When the acquisitions are included, total revenues jumped 15% to $384.7 million.
The company attributed the overall growth to strong demand in its transit advertising business, where national advertising helped buoy the bottom line. The big increase in reported revenues was due principally to Outfront’s acquisition of Van Wagner Communications’ billboard assets in July of last year.
When the impact of the Van Wagner acquisition is excluded, Outfront’s transit and other ad revenues were up 12.7%, or 16% when the Van Wagner assets are included. The growth in transit ad revenues more than offset a 1% decrease in billboard revenues, when the Van Wagner assets are excluded; billboard revenues were up 14.7% when the acquisition is included.
Outfront chairman and CEO Jeremy Male noted a number of wins that will maintain the momentum for transit advertising, including the extension of Outfront’s New York City subway advertising contract.
Outfront’s overseas business saw total revenues slip 10.9% to $38.6 million, due in largely to the impact of foreign currency fluctuations. When foreign exchange variations are excluded, international revenues were actually up 2.4%, led by growth in Outfront’s Mexican business.
The company also reported that its U.S. federal income tax burden has fallen substantially following its reorganization as a real estate investment trust, which took effect in July of last year. According to the company, the amount of cash paid for income taxes fell from $23.5 million in the second quarter of 2014 to just $0.6 million in the second quarter of 2015.