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Jun 30, 2022
Outfront Media Q2 2022 Earnings Report
Reported strong second quarter with revenue growth and increased Adjusted OIBDA.
Key Takeaways
OUTFRONT Media Inc. reported a strong Q2 2022 with a 32% increase in revenue, driven mainly by billboard pricing and transit improvements. The company's operating income was $79.9 million and net income attributable to OUTFRONT Media Inc. was $48.0 million.
Revenues increased by 32% to $450.2 million compared to the same prior-year period.
Operating income reached $79.9 million.
Net income attributable to OUTFRONT Media Inc. was $48.0 million.
Adjusted OIBDA increased by 79% to $125.3 million.
Outfront Media
Outfront Media
Outfront Media Revenue by Segment
Revenue by Segment
Billboard Revenue
CapyFin.comTransit Revenue
CapyFin.com Forward Guidance
The company expects continued attractive growth throughout the second half of 2022, despite some current macroeconomic uncertainty.
Positive Outlook
- Business remains healthy.
- Continued attractive growth expected throughout the second half of 2022.
- Total revenues in 2022 are expected to surpass pre-COVID-19 pandemic levels based on strong performance in total billboard revenues.
- Adjusted OIBDA is expected to incrementally improve in 2022, driven by improvements in transit and other business, and be comparable to pre-COVID-19 pandemic levels.
- Billboard property lease expenses, such as rental expenses, and posting, maintenance and other expenses, as a percentage of revenues, are expected to be slightly lower than pre-COVID-19 pandemic levels.
Challenges Ahead
- Some current macroeconomic uncertainty.
- Transit businesses are still experiencing the significant impact of the ongoing novel coronavirus (“COVID-19”) pandemic.
- Total transit and other revenues in the U.S. Media segment are expected to incrementally improve in 2022, but still remain materially below pre-COVID-19 pandemic levels until 2023.
- Total expenses are expected to increase in 2022 as compared to 2021, and exceed pre-COVID-19 pandemic levels.
- Transit franchise expenses, such as transit franchise payments, as a percentage of revenues, are expected to decrease in 2022 as compared to 2021, but be higher in 2022 than pre-COVID-19 pandemic levels, primarily due to the guaranteed minimum annual payment amounts owed to the MTA and other transit franchise partners as total transit and other revenues incrementally improve in the future.
Revenue & Expenses
Visualization of income flow from segment revenue to net income