Outfront MediaNYSE: OUT

OUTFRONT Media announces the completion of the sale of its Canadian business to Bell Media for C$410 million.

NEW YORK , June 10, 2024 /PRNewswire/ -- OUTFRONT Media Inc. (NYSE: OUT) and Bell Media Inc., a wholly-owned subsidiary of BCE Inc. (TSX, NYSE: BCE), announced today that they have closed the sale of OUTFRONT Media's Canadian business to Bell Media for a purchase price of C$410 million in cash, subject to certain purchase price adjustments. Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media, said: "The sale of our Canadian business illustrates the inherent value of our out-of-home assets, and will enable us to proactively reduce our financial leverage and also focus entirely on operating what is now a fully domestic business here in the United States.

We rated Outfront Media Inc. as a Sell due to concerns about leverage and cyclicality of earnings. Q1-2024 results showed decent performance with total revenues up 3.2% and strong growth in local revenues. The company's debt profile is a concern, but the sale of the Canadian business and expected revenue growth in Q3 and Q4 will improve the situation.

Having a variety of advertising sites and making strategic investments in digital billboards will probably help boost OUTFRONT Media's (OUT) success.

Outfront Media (OUT) has strong growth characteristics that could enable it to outperform the market easily.

OUTFRONT Media's Q1 2024 earnings show an increase in revenue from billboards, but there are worries about the impact of rising operating expenses and interest costs.

The key figures for Outfront Media (OUT) offer a glimpse into the company's performance in the first quarter of 2024, but it could be beneficial to compare certain important metrics with Wall Street predictions and the numbers from the same period last year.

Outfront Media (OUT) reported quarterly funds from operations (FFO) of $0.14 per share, which was consistent with the Zacks Consensus Estimate. This is an improvement from FFO of $0.05 per share in the same quarter last year.

OUTFRONT Media's diverse advertising locations and investments in digital billboards are expected to boost its performance.