Clear Channel Reports FFO Loss For Q3; Cuts Annual Outlook

(RTTNews) - Clear Channel Outdoor Holdings Inc. (CCO), an outdoor advertising firm, on Wednesday reported loss from Funds from Operations or FFO for the third quarter of 2023, amidst a surge in other operating expenses. In addition, CCO has revised down its annual outlook.

For the three-month period to September 30, the company reported an FFO loss of $10.713 million, compared with an FFO profit of $10.805 million, recorded for the same period last year.

Excluding items, FFO declined to $24.612 million from the previous year's $33.864 million.

Net loss was at $263.490 million as against a loss of $39.757 million in 2022.

Loss from continuing operations widened to $51.082 million from $18.798 million of last year.

Loss from discontinued operations was $211.736 million, compared to loss of $19.982 million a year ago.

Operating income moved down to $69.517 million from $80.670 million a year ago.

Other operating expenses surged to $6.179 million from last year's $1.863 million.

Depreciation and amortization stood at $57.699 million, higher than $49.871 million a year ago.

Excluding items, EBITDA dropped to $139.216 million from $137.947 million in 2022.

Revenue was $526.786 million, up from last year's $503.344 million. Looking ahead, for the full year, Clear Channel has revised down its guidance.

The company now expects to post an Adjusted FFO of $67 million to $80 million against its previous guidance of $62 million to $82 million.

Excluding items, CCO now expects EBITDA of $520 million to $542 million, lesser than its previous outlook of $522 million to $552 million.

Clear Channel forecasted loss from continuing operations of $190 million to $172 million.

The company now anticipates revenue of $2.091 billion to $2.118 billion against its earlier expectation of $2.465 billion to $2.535 billion.

On average, six analysts polled by Thomson Reuters expect the company to report revenue of $2.45 billion, for the year. Analysts' estimates typically exclude special items.

For the fourth quarter of 2023, the advertising firm forecast revenue of $591 million to $618 million, below the analysts' estimates of $700.43 million.