Yahoo Finance

• Consolidated Revenue: $334 million, a 2.2% increase.

• Loss from Continuing Operations: $55 million.

• Adjusted EBITDA: $79 million, down 12.5%.

• AFFO: Negative $23 million.

• America Revenue: $254 million, up 1.8%.

• Digital Revenue (Americas): Up 6.4%.

• Local Sales (Americas): Up 2.2%.

• National Sales (Americas): Up 1% on a comparable basis.

• Segment Adjusted EBITDA (Americas): $88 million, down 8%.

• Airports Revenue: $80 million, up 4%.

• Digital Revenue (Airports): Up 15.6%.

• Segment Adjusted EBITDA (Airports): $14 million, down 25%.

• CapEx: $13 million, a 17% increase.

• Liquidity: $568 million, including $401 million of cash.

• Annualized Interest Expense Reduction: $37 million.

• Q2 2025 Revenue Guidance: $393 million to $408 million, a 4% to 8% increase.

• Full Year AFFO Guidance: $80 million to $90 million, a 36% to 54% increase over the prior year.

• Warning! GuruFocus has detected 4 Warning Signs with CCO.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Clear Channel Outdoor Holdings Inc (NYSE:CCO) reported a consolidated revenue growth of 2.2% for Q1 2025, in line with guidance.

• The company successfully reduced annual corporate expenses by approximately $35 million, with plans to further reduce costs.

• CCO has begun to meaningfully reduce interest expenses, saving $37 million annually through debt repayments and bond repurchases.

• The company is seeing increased interest from national advertisers in San Francisco, with bookings up double digits, indicating a recovery in this key market.

• AI is being leveraged to improve productivity and customer targeting, contributing to potential margin improvements and increased ad revenue.

Negative Points

• Adjusted EBITDA for Q1 2025 was down 12.5%, partly due to a decline in airport rate abatements and increased expenses from the MTA Roadside billboard contract.

• AFFO was negative $23 million for the quarter, although this was within expectations.

• The company faced challenging revenue comparisons in February due to one less selling day and the Super Bowl not being in a roadside market.

• Print revenues in both America and Airport segments were down year-on-year, raising concerns about potential cannibalization by digital revenues.

• The company is still managing transition services agreements, which require maintaining higher levels of various services, impacting cost reduction efforts.

Q & A Highlights

Q: Can you provide more details on your visibility into the second half of the year and opportunities for corporate expense reductions? A: We have good visibility into the year, with strong progress in markets like San Francisco and across various verticals such as media, entertainment, and auto insurance. Both national and local outlooks are positive. For cost reductions, we are working on transition services agreements and aim to have a zero-based budget view for the U.S. by our Investor Day in September.