Bullish indicating open at $55-$60, IPO prices at $37
Introduction & Market Context
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) presented its second quarter 2025 financial results on August 5, 2025, showcasing solid growth across its business segments. The out-of-home advertising company reported consolidated revenue growth of 7.0% year-over-year, driven by strong performance in both its America and Airports segments, with digital advertising emerging as a key growth driver.
The company continues to focus on its core markets after divesting multiple international operations over the past two years, with a pending sale of its Brazil business announced in Q2 2025. Clear Channel has also undertaken significant debt refinancing initiatives to strengthen its balance sheet and extend maturities.
Quarterly Performance Highlights
Clear Channel reported consolidated revenue of $403 million for Q2 2025, representing a 7.0% increase compared to the same period in 2024. Income from continuing operations reached $6 million, while Adjusted EBITDA grew 7.7% to $129 million. The company’s Adjusted Funds From Operations (AFFO) showed particularly strong improvement, increasing 75.9% to $28 million.
As shown in the following financial highlights from the presentation:
The company’s performance was bolstered by strong digital revenue growth across both segments. In the America segment, digital revenue increased by 11.1% to $114 million, while the Airports segment saw digital revenue surge by 31.5% to $64 million, reflecting the company’s successful digital transformation strategy.
Segment Performance Analysis
The America segment, which includes billboards and transit advertising, reported revenue of $303 million, up 4.4% year-over-year. Segment Adjusted EBITDA increased slightly by 0.5% to $128 million. Growth was primarily driven by the MTA contract and strong digital revenue performance, with local sales increasing by 7.4%. National sales accounted for 33.7% of America segment revenue.
The detailed financial results for the America segment are illustrated here:
The Airports segment demonstrated even stronger performance, with revenue increasing 15.6% to $100 million and Segment Adjusted EBITDA growing 27.6% to $24 million. This growth was driven by strong advertising demand at key airports and significant digital revenue expansion. National sales represented 59.3% of Airports segment revenue.
The Airports segment’s impressive performance is detailed in the following slide:
Site lease expenses increased in both segments, rising 11.1% to $94 million in America (largely due to the MTA contract) and 13.4% to $60 million in Airports (primarily driven by revenue growth).
Capital Structure and Debt Management
Clear Channel has been actively managing its debt profile, extending maturities and refinancing existing obligations. As of June 30, 2025, the company reported cash and cash equivalents of $139 million and total debt of $5,067 million, with a weighted average cost of debt of 7.3%.
During Q2 2025, the company repurchased $230 million of senior notes. On August 4, 2025, Clear Channel issued $1,150 million of 7.125% Senior Secured Notes due 2031 and $900 million of 7.500% Senior Secured Notes due 2033, effectively refinancing approximately 40% of its debt maturities.
The company’s capital structure and balance sheet metrics are detailed here:
Clear Channel has continued its strategy of divesting international operations, with completed sales totaling $745 million since 2023. These transactions include Switzerland ($94 million), Italy ($16 million), France (negative $10 million), Mexico, Peru and Chile ($20 million), and Europe-North ($625 million). A pending sale of the Brazil business for approximately $14.7 million was announced in Q2 2025.
The progress of international divestitures is shown in this slide:
Forward Guidance and Outlook
Clear Channel provided guidance for both the third quarter and full year 2025. For Q3 2025, the company expects consolidated revenue between $395-$410 million, with America segment revenue of $303-$313 million and Airports segment revenue of $92-$97 million.
For the full year 2025, Clear Channel confirmed its previous guidance, projecting consolidated revenue of $1,570-$1,600 million and Adjusted EBITDA of $490-$505 million. The company expects AFFO to reach $75-$85 million, with capital expenditures of $60-$70 million and cash interest payments of approximately $394 million.
The company’s detailed guidance is presented in the following slide:
Clear Channel’s management expressed confidence in the second half of 2025, supported by the strong performance of its digital advertising offerings and continued growth in the Airports segment. The company remains focused on expanding its digital billboard network and enhancing its data analytics and programmatic capabilities to meet evolving advertiser demands.
The company’s operating results across segments demonstrate the effectiveness of its strategic focus on core markets and digital transformation:
As Clear Channel continues to streamline its operations and strengthen its financial position, investors will be watching closely to see if the company can maintain its growth momentum in the increasingly competitive out-of-home advertising market.
Full presentation:
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