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Sep 30, 2020
Outfront Media Q3 2020 Earnings Report
Outfront Media's financial performance declined due to the impact of the COVID-19 pandemic, but billboard revenue exceeded expectations and significant cost reductions drove sequential improvements in Adjusted OIBDA and AFFO.
Key Takeaways
Outfront Media reported a decrease in revenue and a net loss for Q3 2020, impacted by the COVID-19 pandemic. However, billboard revenue performed better than expected, and cost reductions led to improvements in Adjusted OIBDA and AFFO.
Revenues decreased by 39.0% to $282.3 million compared to the same prior-year period.
Net loss attributable to OUTFRONT Media Inc. was $13.5 million, or $0.14 per diluted share.
Adjusted OIBDA decreased by 51.2% to $68.5 million.
AFFO attributable to OUTFRONT Media Inc. decreased by 70.1% to $27.7 million.
Revenue by Segment
Forward Guidance
The COVID-19 pandemic has had a significant impact on the global economy and our business. We expect our key performance indicators, total revenues and total expenses to be materially lower in 2020 than historical levels.
Positive Outlook
- Expect incremental improvement in the third and fourth quarters of 2020.
- Suspended or delayed our deployment of digital transit displays
- Reduced capital expenditures
- Reduced expenses through cost-savings initiatives.
- Suspended quarterly dividend payments on our common stock
Challenges Ahead
- Delayed ability to build and deploy advertising structures and sites, including digital displays.
- Reduced or curtailed customers’ advertising expenditures and overall demand for our services through purchase cancellations or otherwise
- Increased the volatility of customers’ advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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