According to our database of transactions in billboards, prices declined for the second straight year in 2003. The average multiple of gross effective income dropped from 5.73X in 2002 to 5.12X last year. Declines were also observed for the past two years in the median multiples. Billboard prices peaked in 1998 according most measures, but
By Jeffrey P. Wright, ASA, CFA Abstract Billboard companies are usually worth surprisingly high prices in the market. Buyers and sellers rely almost exclusively on market multiples that are widely recognized as the best measures of fair market value. Discount rates and capitalization rates in this industry are more closely aligned with real estate yields
On February 13, 2003, Lamar Advertising Company reported its fourth quarter and full-year earnings for 2002, with improvements over the same periods in 2001. Revenue from airport advertising picked up in the final three months of the year, which boosted full-year results. Net revenue increased 9% in the fourth quarter compared to 2001, and revenue
Billboard owners sometimes find it difficult to obtain financing from banks that are not familiar with the industry. Even if owners take the time to educate lenders about the outdoor advertising business, banks may not be willing to lend to industries where they are not experienced. However, once bankers understand that billboards typically generate high
Obie Media Corporation reported financial results for the third quarter of their fiscal year that ends November 30. Billboard revenue was down 6% from $1,780,273 last year to $1,674,650 in the three-month period of 2002. Management attributes lower billboard revenue over the past year to the economic recession and the terrorist attacks in New York
Competitive Media Reporting (CMR), which keeps statistics on advertising, reported that spending on ads in the U.S. during the first half of 2002 declined 0.2% from the same period in the previous year. Total spending is estimated at $53.7 billion from January through June. The definition of ad spending covers 12 types of media. The
The term “outdoor” advertising meant billboards in the old days, before advertising became so ubiquitous and increasingly aggressive. People could actually choose to spend a day without encountering some form of advertising. With the growth of advertising across many media in the past few decades, the term “outdoor” expanded to include many ads other than
Lamar Advertising Company reported that revenue was up 6% in the second quarter and earnings were also in positive territory. Quarterly revenue reached $202,529,000 compared to $191,788,000 in the same period of 2001. The figures include income from acquisitions in the past 12 months. When revenue is examined for billboards that have been owned for
Sees Better Advertising Market Ahead On July 15, 2002, Obie Media reported that earnings are holding up fairly well and the weak advertising market may have bottomed out. The company reported flat revenue from billboard advertising for the first six months of its current fiscal year that ends November 30, 2002. During the six months
