. We continue to make inroads with a broader range of advertisers as we demonstrate our ability to plan and measure client campaigns that deliver attractive ROI relative to other advertising platforms. This is a central part of our value proposition, combined with our scale in what has become an increasingly fragmented advertising market. 'Looking ahead, our business remains healthy, and we are on track to deliver on our financial goals. Nearly 90% of our Q3 2025 revenue guidance is under contract, and we believe we remain well-positioned to generate strong growth in our cash flow this year, with a significant compound increase in AFFO. We are committed to utilizing our cash to strengthen our balance sheet and reduce our interest expense while continuing to strategically invest as we work to build shareholder value.' Financial Highlights: Financial highlights for the second quarter of 2025 as compared to the same period of 2024: International Sales Processes: On May 6, 2025, we entered into a definitive agreement to sell our business in Brazil to Publibanca Brasil S.A., an affiliate of Eletromidia S.A., for a purchase price of approximately $14.7 million based on the prevailing exchange rate as of June 30, 2025, subject to certain customary adjustments. The transaction is expected to close later this year, pending regulatory approval and the satisfaction of other customary closing conditions. The sales process for our remaining discontinued operations in Spain is ongoing. Both of these businesses, along with the international businesses previously sold, are classified as discontinued operations. Debt Activity: In the second quarter of 2025, we repurchased $229.7 million aggregate principal amount of outstanding senior notes in open market transactions at a discount, contributing to a year-to-date debt reduction of approximately $605 million. We also amended our credit agreements, extending the maturity dates of our credit facilities to 2030 and adjusting facility commitments. On August 4, 2025, we closed a $2.05 billion private offering of senior secured notes. We used the net proceeds from the offering, together with cash on hand, to fund the redemption of $2.0 billion of our existing senior secured notes due 2027 and 2028, further extending our debt maturity profile. Refer to the 'Liquidity and Financial Position' section of this earnings release for further detail. Guidance: Third Quarter 2025 Outlook: We expect the following results for the third quarter of 2025: Full-Year 2025 Outlook: We have updated our full-year 2025 guidance from the ranges previously issued on May 1, 2025, except for Adjusted EBITDA, which remains unchanged: Expected results and estimates may be impacted by factors outside of the Company's control, and actual results may be materially different from this guidance. See 'Cautionary Statement Concerning Forward-Looking Statements' for further information. Results: Revenue: Revenue for the second quarter of 2025, compared to the same period in 2024: America: Revenue up 4.4%: Airports: Revenue up 15.6%: Direct Operating and SG&A Expenses1: Direct operating and SG&A expenses for the second quarter of 2025, compared to the same period in 2024: America: Direct operating and SG&A expenses up 7.5%: Airports: Direct operating and SG&A expenses up 12.2%: Segment Adjusted EBITDA1: Corporate Expenses: Corporate expenses decreased 8.6%, and Adjusted Corporate expenses decreased 12.6% for the second quarter of 2025, compared to the same period in 2024. The decreases were primarily driven by: Capital Expenditures: Markets and Displays: As of June 30, 2025, we operated more than 61,400 print and digital out-of-home advertising displays and had a presence in 81 Designated Market Areas ('DMAs') in the U.S., including 43 of the top 50 U.S. markets. Liquidity and Financial Position: Cash and Cash Equivalents: As of June 30, 2025, we had $147.1 million of cash and cash equivalents, including $8.5 million held by discontinued operations (Spain and Brazil) and $4.1 million held by continuing operations subsidiaries outside the U.S., primarily in the Caribbean. The following table summarizes our consolidated cash flows for the six months ended June 30, 2025, including both continuing and discontinued operations: Debt: In the second quarter of 2025, we repurchased $95.7 million of our 7.750% Senior Notes due 2028 and $134.1 million of our 7.500% Senior Notes due 2029 in open market transactions for a total cash payment of $203.4 million, including accrued interest of $4.0 million and related fees. The repurchased notes are currently held by the Company and have not been canceled. In June 2025, we amended our Receivables-Based Credit Agreement and Senior Secured Credit Agreement, extending the maturity dates of the related credit facilities to June 12, 2030. As part of the amendments: On August 4, 2025, we closed a private offering of $1,150.0 million aggregate principal amount of 7.125% Senior Secured Notes due 2031 and $900.0 million aggregate principal amount of 7.500% Senior Secured Notes due 2033. We used the net proceeds from the offering, together with cash on hand, to fund the full redemption of our 5.125% Senior Secured Notes due 2027 and 9.000% Senior Secured Notes due 2028, in aggregate principal amounts of $1,250.0 million and $750.0 million, respectively. As a result, the indentures governing the redeemed notes were satisfied and discharged. Following the completion of the second-quarter senior notes repurchases and August 2025 refinancing, we expect cash interest payments of approximately $184 million for the remainder of 2025 and approximately $400 million in 2026, assuming no further prepayments, refinancings, new debt issuances or additional repurchases. Following the redemption of the 5.125% and 9.000% Senior Secured Notes, our next scheduled debt maturity will be in April 2028, when $899.3 million aggregate principal amount of our 7.750% Senior Notes becomes due. For additional details on our outstanding debt balance, please refer to Table 3 in this earnings release. TABLE 1 - Financial Highlights of Clear Channel Outdoor Holdings, Inc. and its Subsidiaries: Weighted Average Shares Outstanding TABLE 2 - Selected Balance Sheet Information: TABLE 3 - Total Debt: Supplemental Disclosures: Reportable Segments and Segment Adjusted EBITDA The Company operates two reportable segments: America (U.S. operations excluding airports) and Airports (U.S. and Caribbean airport operations), with remaining operations in Singapore reported as 'Other.' The Company's European and Latin American businesses are classified as discontinued operations; therefore, their results are excluded from this earnings release, which only reflects continuing operations for all periods presented. Segment Adjusted EBITDA is the profitability metric reported to the Company's chief operating decision maker (the Company's President and Chief Executive Officer) for purposes of allocating resources and assessing segment performance. Segment Adjusted EBITDA is a GAAP financial measure calculated as Revenue less Direct operating expenses and SG&A expenses, excluding restructuring and other costs. Restructuring and other costs include costs associated with cost-saving initiatives such as severance, consulting and termination costs and other special costs. Non-GAAP Financial Information This earnings release includes information that does not conform to U.S. generally accepted accounting principles ('GAAP'), including Adjusted EBITDA, Adjusted Corporate expenses, Funds From Operations ('FFO') and Adjusted Funds From Operations ('AFFO'). The Company believes these non-GAAP measures provide investors with useful insights into its operating performance, particularly when comparing to other out-of-home advertisers, and they are widely used by companies in this industry. Please refer to the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures below. The Company defines and uses these non-GAAP measures as follows: These non-GAAP financial measures should not be considered in isolation or as substitutes for the most directly comparable GAAP measures as an indicator of operating performance or the Company's ability to fund its cash needs. In addition, these measures may not be comparable to similarly named measures presented by other companies. See reconciliations of income (loss) from continuing operations to Adjusted EBITDA, corporate expenses to Adjusted Corporate expenses, and consolidated net income (loss) to FFO and AFFO in the tables below. This data should be read in conjunction with the Company's most recent Annual Report on Form 10-K, Form 10-Qs and Form 8-Ks, available on the Investor Relations page of the Company's website at Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA Reconciliation of Corporate Expenses to Adjusted Corporate Expenses Reconciliation of Consolidated Net Income (Loss) to FFO and AFFO Conference Call The Company will host a conference call to discuss these results on August 5, 2025, at 8:30 a.m. Eastern Time. A live audio webcast, along with details on how to register, will be available in the 'Events & Presentations' section of the Company's investor website ( ) or at the following link: A replay of the webcast will be available following the call in the same section of the investor website. About Clear Channel Outdoor Holdings, Inc. Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of driving innovation in the out-of-home advertising industry. Our dynamic advertising platform is broadening the pool of advertisers using our medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of our diverse portfolio of assets, we connect advertisers with millions of consumers every month. For further information, please contact: Jason King SVP, Corporate Communications & Marketing (212) 812-0064 [email protected] Cautionary Statement Concerning Forward-Looking Statements Certain statements in this earnings release are considered 'forward-looking statements' under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Clear Channel Outdoor Holdings, Inc. and its subsidiaries (the 'Company') to differ materially from any future results, performance, achievements, guidance, goals and/or targets expressed or implied by such forward-looking statements. Words such as 'guidance,' 'believe,' 'expect,' 'anticipate,' 'estimate,' 'forecast,' 'goals,' 'targets' and similar terms are used to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements, including, but not limited to: our guidance, outlook, mid-term or long-term forecasts, goals or targets; our business plans and strategies and the expected benefits of business initiatives; the effects of tariffs and views on the macroeconomic environment; expectations regarding the sales of our businesses in Brazil and Spain, including the expected proceeds; expectations about certain markets and potential improvements; industry and market trends; expectations surrounding our cash flow; our ability to retain new and existing customers and maintain bookings; the anticipated effects of our new senior secured notes offering and notes redemptions; and our liquidity. These statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond our control and difficult to predict. Various risks that could cause actual results to differ from those expressed by the forward-looking statements included in this earnings release include, but are not limited to: continued economic uncertainty, an economic slowdown or a recession, including as a result of increased and proposed tariffs, retaliatory trade regulations and policies, and uncertainty in the financial and capital markets; our ability to generate enough cash to service our debt obligations and fund our operations, business strategy and capital expenditures; the impact of our substantial indebtedness, including the effect of leverage on our financial position and earnings; the impact of the issuance of the new senior secured notes and notes redemptions on our interest expense, liquidity and debt maturity profile; the difficulty, cost and time required to implement our strategy, and the fact that we may not realize the anticipated benefits therefrom; volatility of our stock price; our ability to continue to comply with the applicable listing standards of the New York Stock Exchange, including the minimum bid price requirement, and any subsequent failure to timely resume compliance within any applicable cure period; changes in laws or regulations and tax structures; our ability to obtain and renew key contracts with municipalities, transit authorities and private landlords; we face intense competition and our market share is subject to change; regulations and consumer concerns regarding privacy, digital services, data protection and artificial intelligence; breaches of our information security; failure to accurately estimate industry and Company forecasts and to maintain bookings; restrictions on out-of-home advertising of certain products; environmental, health, safety and land use laws and regulations; the impact of the potential sales of our businesses in Brazil and Spain; the impact of the recent dispositions of certain of our businesses in Europe and Latin America, as well as other strategic transactions or acquisitions; third-party claims of intellectual property infringement, misappropriation or other violation against us or our suppliers; the impacts on our stock price as a result of future sales of common stock, or the perception thereof, and dilution resulting from additional capital raised through the sale of common stock or other equity-linked instruments; restrictions in our debt agreements that limit operational flexibility; challenges regarding our use of artificial intelligence to enhance operational efficiency and support decision-making across key areas of our business; the effect of credit ratings downgrades; our reliance on senior management and key personnel; continued scrutiny and shifting expectations from government regulators, municipalities, investors, lenders, customers, activists and other stakeholders; and other factors set forth in our SEC filings. You should not place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this earnings release. For a more comprehensive discussion of risks, see the 'Item 1A. Risk Factors' section of the Company's reports filed with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The Company does not undertake any obligation to update or revise any forward-looking statements because of new information, future events or otherwise. View original content to download multimedia: SOURCE Clear Channel Outdoor Holdings, Inc.
Khaleej Times
03-07-2025
- Business
- Khaleej Times
Rotana Signs and Modern Advertising alliance win largest-ever outdoor media project in Makkah
Rotana Signs, the exclusive representative of the alliance between Modern Advertising Co. and Rotana Media Services announced that the alliance has officially won the contract to launch the largest out-of-home advertising project in the Holy City of Makkah. The contract was signed with Al Balad Al Ameen, the investment arm of Makkah Municipality. This landmark 10-year concession, valued at over SAR 600 million, marks a major advancement in Makkah's advertising landscape that will see more than 600 premium advertising sites installed across the city. The advertising network will feature a diverse mix of various digital, static, and transit formats, positioned and strategically located to serve the growing demand behind advertiser presence all while maintaining the city's unique cultural and spiritual identity. This project is a key component of the broader urban development unfolding across Makkah, aligned with Saudi Arabia's Vision 2030 objectives of economic diversification, urban enhancement, and enriching the publics experiences. While preserving Makkah's inherent identity, the alliance will roll out state-of-the-art advertising structures that elevate the city's visual environment without compromising its heritage. Hassan Zaini, deputy CEO of sales of Rotana Signs, commented: 'Makkah holds a profound significance as a symbol of spirituality, culture, and humanity. The alliance is committed to ensuring that the visual experience for residents, visitors and pilgrims honors the city. This project is not just about installing media assets, but rather about crafting an integrated visual journey that complements the city's identity with elegance and innovation.' He added: 'This project represents an active contribution to Vision 2030, helping elevate and grow part of the non-oil sector while creating sustainable value for the city. In collaboration with Al Balad Al Ameen and Makkah Municipality, we are committed to developing a smart and efficient advertising ecosystem that benefits the city, and the millions of visitors welcomed each year.' Zaini further emphasised Rotana Signs' strategic approach of creating an end-to-end advertising experience that accompanies pilgrims and visitors throughout their entire journey. Starting from their arrival at Jeddah's Hajj Terminal, through to the Haramain Highspeed Railway, and into Makkah and Madinah, brands have a growing opportunity to engage with audiences at every stage with consistent, impactful messaging across multiple touchpoints. The alliance views the Makkah out-of-home project not only as a privileged responsibility but also as a critical step in its long-term growth strategy. As part of its expanding national footprint and growing track record, it aims to introduce innovative advertising solutions across Saudi Arabia's cities.
