Big 3 Earnings Q1 2024: About As Expected

by Amber Larkins, OOH Today

Earlier this month, the “Big 3″—Lamar Advertising, Clear Channel Outdoor, and OUTFRONT—released their first quarter of 2024 earnings. Last year, we reported on their Q4 earnings and Q1 projections. Though all three companies carried heavy debt burdens, they all projected positive outcomes for 2024.

How did the first quarter shape up for them? Were their projections on par? Read on to find out.

Big Three Growth

OUTFRONT, Lamar, and Clear Channel all saw growth year over year. Clear Channel led the way with a 9.3% revenue increase.

Next, let’s examine their projected versus actual earnings for Q1 2024 and how their plans for the year are shaping up.

OUTFRONT

Outfront thought total revenue growth would be in the low to mid-single-digit range. They also believed that billboard and transit revenue would increase. They mentioned plans to close the sale of their Canadian business in the first half of this year and to apply the proceeds to debt.

Their projections were correct, with a 3.2% growth for the first quarter of 2024 compared to last year. Transit and billboard revenue increased as expected due to increased revenue per display.

Lamar Advertising

Lamar Advertising projected 3-4% growth in Q1 2024. They had plans to slow down on acquisitions and their ongoing conversions of static screens to digital this year. They also had plans to pay down debt.

Their actual results exceeded expectations with a 5.7% increase in revenue YOY.

“Our first-quarter results exceeded our internal expectations, with particular strength in local sales. In addition, we returned to same-store growth in digital, and the rest of 2024 is shaping up well,” Lamar chief executive Sean Reilly said.

Clear Channel

In Q4 2023, Clear Channel planned to continue selling off its business in other markets. It said the goal was to streamline its organization and focus on US markets. It projected 6-12% growth for the first quarter of this year and 3-6% overall for 2024.

Clear Channel reported a 9.3% increase in revenue for the first quarter of 2024. Its digital and print advertising segments in the Americas region contributed to its growth. Clear Channel is negotiating the sale of its Europe-North segment and looking at potential deals in Latin America. It’s also successfully refinanced its term loan and CCIBV notes, improving its financial flexibility for future mergers and acquisitions.

The company plans to focus on integrating technology and data analytics to broadly appeal to advertisers, and they expect mid-single-digit growth for the year.

Big 3 Debt Summary

The advertising industry is known for being sensitive to economic cycles, which affect advertising budgets. There’s also an ongoing digital transformation within the advertising space. All three companies have significant debt, as measured below in billions.

All three companies are still carrying significant debt. Lamar has $3.4 billion as of the end of the quarter, just slightly higher than 2023. Clear Channel’s debt has also remained relatively stable at $5.3 billion. Outfront’s debt has gone to $4.38 billion. Their debt-to-equity ratio is 6.81, which indicates a heavy reliance on debt financing.  Though all three companies appear to have significant debt, they also met or exceeded their forecasts for the first quarter of 2024.

What are your thoughts? Let us know in the comments below.