Outfront Media Q3 2022 Earnings Report
Key Takeaways
OUTFRONT Media reported Q3 2022 results with revenues of $453.7 million, a 13.7% increase compared to the same period last year. Billboard revenues were up 11.8%, and transit revenues continued to recover. Net income attributable to OUTFRONT Media Inc. was $40.8 million, a 23.3% increase year-over-year.
Revenues increased by 13.7% to $453.7 million compared to the same prior-year period.
Billboard revenues increased by 11.8% to $355.0 million, driven by higher yields.
Transit and other revenues increased by 20.7% to $98.7 million, due to increased transit ridership.
Net income attributable to OUTFRONT Media Inc. increased 23.3% to $40.8 million compared to the same prior-year period.
Outfront Media
Outfront Media
Outfront Media Revenue by Segment
Outfront Media Revenue by Geographic Location
Forward Guidance
The company expects key performance indicators and total revenues to incrementally improve in 2022 compared to 2021, with total revenues expected to be comparable to pre-COVID-19 pandemic levels based on strong billboard revenue performance. Total transit and other revenues are expected to incrementally improve but remain materially below pre-COVID-19 pandemic levels until 2023. Adjusted OIBDA is also expected to incrementally improve and be comparable to pre-COVID-19 pandemic levels.
Positive Outlook
- Total revenues in 2022 are expected to be comparable to pre-COVID-19 pandemic levels.
- Strong performance is expected in total billboard revenues in the U.S. Media segment.
- Adjusted OIBDA is expected to incrementally improve in 2022.
- Improvements in transit and other business are expected.
- Total expenses are expected to increase in 2022 as compared to 2021, and be comparable to pre-COVID-19 pandemic levels.
Challenges Ahead
- Uncertainty remains around the severity and duration of the COVID-19 pandemic.
- Reimplementation of COVID-19 measures could significantly impact the business.
- Total transit and other revenues in the U.S. Media segment are expected to remain materially below pre-COVID-19 pandemic levels until 2023.
- Transit franchise expenses are expected to decrease in 2022 as compared to 2021, but be higher in 2022 than pre-COVID-19 pandemic levels.
- Results for the three and nine months ended September 30, 2022, are not indicative of the results that may be expected for the fiscal year ending December 31, 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income