Jun 30, 2023

Outfront Media Q2 2023 Earnings Report

Reported second quarter 2023 results with revenues of $468.8 million and an operating loss of $438.2 million.

Key Takeaways

OUTFRONT Media Inc. reported a 4.1% increase in revenues to $468.8 million for the second quarter of 2023. However, the company experienced a significant operating loss of $438.2 million, which includes a $511.4 million impairment on U.S. Transit and Other assets, and a net loss of $478.9 million.

Second quarter revenues grew 4%, driven by higher billboard yields and growth from local and national businesses.

Operating loss of $438.2 million includes $511.4 million impairment taken on U.S. Transit and Other.

Net loss attributable to OUTFRONT Media Inc. was $478.9 million.

Adjusted OIBDA decreased to $122.2 million.

Total Revenue
$469M
Previous year: $450M
+4.1%
EPS
$0.18
Previous year: $0.28
-35.7%
Adjusted OIBDA
$122M
Previous year: $125M
-2.5%
AFFO
$78M
Gross Profit
$223M
Previous year: $224M
-0.4%
Cash and Equivalents
$42.2M
Previous year: $117M
-63.9%
Free Cash Flow
$56M
Previous year: $55.7M
+0.5%
Total Assets
$5.59B
Previous year: $5.91B
-5.5%

Outfront Media

Outfront Media

Outfront Media Revenue by Segment

Forward Guidance

The company expects modest growth in the third quarter but anticipates some impact from ongoing strikes within the media industry, particularly in the transit business.

Positive Outlook

  • Long-term opportunity for the business and the out of home industry remains exciting.
  • Anticipates growth in the third quarter.
  • Focus on billboard growth.
  • Focus on transit growth.
  • Focus on mobile assets growth.

Challenges Ahead

  • Expecting modest growth in the third quarter.
  • Seeing some impact from the ongoing strikes within the media industry in the second half.
  • Impact is particularly in the transit business.
  • Revenue pacing and outlook for the remainder of 2023 reflects a continued decline in transit revenues.
  • MTA transit revenue recovery had stalled.

Revenue & Expenses

Visualization of income flow from segment revenue to net income