Q2, 2015 @OutfrontMedia Results
Gail Chiasson, North American Editor
OUTFRONT Media, New York, last week reported revenues of $384.7 million, up 15.0% on a reported basis; an adjusted OIBDA of $119.1 million, up 8.0% on a reported basis; and net income of $22.2 million for its second quarter results ending June 30, 2015.
“Our business generated 2.8% organic year-over-year revenue growth led by particularly strong transit results, which continued to benefit from improved national advertising,” said Jeremy Male, OUTFRONT Media chairman and CEO.
“We are focused on improving the performance of our domestic billboard business, and sustaining transit’s outstanding performance across the U.S. We’re also pleased to have extended the New York City subway advertising contract, and are excited by our new digital hardware and software solutions to drive future benefits for our clients, transit partners, and shareholders.”
Reported billboard revenues of $280.1 million increased $35.9 million, or 14.7%, due to acquisitions and increased revenues from digital, partially offset by foreign currency exchange losses. On an organic basis, billboard revenues were down 1.0% compared to the second quarter of 2014 due to lower billboard results in the U.S.
Reported transit and other revenues of $104.6 million increased $14.4 million, or 16.0%, due to stronger market conditions in local and national advertising, as well as acquisitions. On an organic basis, transit and other revenues increased 12.7% over the second quarter of 2014.
In the US alone, reported revenues of $346.1 million increased $55.0 million, or 18.9%, for the second quarter of 2015 as compared to the same prior-year period. On an organic basis, revenues were $297.0 million for the second quarter of 2015, an increase of 2.8% from the same prior-year period, reflecting growth in digital revenues, and strong local and national transit advertising sales. On an organic basis, billboard revenues were down 1.7% due to proactive organizational changes in certain markets. On an organic basis, transit and other revenues were up 13.8% compared to the second quarter of 2014 driven by increased advertiser demand for transit displays. Reported Adjusted OIBDA of $121.0 million increased $14.6 million, or 13.7%, primarily due to acquisitions, partially offset by a $0.6 million increase in strategic business development expenses and $0.1 million of incremental stand-alone costs.
On the international front, reported revenues of $38.6 million decreased $4.7 million, or 10.9%, in the second quarter of 2015 as compared to the same prior-year period due to the impact of foreign currency exchange. Organic revenues increased $0.9 million, or 2.4%, led by solid growth in Mexico. On an organic basis, billboard revenues were up 3.4% and transit and other revenues were down 3.6% compared to the second quarter of 2014. Reported Adjusted OIBDA decreased $2.0 million to $7.5 million in the second quarter of 2015 as compared to the same prior-year period due to product and geographic mix and the impact of foreign currency exchange rates.
Jeremy Male will be keynoting The DailyDOOH Investor Conference Wednesday, November 4, 2015, as part of New York Digital Signage Week.
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