Leaving on a high note

Clear Channel's August 5 second-quarter report showed the billboard and airport ad company speeding up just as it heads for the exit. A Mubadala Capital-advised consortium is buying it at $2.43 a share.

Every segment is humming

Revenue rose 8.7% to $438 million in the quarter and 10.2% to $811.9 million for the half. The 2026 World Cup pulled extra ad spend into both segments.

Airports outran the roadside

Airports revenue jumped 14% to $113.6 million on strong demand at San Francisco International, with digital sales up 15.6%. The America billboard division grew 7% to $324.3 million.

Cash flow nearly doubled

Adjusted EBITDA rose 11.6% to $143.4 million, and AFFO climbed 61.6% to $44.9 million. First-half AFFO went from $5 million to $51.5 million.

The bottom line still bleeds

The company posted a $5 million net loss against $10.6 million of net income a year earlier. Airport site lease costs rose 12% to $67.1 million and corporate expenses jumped 17.5%.

Interest eats everything

Net interest expense hit $99 million for the quarter, with $205.8 million of cash interest paid in six months and about $394 million due in 2027. Total debt sits at $5.1 billion.

“With the Merger pending, that debt load is not Clear Channel's problem to solve as a public company for much longer.”

Wall Street watches the deal

Hedge fund holders fell from 47 to 34 in a quarter and short interest sits at 9.58% of float. Investors are pricing deal risk, not the operating numbers.