Clear Channel Outdoor Holdings’ Q1 revenues were $608.8 million, a 5% increase from the $582.2 million reported for Q1 2009, and excluding the effects of movements in foreign exchange rates, the revenue increase would have been relatively flat.
CC Outdoor’s operating expenses decreased 1% for Q1 compared to Q1 2009. The decline in expenses would have been 6% excluding the effects of movements in foreign exchange rates. Also included in the Company’s direct operating expenses, SG&A expenses and corporate expenses for the first quarter of 2010 are $4.0 million of restructuring charges and approximately $2.7 million of non-cash compensation expense.
CC Outdoor’s consolidated net loss was $48.8 million or $0.14 per diluted share during Q1. This compares to a consolidated net loss of $91.4 million, or $0.25 per diluted share, for Q1 2009.
“Our first quarter results reflect the market leadership of our asset base in an improving advertising environment, as well as the positive impact of our restructuring initiatives,” said Mark Mays, CC Outdoor CEO. “The full effect of the recovering ad market on our top line was offset in part by our divestiture of non-strategic and less profitable assets, which impacted our results in the prior year’s first quarter. Our restructuring plan is producing tangible results, as evidenced by the decrease to our cost structure and the subsequent improvement in our profit margins.”
The company’s Americas revenues remained flat in Q1 compared to the same period of 2009. During the Q1 2010, revenue from posters increased $3.1 million, driven by an increase in occupancy. The company also saw an increase in airport revenues of approximately $4.8 million as a result of the Vancouver Olympics. Digital displays also contributed to revenue growth. Partially offsetting the increase was a decrease in revenues related to Taxi Media (details regarding Taxi Media’s 2009 quarterly and annual revenues and expenses are provided at the end of the release).
As of 3/31, the company had deployed a total of 485 digital displays in 34 U.S. markets. This includes 28 digital displays that were installed during Q1.
International outdoor revenue increased $25.8 million during Q1 compared to the same period of 2009, primarily as a result of a $25.1 million increase in foreign exchange. A stronger revenue performance from street furniture across countries as well as increased revenues from billboards in the UK were offset by revenue declines in Belgium, primarily due to a contract for a specific event in 2009, and the exit from businesses in Greece, India and the UK Taxi business.