Clear Channel Outdoor Holdings, Inc. Reports Results for the First Quarter of 2025

About this update from Clear Channel Outdoor Holdings, Inc.

SAN ANTONIO , May 1, 2025 /PRNewswire/ -- Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the "Company") today reported financial results for the quarter ended March 31, 2025. "Our first quarter consolidated revenue increased 2.2%, in line with our guidance, reflecting growth from our America and Airports segments," said Scott Wells , Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. "We are seeing healthy demand across the majority of our markets in the current quarter and have now booked the majority of our 2025 revenue guidance for the year, with a solid pipeline of business in place. The investments we have made in our technology and sales force allow us to benefit from a more diverse revenue profile and have expanded the number of ways we have to grow our business. "We continue to make progress executing our strategic roadmap and are excited about our transition to a U.S.-focused business. Now that the majority of our international asset sales have closed, we believe that we have improved our financial resiliency and reduced our operational risk considerably. We have begun reducing debt, resulting in meaningful decreases in interest expense, and expect to continue to focus on the most advantageous debt in our capital structure, as permitted under our debt agreements. Additionally, we have successfully eliminated approximately $35 million in annual corporate expenses and expect to achieve further reductions in the future. "Going forward, we are focused on elevating the performance of our higher-margin U.S. assets. We are a leader in the innovation and digital transformation of our industry, and our ability to reach and target audiences on the move is strengthening. On top of our progress in streamlining our business and reducing debt, we remain on track with regard to our annual guidance and expect to deliver growth in our consolidated revenues and cash flow in the year ahead, with significant compound growth in AFFO." Financial Highlights: Financial highlights for the first quarter of 2025 as compared to the same period of 2024: International Sales Processes, Dispositions and Use of Proceeds: On February 5, 2025 , we sold our businesses in Mexico , Peru and Chile to Global Media US LLC in a simultaneous sign-and-close transaction for an aggregate purchase price of $34 .0 million, subject to certain customary adjustments. On March 31, 2025 , we sold our Europe-North segment businesses to Bauer Radio Limited, a subsidiary of Bauer Media Group, for an aggregate purchase price of $625 .0 million, subject to certain customary adjustments. Also on March 31, 2025 , we used a portion of the net proceeds from this sale to fully prepay the $375.0 million aggregate principal amount of the outstanding term loans (the "CCIBV Term Loan Facility") of Clear Channel International B.V. ("CCIBV"), an indirect wholly-owned subsidiary of the Company, along with accrued interest. We expect to prioritize using the remaining net proceeds or cash on hand to retire the most advantageous debt in our capital structure, as permitted under our debt agreements. The sales processes for our remaining discontinued operations in Spain and Brazil are ongoing. While we cannot guarantee the completion of any transaction, we currently expect the sales to occur within the next year, subject to the satisfaction of regulatory approvals and other closing conditions, if applicable. All of our European and Latin American businesses, including Spain and Brazil , are classified as discontinued operations. Unless otherwise noted, the discussion in this earnings release focuses on continuing operations and excludes discontinued operations. Guidance: Our expectations for the second quarter of 2025 are as follows: Our expectations for the full year of 2025 remain unchanged from the guidance provided in our earnings release on February 24, 2025, except for loss from continuing operations and Adjusted Funds from Operations ("AFFO"), which have improved 2 . Our updated full-year expectations are as follows: 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 first quarter of 2025, compared to the same period in 2024: America :  Revenue up 1.8%: Airports :  Revenue up 4.0%: Direct Operating and SG&A Expenses 1 : Direct operating and SG&A expenses for the first 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 13.3%: Corporate Expenses: Corporate expenses for the first quarter of 2025 decreased 33.8% compared to the same period in 2024, primarily due to $9 .9 million in insurance proceeds received during the quarter, related to the ongoing recovery of certain amounts previously incurred in connection with a resolved legal matter. Income (Loss): Adjusted EBITDA 1 : AFFO 1 : Capital Expenditures: Markets and Displays: As of March 31, 2025, we operated more than 61,400 print and digital out-of-home advertising displays and had a presence in 80 Designated Market Areas ("DMAs") in the U.S., including 42 of the top 50 U.S. markets. Liquidity and Financial Position: Cash and Cash Equivalents: As of March 31, 2025, we had $401 .3 million of cash and cash equivalents, including $5.5 million held by discontinued operations ( Spain and Brazil ) and $2.9 million held by continuing operations subsidiaries outside the U.S., primarily in the Caribbean . The following table summarizes our consolidated cash flows for the three ended March 31, 2025, including both continuing and discontinued operations: Debt: On March 31, 2025 , we used a portion of the net proceeds from the sale of our Europe-North segment businesses to fully prepay the $375 .0 million aggregate principal amount of the CCIBV Term Loan Facility and $11 .9 million of accrued interest. Upon repayment, CCIBV and the guarantors under the related credit agreement, and all collateral granted as security thereunder, were released, and the credit agreement was terminated. We expect to prioritize using the remaining net proceeds or cash on hand to retire the most advantageous debt in our capital structure, as permitted under our debt agreements. At our discretion, we may redeem or repurchase portions of our outstanding debt prior to maturity in accordance with the terms of our debt agreements. In April 2025 , we repurchased $54 .0 million principal amount of our 7.750% Senior Notes due 2028 and $65 .8 million principal amount of our 7.500% Senior Notes due 2029 in the open market at a discount, for a total cash payment of $99 .5 million, excluding accrued interest and related fees. The repurchased notes are currently held by the Company and have not been canceled. Following the prepayment of the CCIBV Term Loan Facility on March 31, 2025 , and taking into account our April 2025 notes repurchases, we expect cash interest payments to be approximately $313 million for the remainder of 2025 and $381 million in 2026, assuming no further refinancings, new debt issuances or additional repurchases. Our next debt maturity is in August 2027 , when the $1 .25 billion aggregate principal amount of our 5.125% Senior Secured 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 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 investor.clearchannel.com. Reconciliation of 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 Reconciliation of Loss from Continuing Operations Guidance to Adjusted EBITDA Guidance Reconciliation of Loss from Continuing Operations Guidance to AFFO Guidance Conference Call The Company will host a conference call to discuss these results on May 1, 2025 at 8:30 a.m. Eastern Time . The conference call number is 866-424-3432 (U.S. callers) or +1 215-268-9862 (international callers). A live audio webcast of the conference call will be available on the "Events & Presentations" section of the Company's investor website (investor.clearchannel.com). A replay of the webcast will be available after the live conference call on the "Events & Presentations" section of the Company's 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: Investors: Eileen McLaughlin Vice President - Investor Relations (646) 355-2399 [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 from business initiatives; the effects of tariffs and views on the macroeconomic environment; our expectations about the use of proceeds from, and benefits of, the sales of certain of our European and Latin American businesses, including corporate expense reduction and interest expense reduction; expectations regarding the sales of our businesses in Spain and Brazil ; management's ability to navigate the current macroeconomic environment; expectations about certain markets and potential improvements; industry and market trends; our ability to use artificial intelligence in our business; our ability to retain both new and existing customers and maintain bookings; 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 our leverage on our financial position and earnings; 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; 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; changes in laws or regulations; 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 Spain and Brazil ; 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 contained in our debt agreements that limit our flexibility in operating our business; 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: https://www.prnewswire.com/news-releases/clear-channel-outdoor-holdings-inc-reports-results-for-the-first-quarter-of-2025-302443404.html SOURCE Clear Channel Outdoor Holdings, Inc.

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