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OOH Ad Stocks Launch as Reopening Gets in Gear (IHRT, LAMR, LPTV, CCO)

The Out-of-Home ad industry. Ever heard of it? If not, chances are you’ve noticed it. Any time you pass a billboard on the highway or notice a monitor at the dentist office showing some video content, you’re experiencing it.

In short, the Out-of-Home space – or “OOH” for short – is the aspect of the advertising industry that you experience as a consumer of content outside of your home. A special exception is made for ad content you consume through your mobile device – that’s like a portable part of your “home”.

But anything outside of that definition of your home that deals in ad content is OOH advertising.

Given the decreasing costs of screens and networks, this is actually a huge growth market. Stocks in the space are also looking ahead at a huge tailwind as the economy reopens following the pandemic health crisis. Companies with assets in this space have been looking forward to a time when people might go back “out of home” after spending most of the last year firmly “in home”.

Now is the time for these stocks.

Remarkably, even during the past, many stocks in the space have been faring quite well. That suggests a secular tailwind in place as well.

With that in mind, we take a look at a few of the most interesting players in the OOH space, including iHeartMedia Inc (NASDAQ: IHRT), Lamar Advertising Company (NASDAQ: LAMR), Loop Media Inc (OTC US: LPTV), and Clear Channel Outdoor Holdings Inc (NYSE: CCO).

 

iHeartMedia Inc (NASDAQ: IHRT) frames itself as the leading audio media company in America, reaching over 250 million people each month.

It is number one in both broadcast and digital streaming radio as well as podcasting and audio ad tech and includes three segments: The iHeartMedia Multiplatform Group; the iHeartMedia Digital Audio Group; and the Audio and Media Services Group. Visit iHeartMedia.com for more company information.

iHeartMedia Inc (NASDAQ: IHRT) recently announced that, along with KIIS FM, it will kick off the Summer celebrating the history of Pop music’s legendary Summer festival, “iHeartRadio KIIS FM Wango Tango,” hosted by Ryan Seacrest on Wednesday, June 30 at 7 p.m. PT/10 p ET.

According to the release, the virtual event will feature all-new performances from Ed Sheeran and Justin Bieber, plus previous iconic Wango Tango performances from Ariana Grande, Ava Max, Britney Spears, Bruno Mars, Camila Cabello, Halsey, Jason Derulo, Jonas Brothers, Lady Gaga, Machine Gun Kelly, Mariah Carey, Maroon 5, Shawn Mendes, Taylor Swift and more. In addition, the event will also feature exclusive interviews with Ava Max, Jason Derulo, and Maroon 5.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Shares of the stock have powered higher over the past month, rallying roughly 17% in that time on strong overall action.

iHeartMedia Inc (NASDAQ:I HRT) generated sales of $706.7M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -24.5% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($529.1M against $733.5M, respectively).

 

Lamar Advertising Company (NASDAQ: LAMR) promulgates itself as one of the largest outdoor advertising companies in North America, with over 351,000 displays across the United States and Canada.

Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 3,600 displays.

Lamar Advertising Company (NASDAQ: LAMR) recently announced its operating results for the first quarter ended March 31, 2021, including the fact that total operating expenses decreased 9.0%, the company recorded an adjusted EBITDA margin of 41.1%, free cash flow increased 10.6%, and diluted AFFO per share increased 2.7%.

“The advertising rebound is well underway,” Lamar chief executive Sean Reilly said. “Both local and national sales activity have accelerated, with digital showing particular strength. In fact, bookings in March and April for the rest of 2021 handily exceeded bookings in the same months of 2019 for the rest of that year. As a result, we are raising our previously provided guidance for full-year diluted AFFO per share to a range of $5.40 to $5.60.”

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 3% in that timeframe.

Lamar Advertising Company (NASDAQ: LAMR) managed to rope in revenues totaling $370.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of -8.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($43M against $0).

 

Loop Media Inc (OTCMKTS: LPTV) is a leading provider of branded music video and entertainment streaming services for businesses and consumers. Through its proprietary Loop Player for businesses and interactive mobile and TV apps for consumers, Loop Media is the only company in the U.S. licensed to stream music videos directly to consumers and venues out of home.

Loop Media’s content reaches thousands of out-of-home (OOH) locations including hotels, bars/restaurants, office buildings, and retail businesses, as well as millions of consumers in the U.S., Canada, and Latin America through its apps for iOS, Android, and Huawei, as well as connected TVs and Smart TVs. To date, these include Amazon Fire TV, Android TV, AT&T TV, Hisense, JVC, LG, Philips, Roku, Sharp, Sony, Toshiba, VIZIO, and free ad-supported TV platforms TIVO+, Plex, DistroTV, and GSTV.

Loop Media Inc (OTCMKTS: LPTV) recently announced the addition of several new premium video content channels and genres for its out-of-home Loop for Business service.

According to the release, joining one of the largest music video libraries already available to OOH clients, Loop Media has now added an Action Sports channel through its partnership with FuelTV, the global home of action sports, as well as a channel dedicated to the enormously popular world of sneakers through its partnership with snkrINC, a media brand catering to sneaker fans and enthusiasts around the world. In addition, its recent partnership with VideoElephant, a global aggregator and distributor of online video content, will allow Loop Media to extend its content offering to include a range of new thematic categories, including Entertainment and World News, Food and Travel, Celebrity and Gossip, Fitness and Health, and Combat Sports such as MMA and boxing.

“These recent partnerships illustrate Loop Media’s focus on providing the best in class content for all our out of home clients,” said Greg Drebin, Chief Content and Marketing Officer at Loop Media.  “We are constantly looking to expand our music and non-music channels to target genres and subjects that will help our clients enhance their customer experience and environment through Loop for Business.”

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.

Loop Media Inc (OTCMKTS: LPTV) pulled in sales of $794K in its last reported quarterly financials, representing huge top-line growth of 6938.1%.

 

Clear Channel Outdoor Holdings Inc (NYSE: CCO) frames itself as one of the world’s largest outdoor advertising companies with a diverse portfolio of more than 500,000 print and digital displays in 31 countries across North America, Europe, Latin America, and Asia, reaching millions of people monthly. A growing digital platform includes more than 17,000 digital displays in international markets and more than 2,000 digital displays (excluding airports), including more than 1,400 digital billboards, in the U.S.

Comprised of two business divisions – Clear Channel Outdoor Americas (CCOA), the U.S. and Caribbean business division, and Clear Channel International (CCI), covering markets in Europe, Latin America, and Asia – CCO employs approximately 4,700 people globally.

Clear Channel Outdoor Holdings Inc (NYSE: CCO) recently financial results for the quarter ended March 31, 2021, including revenues in its American segment of $211.9 million compared to $295.8 million in the year-ago quarter.

“During the first quarter, we continued to execute on our strategy to maximize the revenue potential of our global portfolio and optimize our ability to take full advantage of the economic recovery,” said William Eccleshare, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “Our financial results were in line with our expectations and reflect the continued impact of the pandemic on global advertising spend coupled with a tough comparison against our strong performance in the comparable period last year. We are beginning to see improvement in mobility and advertising activity across many of our markets as the vaccination process gains traction and restrictions are eased. We expect the market environment to continue to improve as the year progresses, with consolidated revenue returning to growth in the second quarter as compared to the prior year.

Even in light of this news, CCO hasn’t really done much of anything over the past week, with shares logging no net movement over that period.

Clear Channel Outdoor Holdings Inc (NYSE: CCO) pulled in sales of $370.9M in its last reported quarterly financials, representing top-line growth of -32.7%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($643.4M against $1B, respectively).

 

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