NYSE$CCO

Clear Channel Outdoor Holdings Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Clear Channel Outdoor's performance was severely impacted by COVID-19, with revenue declining across all segments, while the company focused on cost savings and liquidity measures.

Clear Channel Outdoor Holdings, Inc. reported a significant decline in revenue and profitability for Q2 2020 due to the extensive impact of the COVID-19 pandemic on the global advertising market. The company focused on enhancing liquidity through cost-saving measures, the sale of Clear Media, and a successful notes offering. While the company is seeing a rebound in mobility and traffic levels, uncertainty remains regarding the timing of a sustained economic recovery.

  • Revenue decreased by 54.9% year-over-year to $314.9 million due to COVID-19 impacts.
  • Americas revenue decreased by 39.0% year-over-year to $199.7 million.
  • Europe revenue decreased by 63.0% year-over-year to $107.3 million.
  • The company implemented cost-saving measures exceeding $125 million in Q2 and increased liquidity through asset sales and debt offerings.

Headline financials

Total Revenue

$315M

Previous: $698M-54.9%
EPS (adj)

-$0.30

Previous: -$0.01-2900.0%
Capital Expenditures

-$63.2M

Previous: -$51.1M-23.6%
Free Cash Flow

-$200M

Previous: -$62M-222.9%
Net Income

-$137M

Previous: -$10.9M-1154.2%
Operating Income

-$68.6M

Previous: $82.5M-183.2%
Gross Profit

$60.4M

Previous: $335M-82.0%
Cash & Equivalents

$662M

Previous: $372M+77.7%
Total Assets

$5.56B

Previous: $6.43B-13.4%
Stock-Based Comp

$3.11M

Previous: $8.56M-63.7%

Revenue & EPS history

Clear Channel · Revenue · Quarterly

$315M

Q2 2020-54.9%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Clear Channel · $208M total across 2 segments · Q2 2020

  • America
    $200M-39.0%
  • Other
    $7.86M-90.2%

Forward guidance

The company is seeing sequential growth in customer bookings in Q3, but current bookings remain significantly below historic norms. The rebounds could slow down or be reversed if there is a resurgence in COVID-19 cases. The company expects to implement further cost savings initiatives throughout the remainder of the year.

Tailwinds

  • Increase in mobility, traffic and other out-of-home metrics
  • Sequential growth in customer bookings
  • Strong rebound in bookings in Europe
  • Positive rebounding in Americas
  • Further cost savings initiatives to be implemented

Headwinds

  • Unclear when a sustainable economic recovery will take hold
  • Current bookings remain significantly below historic norms
  • Latin America business bookings continue to be severely constrained
  • Resurgence in COVID-19 cases could slow down or reverse rebounds
  • Uncertainty regarding customers' businesses operating under normal conditions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.9%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-1.5%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+26.5%

Q3 2020

Best reaction

-20.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.0%
Q4 2025-0.8%-0.4%-2.1%
Q3 2025-1.7%+8.3%+9.9%
Q1 2025+5.7%+11.2%+9.2%
Q4 2024-2.2%-7.4%-15.6%
Q3 2024-3.3%-2.7%+0.7%
Q2 2024-4.9%-7.0%+5.6%
Q1 2024+1.9%+1.3%-10.4%
Q4 2023+3.2%-4.8%-12.2%
Q3 2023+14.2%+16.8%+46.0%
Q2 2023-7.1%-8.9%-13.1%
Q1 2023-16.7%-14.3%+6.3%
Q4 2022+5.2%+2.6%-27.7%
Q3 2022-20.7%-6.6%-16.5%
Q2 2022-3.0%+10.9%+0.0%
Q1 2022-14.5%-12.1%-32.2%
Q4 2021+1.9%+3.3%+0.5%
Q3 2021+3.4%+11.3%-4.6%
Q2 2021+11.3%+4.2%+6.3%
Q1 2021-8.6%-15.3%+11.3%
Q4 2020-17.3%-11.5%-10.6%
Q3 2020+26.5%+26.0%+31.0%
Q2 2020+8.3%+30.2%+28.1%
Q1 2020+5.7%+9.9%+59.3%
Q4 2019+1.5%-3.9%-73.0%
Q3 2019+0.8%+0.8%-1.9%
Q2 2019-10.6%-17.8%-14.2%
Q1 2019-1.9%-5.8%+0.4%
Q4 2018-8.7%-7.5%+1.6%
Q3 2018-2.7%-6.2%-9.0%
Q2 2018+3.5%+5.8%+5.8%
Q1 2018-4.3%-7.5%+0.0%
Q4 2017-9.3%-2.1%-10.3%
Q3 2017+2.5%+2.5%+10.1%
Q2 2017-13.9%-2.0%-19.8%
Q1 2017-5.9%-9.8%-22.5%
Q4 2016-12.3%-9.4%+13.4%
Q3 2016+0.0%-6.0%-4.3%
Q2 2016-6.6%-7.9%-2.7%
Q1 2016+9.4%
Q4 2015+2.9%
Q3 2015-17.6%
Q2 2015+3.6%
Q1 2015+1.5%
Q4 2014-2.5%
Q3 2014+3.1%
Q2 2014+0.1%
Q1 2014-6.3%
Q4 2013-1.3%
Q3 2013+2.1%
Q2 2013+0.3%
Q1 2013+0.0%
Q1 2011-0.7%
Q4 2011-0.7%
Q4 2012-0.7%
Q3 2012-1.2%
Q2 2012-7.3%
Q1 2012-3.8%
Q4 2009-3.3%
Q2 2011-3.3%
Q3 2010-11.9%
Q3 2011-11.9%
Q2 2010-1.4%
Q4 2010-1.4%
Q1 2010+6.9%

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