Outfront Media Q4 2021 Earnings Report
Key Takeaways
OUTFRONT Media Inc. reported strong Q4 2021 results, with revenues up 38% due to significant growth in both billboard and transit sectors. The company's OIBDA and AFFO exceeded 2019 levels, leading to an increased quarterly dividend.
Total revenues increased by 38% to $464.5 million compared to the same quarter in the previous year.
Operating income reached $105.2 million.
Net income attributable to OUTFRONT Media Inc. was $71.1 million, with earnings per diluted share at $0.41.
Adjusted OIBDA increased by 82.0% to $151.1 million.
Outfront Media
Outfront Media
Outfront Media Revenue by Segment
Outfront Media Revenue by Geographic Location
Forward Guidance
OUTFRONT Media anticipates incremental improvements in key performance indicators and total revenues for 2022, with total revenues potentially surpassing pre-COVID-19 levels, driven by strong billboard performance. However, transit and other revenues are expected to remain materially below pre-pandemic levels, and total expenses are projected to increase. The company will focus on cost management and constructive discussions with transit franchise partners.
Positive Outlook
- Total revenues in 2022 are expected to approach or potentially surpass pre-COVID-19 pandemic levels.
- Strong performance is expected in total billboard revenues within the U.S. Media segment.
- Total transit and other revenues in the U.S. Media segment are anticipated to incrementally improve.
- Adjusted OIBDA is projected to incrementally improve, driven by improvements in the transit and other business.
- Focus on managing costs and expenses to offset any decreases in revenues.
Challenges Ahead
- Transit and other revenues in the U.S. Media segment are expected to remain materially below pre-COVID-19 pandemic levels.
- Total expenses are expected to increase in 2022 compared to 2021 and exceed pre-COVID-19 pandemic levels.
- Billboard property lease expenses, such as rental expenses, and posting, maintenance, and other expenses, are expected to be consistent with pre-COVID-19 pandemic levels as a percentage of revenues.
- 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.
- Uncertainty remains around the severity and duration of the COVID-19 pandemic and its impact on the business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income