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Clear Channel Outdoor Holdings, Inc. (CCO)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 delivered low-single-digit growth: revenue rose 2.2% to $334.2M, in line with guidance; Adjusted EBITDA fell 12.5% to $79.3M on lower Airports rent abatements and early ramp costs on the new MTA roadside contract, while loss from continuing ops improved to $(55.3)M .
  • Versus S&P Global consensus, revenue missed ($334.2M vs $337.2M*) and EBITDA came in below consensus ($79.3M vs $88.3M*); Street EPS consensus was -$0.14*, but the company did not disclose EPS, focusing instead on loss from continuing ops and AFFO (AFFO was $(22.9)M) .
  • Guidance: Q2 revenue $393–$408M (4–8% YoY); full-year 2025 ranges maintained for revenue/Adj. EBITDA, with improved loss from continuing ops to $(70)–$(60)M (from $(105)–$(95)M) and higher AFFO to $80–$90M (from $73–$83M) .
  • Strategic actions/catalysts: closed Europe-North sale ($625M), divested Mexico/Peru/Chile, prepaid $375M CCIBV term loan, repurchased ~$120M face of 2028/2029 notes; management cites ~$37M annualized interest savings and strong 2025 booking visibility (>85% of Q2 revenue guidance already booked) .

Note: *Values retrieved from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • Americas and Airports both grew revenue in Q1; Americas +1.8% to $254.2M (digital +6.4% to $89.6M), Airports +4.0% to $80.0M (digital +15.6% to $49.3M), aided by Super Bowl LIX in New Orleans .
    • Balance sheet progress: prepaid $375M CCIBV term loan at 3/31 and repurchased $120M of 2028/2029 notes in April; management expects ~$37M reduction in annualized interest expense, supporting AFFO growth .
    • Corporate expense down 33.8% YoY to $19.8M, aided by $9.9M insurance recovery; management reiterated ~$35M annual corporate expense elimination and sees further opportunity .

  • What Went Wrong

    • Adjusted EBITDA declined 12.5% YoY to $79.3M, with Airports segment adjusted EBITDA down 25% amid normalization of rent abatements, and Americas margins pressured by higher site lease expense from the MTA contract ramp .
    • Direct operating and SG&A up 8.3% YoY to $232.2M; Americas site lease expense +6.6% to $88.3M and Airports site lease +16.4% to $51.2M as abatements rolled off .
    • AFFO was $(22.9)M vs $(12.8)M a year ago as lower Airports relief and ramp investments outweighed modest revenue growth; management still guides to FY25 AFFO $80–$90M on lower interest expense .

Financial Results

Consolidated summary (continuing operations)

MetricQ1 2024Q4 2024Q1 2025
Revenue ($M)$326.8 $426.7 $334.2
Adjusted EBITDA ($M)$90.6 $144.8 $79.3
Loss from Continuing Operations ($M)$(69.2) $(1.1) $(55.3)
AFFO ($M)$(12.8) $36.9 $(22.9)

Segment breakdown

SegmentQ1 2024 Revenue ($M)Q4 2024 Revenue ($M)Q1 2025 Revenue ($M)Q1 2024 Segment Adj. EBITDA ($M)Q4 2024 Segment Adj. EBITDA ($M)Q1 2025 Segment Adj. EBITDA ($M)
America$249.8 $310.7 $254.2 $95.5 $137.2 $87.9
Airports$76.9 $116.0 $80.0 $19.1 $32.8 $14.3

KPIs and operating notes

KPIQ1 2024Q1 2025
America digital revenue ($M)$84.2 $89.6
Airports digital revenue ($M)$42.6 $49.3
Corporate expenses ($M)$29.9 $19.8
Total capex ($M)$11.3 $13.2
Weighted avg. diluted shares (000s)483,720 490,332
Displays (total)—61,482

Results vs consensus (S&P Global)

MetricConsensus*Actual
Revenue ($M)337.2*334.2
EBITDA ($M)88.3*79.3
Primary EPS ($)-0.14*Not disclosed; loss from continuing ops $(55.3)M

Note: *Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious Guidance (Feb 24, 2025)Current Guidance (May 1, 2025)Change
Consolidated Revenue ($M)Q2 2025—393–408 New quarterly guide
America Revenue ($M)Q2 2025—302–312 New quarterly guide
Airports Revenue ($M)Q2 2025—91–96 New quarterly guide
Consolidated Revenue ($M)FY 20251,562–1,607 1,562–1,607 Maintained
America Revenue ($M)FY 20251,190–1,220 1,190–1,220 Maintained
Airports Revenue ($M)FY 2025372–387 372–387 Maintained
Loss from Continuing Ops ($M)FY 2025(105)–(95) (70)–(60) Raised (less negative)
Adjusted EBITDA ($M)FY 2025490–505 490–505 Maintained
AFFO ($M)FY 202573–83 80–90 Raised
Capital Expenditures ($M)FY 202575–85 75–85 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3’24, Q4’24)Current Period (Q1’25)Trend
AI/technology initiativesEmphasis on digital expansion and RADAR analytics; won 15-year NY MTA roadside digital contract (effective Nov 1, 2024) .AI driving sales productivity; deploying LLMs across targeting and creative; sees AI budgets as incremental vertical .Improving adoption/impact
Macro/tariffs and resilienceOn track to FY24 guidance; diversified U.S. focus; continued international sales processes .Not seeing cancellations; reiterates confidence despite tariff/recession headlines; most of 2025 revenue guidance booked .Stable-to-positive
Segment performanceQ4: America record revenue; Airports +4.3% vs tough comp .Q1: America +1.8%, Airports +4.0%; Airports benefiting from Super Bowl; normalization of abatements pressuring margins .Airports top-line healthy; margin normalization
Regional trends (San Francisco)Not highlighted in Q4 release.SF turning from 2023 headwind to 2025 tailwind; national advertiser interest improving .Improving
Deleveraging/capital structurePlanned Europe-North sale proceeds to repay CCIBV TL; intent to reduce leverage .Closed Europe-North; prepaid $375M CCIBV TL; repurchased $120M bonds; ~$37M annualized interest savings; more deleveraging possible .Improving
Contract/ramp dynamicsAnnounced MTA roadside contract win .MTA ramp adds site lease costs near-term; adds “a couple of points” to full-year America growth .Ramp weighing near-term margins

Management Commentary

  • “Our first quarter consolidated revenue increased 2.2%, in line with our guidance...We have now booked the majority of our 2025 revenue guidance for the year” — Scott Wells, CEO .
  • “We have begun reducing debt, resulting in meaningful decreases in interest expense...successfully eliminated approximately $35 million in annual corporate expenses” — Scott Wells .
  • “Adjusted EBITDA...down 12.5%, driven in part by the expected decline in our airports rate abatements and the planned ramp-up in the MTA Roadside billboard contract” — David Sailer, CFO .
  • “Over 85% of the second quarter revenue guidance is in the books...AI helped our inside sales team deliver double-digit percent improvement in productivity” — Scott Wells .
  • “We repurchased approximately $120 million of bonds...We have reduced our annualized interest expense to $381 million, saving $37 million” — David Sailer .

Q&A Highlights

  • Booking visibility/cancellations: Standard cancellation terms ~60 days for printed; digital varies; management not seeing cancellations and set guidance low end based on current view (not a macro “fan” of outcomes) .
  • Margin cadence/site leases: Airports margins reverting toward ~20% as abatements end; Q1 seasonally lower margins; MTA ramp a near-term headwind but positive longer term .
  • Debt strategy: Targeting best yield/discount in repurchases; reinvestment provisions allow 18-month window to deploy sale proceeds toward debt .
  • Digital vs print: Management does not see structural cannibalization; expects print to grow for full year; Q1 print decline was campaign-specific .
  • MTA impact: MTA contribution roughly “a couple of points” to full-year Americas growth; Q1 comps affected by calendar and Super Bowl timing .

Estimates Context

  • Revenue: $334.2M actual vs $337.2M consensus* (slight miss) .
  • EBITDA: $79.3M Adjusted EBITDA vs $88.3M consensus EBITDA*; note consensus EBITDA may not match company Adjusted EBITDA methodology .
  • EPS: Street Primary EPS consensus -$0.14*; company did not disclose EPS; loss from continuing ops was $(55.3)M .
  • Estimate depth: Revenue estimates (n=5); EPS estimates (n=3).
    Note: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: Top-line held in line with guidance, but the quarter was a profitability reset as Airports abatements roll off and the MTA contract ramps; watch Q2 sequential acceleration (4–8% revenue growth guide) as a validation of demand and mix .
  • Deleveraging is the story: Europe-North sale close, CCIBV prepayment, and bond buybacks are already lowering cash interest; further repurchases from available cash can compound AFFO upside if discounts persist .
  • 2025 guide intact with improved loss and AFFO: Maintaining revenue/Adj. EBITDA and raising AFFO reinforces management confidence and provides an underpin for estimate revisions on lower interest costs .
  • AI and direct sales push are gaining traction: Management cites double-digit sales productivity gains and expanding pipelines (including SF) — potential mix/velocity tailwinds into 2H .
  • Airports margin normalization is a known headwind: Expect structurally lower abatements vs 2023; the focus is volume/digital growth and yield management to stabilize margins near ~20% over time .
  • Watch the MTA ramp: It lifts digital scale and growth but pressures site lease costs near-term; execution on monetization is a key proof point for 2H margins .
  • Strategic optionality: Management indicated interest from counterparties in “creative solutions” to accelerate deleveraging — a potential catalyst if monetized on attractive terms .

Additional Relevant Updates (Q2 calendar)

  • Brazil sale agreement announced (Publibanca/Eletromidia affiliate) for ~R$80M (~US$14M), subject to CADE approval; further simplifies to U.S.-focused footprint .
  • Q2 investor conference participation and ongoing marketing/partnership campaigns support demand visibility (multiple press releases on 5/1, 5/8, 5/27) .

Citations:

  • Q1 2025 8-K/press release and exhibits:
  • Q1 2025 earnings call transcript:
  • Prior quarters (for trend): Q4 2024 press release ; Q3 2024 press release
  • Brazil sale agreement (5/7/2025):
  • S&P Global estimates: Marked with asterisks. Values retrieved from S&P Global.