Outfront Media Q3 FFO Improves, But Revenue Slips; Declares Special Dividend

OUTFRONT Media

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(RTTNews) - Outfront Media Inc. (OUT), an outdoor media and advertising firm, on Tuesday reported an increase in Funds from Operations or FFO for the third-quarter, primarily due to lower impairment charges on non-real estate assets and lower interest expense.

However, the company recorded a decline in revenue.

For the three-month period to September 30, the media firm registered FFO of $82.7 million, higher than the $73.4 million recorded for the same period last year. This is mainly due to lower impairment charges on non-real estate assets and lower interest expense.

Excluding items, FFO stood at $80.8 million, compared with the prior year's $75.7 million, due to lower maintenance capital expenditures.

Net income improved to $34.6 million or $0.19 per share, from $17 million or $0.09 per share in 2023.

On average, five analysts polled by Thomson Reuters had expected the firm to earn $0.18 per share, for the quarter. Analysts' estimates typically exclude special items.

Adjusted OIBDA increased to $117.1 million from $116.9 million a year ago.

Total expenses were $380.6 million, lower than last year's $396.2 million.

Revenue slipped to $451.9 million from the previous year's $454.8 million, below analysts' estimate of $456.63 million. Revenue was impacted by the sale of equity interests in Outdoor Systems Americas ULC and its subsidiaries, which hold all of the assets of the company's outdoor advertising business in Canada.

In connection with the transaction, the company received C$410.0 million in cash.

The company will pay a special dividend of $0.75 per share on December 31, to shareholders of record as of November 15.