Quarterly earnings revealed by Outfront Media
Outfront Media, a leading out-of-home advertising company, has released its financial results for the second quarter of 2025. Despite a decline in revenue and earnings, the company managed to post a slight increase in Adjusted Funds From Operations (AFFO), demonstrating a resilient cash flow in the face of operational challenges.
The company reported GAAP revenue of $460.2 million for Q2, a 3.6% year-over-year decrease and slightly below the estimated $461.01 million. This decline was primarily due to lost billboards, partially offset by higher average revenue per display and gains from the programmatic platform. Net income attributable to Outfront Media was $19.5 million, down 89% from the prior year, with GAAP EPS falling significantly to $0.10 from $1.04 in Q2 2024. The decrease was largely due to the absence of a one-time gain in the previous year.
However, Outfront Media posted AFFO of $85.3 million for Q2, up modestly by 0.6% from the previous year. AFFO per share was $0.51, beating estimates of $0.46, indicating a steady cash flow generation despite the revenue and earnings challenges.
In terms of segment performance, billboard revenues declined 2.5% year over year to $351.3 million. Transit revenues, on the other hand, increased 5.6% to $106.3 million, driven by higher yields despite some lost franchise contracts.
The operating income dropped sharply to $56.2 million from $229.1 million the year before. Operating expenses decreased 3.5% year over year, aiding margin performance. The Adjusted Operating Income Before Depreciation and Amortisation (OIBDA) improved by 60 basis points to 27%.
Net interest expenses fell 11.2% due to lower debt and interest rates, with the weighted average cost of debt at 5.4% versus 5.6% the previous year.
In summary, Outfront Media faced significant earnings and revenue pressure in Q2 2025 due to difficult comparisons and lost billboard assets. However, the company managed to sustain and slightly grow AFFO, demonstrating resilient cash flows amid operational challenges.
- Outfront Media reported a GAAP EPS of $0.10 in Q2.
- The Adjusted OIBDA for Q2 was $124.1 million.
- Net income attributable to Outfront Media was $19.5 million in Q2.
- Revenue for Q2 was $460.2 million, which missed the target by $0.8 million.
- The operating income for Q2 was $56.2 million.
- AFFO attributable to Outfront Media was $85.3 million in Q2.
Outfront Media's GAAP EPS in Q2 was $0.10, while the Adjusted OIBDA for the same period was $124.1 million. Despite missing the revenue target by $0.8 million with a revenue of $460.2 million, the company managed to post an AFFO of $85.3 million for Q2.
