Q1/16 @OutfrontMediaUS Results
Gail Chiasson, North American Editor
New York-based OUTFRONT Media reported its Q1Revenues of for the quarter ended March 31, 2016, which showed revenues of $348.4 million, up 1.3% on a reported basis, compared to the same prior-year period.
“As expected, our first quarter revenues grew 3.0% organically, reflecting the third consecutive quarter of improved U.S. billboard performance and continued expansion in transit,” said Jeremy Male, chairman and CEO of OUTFRONT Media. “Our US- focused asset mix was also enhanced through both acquisitions and the recent divestiture of our Latin America business. With a positive outlook for the industry and our business in 2016, together with our continued investment in new products for the future, we look forward to increasing returns for our shareholders in 2016 and beyond.”
In Q1, reported billboard revenues of $250.4 million increased $3.5 million, or 1.4%, due primarily to an increase in average revenue per display and increased revenues from the conversion of static billboards to digital, partially offset by foreign currency exchange losses and the disposition of billboard advertising structures in the second quarter of 2015. On an organic basis, billboard revenues were up 3.3% compared to the same prior-year period due to higher U.S. billboard results offset by flat International results.
Reported transit and other revenues of $98.0 million increased $1.0 million, or 1.0%, due to stronger U.S. market conditions in local advertising, partially offset by the loss of the New York City phone kiosk contract in the first quarter of 2015 and lower advertising revenues in the first quarter of 2016 from major sports entertainment events. On an organic basis, transit and other revenues increased 2.2% over the same prior-year period. Reported Adjusted OIBDA of $88.1 million increased $1.1 million, or 1.3%.
In the US market, Reported revenues of $322.9 million increased $9.0 million, or 2.9%, for the first quarter of 2016 as compared to the same prior-year period due to an increase in average revenue per display and growth attributable to conversion of static billboards to digital, partially offset by the impact of the disposition of billboard advertising structures in the second quarter of 2015, the loss of the New York City phone kiosk contract in the first quarter of 2015, and lower advertising revenue in the first quarter of 2016 from major sports entertainment events. On an organic basis, revenues were $321.3 million for the first quarter of 2016, an increase of 3.3% from the same prior-year period. On an organic basis, billboard revenues were up 3.6% due to an increase in average revenue per display (yield), and growth attributable to conversion of static billboards to digital. On an organic basis, transit and other revenues were up 2.6% compared to the same prior-year period driven by increased advertiser demand for transit displays as reflected by an increase in average revenue per display.Reported Adjusted OIBDA of $97.7 million increased $3.3 million, or 3.5% compared to the same prior year period.
On the international scene, reported revenues of $25.5 million decreased $4.5 million, or 15.0%, in the first quarter of 2016 as compared to the same prior-year period due primarily to the impact of foreign currency exchange. Organic revenues decreased $0.3 million, or 1.2%, due to declines in Latin America and Canada. On an organic basis, billboard revenues were flat and transit and other revenues were down 8.1% compared to the same prior-year period. Reported Adjusted OIBDA was a loss of $0.6 million in the first quarter of 2016 compared to income of $0.1 million in the same prior-year period.
On April 1, 2016, OUTFRONT completed the sale of its equity interests in certain of our subsidiaries which held all of the assets of its outdoor advertising business in Latin America. It recorded a loss on real estate assets held for sale of approximately $1.3 million in the three months ended March 31, 2016 on the Consolidated Statement of Operations
Follow DailyDOOH