Big 3 Q2 Earnings Report
The “Big 3″—Lamar Advertising, Clear Channel Outdoor, and OUTFRONT Media—have released their second quarter 2024 earnings. Last quarter, we reported that their Q1 results were largely in line with expectations. The companies all reported relatively strong Q2s.
Let’s dive into the details of their Q2 performance and what lies ahead.
Big Three Growth
OUTFRONT reported revenues of $477.3 million, reflecting an $8.5 million (1.8%) increase year-over-year (YOY). Lamar’s net revenue came in at $565.3 million, while Clear Channel reported revenue of $558.54 million.
Big 3 Debt Summary
All three companies continue to carry substantial debt, as detailed below:
- OUTFRONT: Total indebtedness as of June 30, 2024, stood at $2.5 billion,
- Lamar: Holds $3.5 billion in total debt.
- Clear Channel: Current liabilities, excluding the current portion of long-term debt, amount to $832.37 million—a $50.78 million decrease YOY.
OOH Company Details
OUTFRONT sold its Canadian business in June to focus exclusively on the U.S. market, receiving C$410 million from the transaction. The Q2 2024 results include the Canadian business up until the sale date.
Billboard revenues increased by just 0.5% YOY, due to higher average revenue per display and the impact of new and lost billboards. Transit and other revenues rose by $6.7 million (6.9% YOY), primarily due to increased average revenue per display, but partially offset by changes in transit franchise contracts.
Operating expenses were down 2.5%, mainly due to lower billboard property lease costs.
Lamar reported Q2 2024 revenues of $565 million, up 4.5% YOY. Local revenues increased by 5%, national revenues declined by 2.5%, and programmatic revenues surged by 72% YOY. The South Atlantic region was the top performer.
Lamar plans to allocate $40 to $50 million for acquisitions this year and recently paid off a term loan, which it says enhances its already strong balance sheet and positions it for further acquisitions. The company noted that larger-format digital OOH is outperforming smaller formats in meeting advertiser goals.
Clear Channel delivered Q2 2024 revenue of $559 million, a 5.2% increase YOY, driven by strong demand in the Airports and Europe-North segments. Digital billboards and data analytics continue to be key drivers of growth in the U.S., while technology investments and local sales team expansion support their strategic goals. The company has modestly increased its full-year revenue projections, with a focus on higher-margin U.S. assets and continuing the sales process in Europe and Latin America.
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