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Dec 31, 2020
Outfront Media Q4 2020 Earnings Report
Reported a decrease in revenue due to the impact of the COVID-19 pandemic, but digital billboards returned to growth.
Key Takeaways
OUTFRONT Media reported Q4 2020 revenues of $335.8 million, a decrease of 31.2% compared to the same period last year. Net income attributable to OUTFRONT Media Inc. was $4.3 million, or a loss of $0.02 per diluted share. Adjusted OIBDA was $83.0 million and AFFO attributable to OUTFRONT Media Inc. was $49.9 million.
Total revenues decreased by 31.2% to $335.8 million compared to the same quarter last year.
Digital billboards returned to growth, driving total revenues above expectations.
Net income attributable to OUTFRONT Media Inc. was $4.3 million, a decrease compared to $45.0 million in the same prior-year period.
Adjusted OIBDA decreased by 40.9% to $83.0 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 to return to positive revenue growth in the second quarter and anticipates further recovery throughout the year.
Positive Outlook
- Return to positive revenue growth in Q2 as we lap the onset of the pandemic.
- Further recovery in our business throughout the year.
- Key performance indicators and total revenues to incrementally improve in 2021 as compared to 2020
- Billboard property lease expenses and posting, maintenance and other expenses, such as rental expenses, as a percentage of revenues, to decrease in 2021 as compared to 2020
- Expect to meet minimum annual 2021 REIT distribution requirements
Challenges Ahead
- Key performance indicators and total revenues to be materially lower in 2021 than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business.
- Total expenses to increase in 2021 as compared to 2020, but be materially lower than pre-COVID-19 pandemic levels, particularly in our U.S. Media segment and with respect to our transit and other business.
- Billboard property lease expenses and posting, maintenance and other expenses, such as rental expenses, as a percentage of revenues, to be materially higher than pre-COVID-19 pandemic levels.
- Transit franchise expenses, such as transit franchise payments, as a percentage of revenues, to increase in 2021 as compared to 2020, but be materially higher than pre-COVID-19 pandemic levels, primarily due to our guaranteed minimum annual payment amounts owed to the MTA resuming on January 1, 2021.
- The COVID-19 pandemic has (i) delayed our ability to build and deploy certain advertising structures and sites, including digital displays; (ii) reduced or curtailed our customers’ advertising expenditures and overall demand for our services through purchase cancellations or otherwise; (iii) increased the volatility of our customers’ advertising expenditure patterns from period-to-period through short-notice purchases, purchase deferrals or otherwise; and (iv) extended delays in the collection of certain earned advertising revenues from our customers, all of which could have a material adverse effect on our business, financial condition and results of operation in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income