Outfront Media Inc (OUT, Financial) released its earnings report for the third quarter of 2023 on November 2, 2023. The company reported revenues of $454.8 million, a slight increase from $453.7 million in the same period in 2022. The increase in revenues was primarily due to higher billboard revenues and strength in the local business.
Financial Performance
The company's operating income for the quarter was $58.6 million, a decrease from $74.3 million in Q3 2022. Net income attributable to Outfront Media Inc was $17.0 million, a significant decrease of 58.3% from $40.8 million in the same period last year. The company's Adjusted OIBDA for the quarter was $116.9 million, down from $123.2 million in Q3 2022.
Billboard Revenues and Expenses
Outfront Media Inc reported billboard revenues of $363.6 million, an increase of 2.4% primarily due to an increase in average revenue per display and the impact of new and lost billboards in the period, including acquisitions. However, transit and other revenues decreased by 7.6% to $91.2 million, primarily due to a decrease in average revenue per display. Total operating expenses increased by 3.1% to $239.8 million, primarily due to higher billboard property lease expenses and higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority.
Dividends and Liquidity
The company announced a quarterly dividend of $0.30 per share, payable on December 29, 2023. As of September 30, 2023, the company's liquidity position included unrestricted cash of $44.4 million and $493.5 million of availability under its $500.0 million revolving credit facility.
Outlook
Despite the decrease in net income, the company's CEO, Jeremy Male, expressed optimism about the company's future. He stated,
As expected, third quarter revenues were up slightly as a result of higher billboard revenues and strength in our local business. We were also pleased to recently announce an agreement for the strategic sale of our Canadian business to Bell Media, which will provide us with additional financial flexibility as we move towards 2024."
Investors and potential GuruFocus.com members are encouraged to monitor Outfront Media Inc's performance as the company navigates the challenges and opportunities in the upcoming quarters.
Explore the complete 8-K earnings release (here) from Outfront Media Inc for further details.
