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Jun 30, 2020
Clear Channel Q2 2020 Earnings Report
Clear Channel Outdoor's performance was severely impacted by COVID-19, with revenue declining across all segments, while the company focused on cost savings and liquidity measures.
Key Takeaways
Clear Channel Outdoor Holdings, Inc. reported a significant decline in revenue and profitability for Q2 2020 due to the extensive impact of the COVID-19 pandemic on the global advertising market. The company focused on enhancing liquidity through cost-saving measures, the sale of Clear Media, and a successful notes offering. While the company is seeing a rebound in mobility and traffic levels, uncertainty remains regarding the timing of a sustained economic recovery.
Revenue decreased by 54.9% year-over-year to $314.9 million due to COVID-19 impacts.
Americas revenue decreased by 39.0% year-over-year to $199.7 million.
Europe revenue decreased by 63.0% year-over-year to $107.3 million.
The company implemented cost-saving measures exceeding $125 million in Q2 and increased liquidity through asset sales and debt offerings.
Revenue by Segment
Forward Guidance
The company is seeing sequential growth in customer bookings in Q3, but current bookings remain significantly below historic norms. The rebounds could slow down or be reversed if there is a resurgence in COVID-19 cases. The company expects to implement further cost savings initiatives throughout the remainder of the year.
Positive Outlook
- Increase in mobility, traffic and other out-of-home metrics
- Sequential growth in customer bookings
- Strong rebound in bookings in Europe
- Positive rebounding in Americas
- Further cost savings initiatives to be implemented
Challenges Ahead
- Unclear when a sustainable economic recovery will take hold
- Current bookings remain significantly below historic norms
- Latin America business bookings continue to be severely constrained
- Resurgence in COVID-19 cases could slow down or reverse rebounds
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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