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Mar 31, 2020
Clear Channel Q1 2020 Earnings Report
Clear Channel Outdoor Holdings, Inc. reported financial results that were significantly impacted by the COVID-19 pandemic.
Key Takeaways
Clear Channel Outdoor Holdings reported a challenging Q1 2020, significantly impacted by the COVID-19 pandemic. Despite a strong performance in the Americas segment, the company experienced overall revenue decline due to the pandemic's effect, particularly in Europe and Other regions. The company is implementing cost-saving measures and focusing on liquidity to mitigate the impact.
Q1 earnings were significantly impacted by the COVID-19 pandemic.
Americas segment saw revenue growth of 8.5% and Segment Adjusted EBITDA up 18.5%.
Europe revenue decreased by 18.9% year-over-year.
Company is implementing cost savings initiatives and exploring opportunistic transactions to strengthen the balance sheet.
Revenue by Segment
Forward Guidance
The company anticipates significant adverse effects on the results of operations throughout the business during the second quarter as more customers defer advertising buying decisions and reduce marketing spend.
Positive Outlook
- Negotiations with landlords to align fixed site lease expenses with revenue during the economic downturn.
- Savings from lower variable compensation expense, temporary salary reductions, reduced hours for hourly employees, hiring freezes and furloughs.
- Reducing discretionary expenses.
- Deferring discretionary capital expenditures.
- Exploring options to defer our committed capital expenditures.
Challenges Ahead
- Shelter in place protocols have limited the behavior and movement of consumers and target audiences, making it difficult to predict and plan advertising campaigns.
- Receiving an unprecedented level of requests to defer or cancel current contracts as customers seek to conserve cash.
- Customers are deferring buying decisions and reducing their marketing spend.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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