Clear Channel has reported an increased net loss for the first half of the year, as the novel coronavirus (Covid-19) crisis hit several areas of the digital signage business.

Overall revenue for the six months through to June 30th amounted to $865.7m (£660.0m/€730.2m), down 32.6% from $1.29bn in the corresponding period last year.

Though the Americas remain Clear Channel’s core market in terms of income, revenue for this region was down 17.4% year-on-year to $495.5m.

However, the fall in Europe was sharper, with revenue dropping 40.3% from $534.3m to $319.0m, while revenue in other regions slumped 66.1% to $51.2m.

Spending among Clear Channel’s customers inevitably slowed during the mid to latter stages of the first half due to the Covid-19 pandemic, with many marketing budgets being squeezed in order to help businesses through local shutdowns.

In terms of Clear Channel’s own spending, direct operating expenses were down to $604.8m, while selling, general and administrative costs were also cut 13.3% to $223.4m.

Corporate spend was up slightly to $69.0, but deprecation and amortisation costs was lower at $141.9m. However, Clear Channel also had to account for $123.1m in impairment charges.

After accounting for $63.6m in other income, Clear Channel posted an operating loss of $233.0m for the period, compared to a profit of $91.6m in H1 of 2019.

When counting other costs, including $178.9m in interest expenses, this left the company with a $435.3m loss before tax, a much wider loss the $152.3m last year. Clear Channel did receive $3.4m in tax benefit, but still posted a net loss of $414.7m, compared to $175.1m last year.

Clear Channel chief executive William Eccleshare comments: “As we continue to navigate the unprecedented impact of the Covid-19 pandemic on our business, we remain focused on executing our strategy to enhance liquidity, preserve our financial flexibility and support the continuity of our platform and operations while supporting our people and customers.”

Picking out some of the key results in Q2, during which the impact of the Covid-19 pandemic was most felt by Clear Channel, revenue was down by 54.9% to $314.9m.

Operating loss stood at $68.6m, compared to an $82.5m profit last year, while loss before income tax reached $161.8m, higher than $40.5m in 2019. Net loss for Q2 was $137.2m, much wider than $10.9m last year.

However, looking forward, Eccleshare says while there is still a great level of uncertainty, the company is starting to see signs of recovery in some of its key markets.

“In the third quarter, we are beginning to see a rebound in mobility and traffic levels in many markets both in Europe and the US, and, as this happens, we are experiencing positive customer activity,” he says.

“While there is still some uncertainty as to the timing of a sustained economic recovery, we remain optimistic that, as and when the markets in which we operate rebound, we will return to historic operational levels and pivot back to our long-term priorities of debt reduction, free cash flow generation and expanded growth investments.

“In the interim, we are confident that our strengthened liquidity position will continue to support our business as our entire team focuses on capturing opportunities to drive revenue and increase operational efficiencies.”

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