OUTFRONT Media's Q2 AFFO Beats Estimates, Revenues Miss

Core Insights - OUTFRONT Media Inc. reported second-quarter 2025 adjusted funds from operations (AFFO) per share of 51 cents, exceeding the Zacks Consensus Estimate of 46 cents, and showing a slight increase from 50 cents a year ago [1][9] - The company's quarterly revenues were $460.2 million, which was a 3.6% decrease year over year and slightly missed the Zacks Consensus Estimate [2] Revenue Breakdown - Billboard revenues for the quarter totaled $351.3 million, reflecting a year-over-year decline of 2.5%, attributed to lost billboards, although partially offset by higher proceeds from condemnations and increased average revenue per display [3] - Transit revenues increased by 5.6% year over year to $106.3 million, driven by higher average revenue per display, despite the impact of new and lost transit franchise contracts [4] Operating Performance - Operating income for the second quarter was $56.2 million, a significant decrease from $229.1 million in the same quarter last year [4] - Operating expenses decreased by 3.5% year over year to $231.5 million, primarily due to lower variable property lease expenses [5] - Net interest expenses fell by 11.2% to $36.5 million, attributed to a lower average debt balance and interest rates, with a weighted average cost of debt of 5.4% [6] Cash Flow and Balance Sheet - As of June 30, 2025, the company had unrestricted cash of $28.5 million and $494.7 million available under its $500 million revolving credit facility, with total debt outstanding at $2.6 billion [7] - No shares were sold under the at-the-market equity program during the quarter, leaving $232.5 million available under the program [8] Dividend Announcement - OUTFRONT Media declared a quarterly cash dividend of 30 cents per share, payable on September 30 to shareholders of record [9]