Clear Channel Outdoor Holdings, Inc. (CCO) saw a boost of 13.44% in premarket after the company initiates a review of strategic alternatives for European business. However, the last trading session closed at $3.05 with a decrease of 2.24%.
Review of Strategic Alternatives for European Business
CCO announced on 13th December 2021 that the Board of Directors has approved a strategic evaluation of the European company that incorporates the possibility of a sale. The company has been open about the ongoing examination of disposal prospects that are both strategic and in the best interests of the shareholders. Moreover, CCO feels that now is the perfect moment to explore possibilities for the European company, which saw strong sales growth in the third quarter.
This announcement underscores the commitment to the Americas. The efforts in the digital presence, data analytics, and programmatic trading, which are helping to streamline and simplify the buying process, have contributed to the robust growth in America’s business.
Furthermore, the company has seen a noticeable increase in demand across all of the markets, and the team is still focused on delivering profitable growth, continuing to invest in accretive prospects, improving the balance sheet, and showing the model’s operating leverage.
Third Quarter 2021 Results Revealed!
On 9th November 2021, CCO reported third-quarter 2021 results. According to the report, the revenue has increased to $319 million while adjusted EBITDA climbs up to $139.1 million. Moreover, income increased across the board in the Americas division, owing to the strength of the billboard inventory and increased revenue from digital displays. Additionally, when travel began to recover in the third quarter, the company observed an increase in airport display revenue.
Furthermore, the removal of COVID-19 limits and improved immunization levels in our Europe sector have resulted in considerable revenue increases, notably in the United Kingdom, where revenues exceeded 2019 levels. Lastly, the street furniture and store displays performed exceptionally well across Europe.
How was the quarter?
The company had a solid third-quarter performance and began the fourth quarter with the business moving forward. In addition, advertisers are coming back to launch fresh campaigns and re-establish brand recognition. This comeback, along with new advertisers finding the medium for the first time, is propelling growth in many of the markets, including digital and conventional assets, ahead of 2019 revenue levels.