Outfront Revs Jump-Started By Van Wagner Buy, Lamar Revenues Up

The outdoor advertising business ended 2014 on an up note, with Outfront Media (formerly CBS Outdoor) and Lamar Advertising both reporting revenue growth fueled by acquisitions and modest organic growth.

Outfront Media’s total revenues increased 14.9% from $343.9 million in the fourth quarter of 2013 to $395 million in the fourth quarter of 2014, due mostly to the company’s acquisition of the outdoor advertising assets of Van Wagner.

Excluding the impact of this acquisition, total revenues edged up 0.7% from $336 million to $339.3 million. Billboard revenues increased 17.5% to $281.9 million, but would have only increased 1% without the Van Wagner acquisition. Transit revenues grew 8.8% to $113.1 million, or 0.2% excluding the acquisition. International revenues fell 6.8% to $38.6 million, due to foreign currency fluctuations.

For the full year, Outfront’s revenues rose 4.6% to $1.35 billion; excluding the Van Wagner acquisition, they would have increased 2.2% to $1.3 billion. Full-year billboard revenues were up 5% to $972 million, or 1.5% without the acquisition, while transit revenues grew 3.6% to $381.7 million.



Full-year U.S. revenues were up 6.1% to $1.2 billion in 2014, or 2.1% to $1.14 billion without the Van Wagner acquisition; international revenues slipped 5.4% to $155 million, again due mostly to foreign currency fluctuations.

Lamar Advertising’s revenues increased 5.1% from $320.4 million in the fourth quarter of 2013 to $336.7 million in the fourth quarter of 2014. Accounting for acquisitions and divestitures, total revenues increased 4.4% to $329.4 million in the fourth quarter.

For the full year, Lamar’s total revenues grew 3.3% from $1.25 billion in 2013 to $1.29 billion in 2014. In October, Lamar announced the purchase of Marco Outdoor Advertising, which owns over 150 signs around New Orleans, including six digital displays.

Over the last year, Outfront and Lamar have both transitioned to a new corporate structure as Real Estate Investment Trusts, allowing them to substantially reduce their federal tax burden.

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