SAN ANTONIO–(BUSINESS WIRE)–Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) today reported financial
results for the fourth quarter and year ended December 31, 2018.

“Throughout 2018 favorable trends in the out-of-home sector, especially
in the U.S., have combined with our strategic initiatives to deliver
growth across our businesses,” said Bob Pittman, Executive Chairman and
Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “Our
commitment to creating smarter out-of-home advertising solutions by
expanding our innovative assets, providing data-backed insights and
empowering our sales teams are generating superior results for our
advertising partners. We believe these strategic investments will
provide Clear Channel Outdoor’s experienced new Board of Directors and
strong leadership team with the foundation for future growth and success
when it becomes a standalone public company.”

“We are pleased to report consolidated revenue, operating income, and
adjusted OIBDAN increased for the full year, including the fourth
quarter,” said Rich Bressler, Chief Financial Officer of Clear Channel
Outdoor Holdings, Inc. “We believe the steps we have taken to strengthen
Clear Channel Outdoor’s operations through the investments in our
strategic initiatives and our financial discipline led to the strong
results this year and the recent successful refinancing of the $2.2
billion of Senior Subordinated Notes.”

Key Financial Highlights

The Company’s key financial highlights for the fourth quarter of 2018
include:

• Consolidated revenue increased 2.6%. Consolidated revenue increased
  5.0% after adjusting for a $17.3 million impact from movements in
  foreign exchange rates.
  • Americas revenues increased $23.4 million, or 7.6%.
  • International revenues decreased $4.3 million, or 1.0%. Revenues
    increased $13.0 million, or 3.1%, after adjusting for a $17.3
    million impact from movements in foreign exchange rates.
• Operating income increased 20.4% to $116.5 million resulting from
  revenue growth in our Americas business.
• OIBDAN decreased 0.5%. OIBDAN increased 1.4%, excluding the impact
  from movements in foreign exchange rates.

The Company’s key financial highlights for 2018 include:

• Consolidated revenue increased 5.1%. Consolidated revenue increased
  4.5%, after adjusting for a $30.5 million impact from movements in
  foreign exchange rates and the $13.7 million impact of the sale of our
  business in Canada in the third quarter of 2017.
  • Americas outdoor revenues increased $28.3 million, or 2.4%.
    Revenues increased $42.0 million, or 3.7%, after adjusting for a
    $13.7 million impact from the sale of Canada in the third quarter
    of 2017.
  • International outdoor revenues increased $104.7 million, or 7.3%.
    Revenues increased $74.2 million, or 5.2%, after adjusting for a
    $30.5 million impact from movements in foreign exchange rates.
• Operating income increased 8.4% to $251.8 million.
• OIBDAN increased 7.1% and increased 7.2%, excluding the impact from
  movements in foreign exchange rates.

Key Non-Financial Highlights

The Company’s key fourth quarter non-financial highlights include:

• Adding 29 new digital billboards in the fourth quarter in the United
  States for a total of 1,285 and 446 new digital displays in the fourth
  quarter in our International markets for a total of over 13,500
  digital displays.

Expanding placement of innovative media assets:

• Renewing the partnership with Tallahassee International Airport with a
  five-year contract expansion and planned installation of a new media
  network, including two LED video walls at arrivals and baggage claim.
• Extending the agreement with the city of Rio, Brazil for another
  seven-years to continue operating 2,200 panels and screens. These
  assets cover some of the most important areas of Rio, including the
  Ipanema and Copacabana beaches, giving advertisers the ability to
  reach and engage audiences across the city.
• Building the UK’s largest single digital OOH network with Adshel Live
  digital street furniture, which now includes over 1,700 screens
  throughout the UK.

Bolstering our solutions for advertisers:

• Partnering with San Diego International Airport with a new ten-year
  contract that includes cutting-edge digital media. Combining this new
  contract with the San Diego Metropolitan Transit System contract
  enables – Americas Outdoor to reach 99% of the San Diego DMA.
• Announcing Clear Channel Spain’s new two and a half year contract to
  operate advertising across the “Las Tablas – Sanchinarro” line of the
  Metro Ligero de Madrid light rail network. The contract extends Clear
  Channel’s network of advertising solutions across Madrid to include
  advertising on the network’s stations and stops, and the exterior of
  trains.
• Signing the contract with Transdev to operate advertising across the
  transport network in Saint-Etienne, France.

Winning recognition for campaigns:

• Earning the OOH Association of America “OOH Ratings-Driven Media Plan
  Award for the Northern California Honda dealers’ campaign that used
  RADAR, our industry leading data analytics suite of products, to
  combine targeted print posters with mobile ads sent to consumers. This
  campaign resulted in an 80% lift in visitors to participating dealers.
• Being honored by National League of Cities with the “Service to Cities
  Award” for Americas Outdoor’s outstanding contributions to cities
  across the nation through the use of digital billboards to raise
  awareness of the country’s critical infrastructure gap. This campaign
  helped municipal governments fight for federal investment.
• Nivea Receiving the Gold award in the “Best Tactical Campaign”
  category at Spain’s Eficacia Awards using Clear Channel Spain’s
  dynamic DOOH campaign. The inventory used a warning system -which
  reported live pollution, temperature and UV levels – to trigger real
  time ads inviting consumers to go to the nearest point of sale and
  purchase the relevant product from Nivea. The campaign generated sales
  increases of 42% in Barcelona and 23% in Madrid.

GAAP Measures by Segment

¹Direct Operating and SG&A Expenses as included throughout
this earnings release refers to the sum of Direct operating expenses
(excludes depreciation and amortization) and Selling, general and
administrative expenses (excludes depreciation and amortization).

²Includes Corporate depreciation and amortization of $1.0
million and $1.0 million for the three months ended December 31, 2018
and 2017, respectively, and $3.9 million and $5.1 million for the years
ended December 31, 2018 and 2017, respectively.

Non-GAAP Measures¹ (see preceding table for
comparable GAAP measures)

Certain prior period amounts have been reclassified to conform to the
2018 presentation of financial information throughout the press release.

Fourth Quarter 2018 Results

Consolidated

Consolidated revenue increased $19.2 million, or 2.6%, during the fourth
quarter of 2018 as compared to the fourth quarter of 2017. Consolidated
revenue increased $36.5 million, or 5.0%, after adjusting for a $17.3
million impact from movements in foreign exchange rates.

Consolidated direct operating and SG&A expenses increased $17.0 million,
or 3.4%, during the fourth quarter of 2018 as compared to the fourth
quarter of 2017. Consolidated direct operating and SG&A expenses
increased $30.2 million, or 6.1%, in the fourth quarter, after adjusting
for a $13.3 million impact from movements in foreign exchange rates.

Consolidated operating income increased 20.4% to $116.5 million during
the fourth quarter of 2018 as compared to the fourth quarter of 2017,
due to revenue growth in our Americas business.

The Company’s OIBDAN decreased 0.5% to $192.2 million during the fourth
quarter of 2018 as compared to the fourth quarter of 2017. The Company’s
OIBDAN increased 1.4% in the fourth quarter of 2018 compared to the same
period of 2017, after adjusting for movements in foreign exchange rates.

Americas

Americas revenue increased $23.4 million, or 7.6%, during the fourth
quarter of 2018 as compared to the fourth quarter of 2017. The increase
in revenue was due to higher digital, print and airport revenue.

Direct operating and SG&A expenses increased $9.8 million, or 5.4%,
during the fourth quarter of 2018 as compared to the fourth quarter of
2017. The increase was primarily due to higher employee compensation
expense, including variable compensation plans, and higher site lease
expense related to higher revenue.

Operating income increased 30.8% to $98.9 million during the fourth
quarter of 2018 as compared to the fourth quarter of 2017. OIBDAN
increased $13.7 million, or 11.0%.

International

International revenue decreased $4.3 million, or 1.0%, during the fourth
quarter of 2018 as compared to the fourth quarter of 2017. Revenue
increased $13.0 million, or 3.1%, after adjusting for a $17.3 million
impact from movements in foreign exchange rates. The increase in revenue
is due to growth in multiple countries, including Sweden, France, Spain
and Norway, as well as the United Kingdom, primarily from new
deployments and digital expansion, offset by a decrease in revenue in
China due to lower occupancy, impacted by a general economic slow-down
in the country.

Direct operating and SG&A expenses increased $7.2 million, or 2.3%,
during the fourth quarter of 2018 as compared to the fourth quarter of
2017. Direct operating and SG&A expenses increased $20.5 million, or
6.5%, after adjusting for a $13.3 million impact from movements in
foreign exchange rates. Direct operating and SG&A expenses increased
primarily due to higher site lease expenses and employee compensation in
countries experiencing revenue growth.

Operating income decreased 10.2% to $58.8 million during the fourth
quarter of 2018 as compared to the fourth quarter of 2017. OIBDAN
decreased $11.5 million, or 11.0%. OIBDAN decreased $7.4 million, or
7.1%, during the fourth quarter of 2018, after adjusting for a $4.1
million impact from movements in foreign exchange rates.

Clear Channel International B.V. (“CCIBV”)

CCIBV’s consolidated revenue increased $9.2 million to $330.4 million in
the fourth quarter of 2018 compared to the same period in 2017. This
increase includes a $12.1 million impact from movements in foreign
exchange rates. Excluding the impact from movements in foreign exchange
rates, CCIBV revenue increased $21.3 million during the fourth quarter
of 2018 as compared to the same period in 2017.

CCIBV’s operating income was $33.8 million in the fourth quarter of 2018
compared to an operating income of $22.4 million in the same period in
2017.

Full Year 2018 Results

Consolidated

Consolidated revenue increased $133.0 million, or 5.1%, during 2018 as
compared to 2017. Consolidated revenue increased $116.2 million, or
4.5%, after adjusting for a $30.5 million impact from movements in
foreign exchange rates and the $13.7 million impact of the sale of our
business in Canada.

Consolidated direct operating and SG&A expenses increased $84.6 million,
or 4.4%, during 2018 as compared to 2017. Consolidated direct operating
and SG&A expenses increased $68.4 million, or 3.6%, during 2018 as
compared to 2017, after adjusting for a $29.8 million impact of
movements in foreign exchange rates and the $13.6 million impact of the
sale of our business in Canada.

Consolidated operating income increased 8.4% to $251.8 million, during
2018 as compared to 2017. The Company’s OIBDAN increased 7.1% to $584.5
million during 2018 as compared to 2017. After adjusting for the
movements in foreign exchange rates and the impact of the sale of our
business in Canada, the Company’s OIBDAN increased 7.2% in 2018 compared
to 2017.

Americas Outdoor

Americas outdoor revenue increased $28.3 million, or 2.4%, during 2018
as compared to 2017. Revenue increased $42.0 million, or 3.7%, after
adjusting for a $13.7 million impact from the sale of our business in
Canada. This increase was driven by higher digital and print revenue.

Direct operating and SG&A expenses decreased $0.6 million, or 0.1%,
during 2018 as compared to 2017. Direct operating and SG&A expenses
increased $13.0 million, or 1.8%, after adjusting for the $13.6 million
impact from the sale of our business in Canada. These increases were
driven primarily by higher site lease expense and employee compensation,
including variable compensation plans.

Operating income increased 16% to $298.2 million during 2018 as compared
to 2017 as a result of revenue growth. OIBDAN increased $28.9 million,
or 6.6%. OIBDAN increased 6.6% during 2018 as compared to 2017, after
adjusting for the $0.1 million impact from the sale of our business in
Canada.

International Outdoor

International outdoor revenue increased $104.7 million, or 7.3%, during
2018 as compared to 2017. Revenue increased $74.2 million, or 5.2%,
after adjusting for a $30.5 million impact from movements in foreign
exchange rates. The increase in revenue is due to growth in multiple
countries, including Sweden, China, Spain, Switzerland, Ireland, France,
Finland and the United Kingdom, primarily from new deployments and
digital expansion.

Direct operating and SG&A expenses increased $85.2 million, or 7.2%,
during 2018 as compared to 2017. Direct operating and SG&A expenses
increased $55.4 million, or 4.7%, after adjusting for a $29.8 million
impact from movements in foreign exchange rates. These increases were
primarily driven by higher site lease expenses related to new contracts
and higher revenues, as well as higher employee-related expenses in
countries experiencing growth.

Operating income increased 12.9% to $114.9 million during 2018 as
compared to 2017. OIBDAN increased $19.5 million, or 8.0%. OIBDAN
increased $18.8 million, or 7.7%, during 2018 as compared to 2017, after
adjusting for a $0.7 million impact from movements in foreign exchange
rates.

Clear Channel International B.V. (“CCIBV”)

CCIBV’s consolidated revenue increased $94.4 million to $1,173.6 million
in 2018 compared to 2017. This increase includes a $30.1 million impact
from movements in foreign exchange rates. Excluding the impact from
movements in foreign exchange rates, CCIBV revenue increased $64.3
million during 2018 as compared to 2017.

CCIBV’s operating income was $22.4 million in 2018 compared to operating
loss of $10.6 million in 2017. The increase was primarily due to an
increase in revenue.

Liquidity and Financial Position

As of December 31, 2018, we had $182.5 million of cash on our balance
sheet, including $162.4 million of cash held outside the U.S. by our
subsidiaries. For the year ended December 31, 2018, cash provided by
operating activities was $187.3 million, cash used for investing
activities was $203.6 million, cash provided by financing activities was
$40.7 million, and there was a $9.8 million decrease that resulted from
the impact from movements in foreign exchange rates on cash. The net
increase in cash, cash equivalents and restricted cash from December 31,
2017 was $14.6 million.

Capital expenditures for the year ended December 31, 2018 were $211.1
million compared to $224.2 million for the same period in 2017.

On January 24, 2018, we made a demand for repayment of $30.0 million
outstanding under the Due from iHeartCommunications Note and
simultaneously paid a special cash dividend of $30.0 million.
iHeartCommunications received approximately 89.5%, or approximately
$26.8 million, of the proceeds of the dividend through its wholly-owned
subsidiaries, with the remaining approximately 10.5%, or approximately
$3.2 million, of the proceeds of the dividend paid to our public
stockholders.

At December 31, 2018, the principal amount outstanding under the Due
from iHeartCommunications Note was $1,031.7 million. As a result of the
voluntary petition by iHeartMedia, iHeartCommunications and certain of
their subsidiaries for reorganization under Chapter 11 of the United
States Bankruptcy Code (the “iHeart Chapter 11 Cases”), CCOH recognized
a loss of $855.6 million on the Due from iHeartCommunications Note
during the fourth quarter of 2017 to reflect the estimated recoverable
amount of the note as of December 31, 2017, based on management’s best
estimate of the cash settlement amount. As of December 31, 2018 and
December 31, 2017, the asset recorded in “Due from iHeartCommunications”
on our consolidated balance sheet was $154.8 million and $212.0 million,
respectively.

Pursuant to a final order entered by the Bankruptcy Court, as of March
14, 2018, the actual pre-iHeart bankruptcy balance of the Due from
iHeartCommunications Note is frozen, and following March 14, 2018,
intercompany allocations that would have been reflected in adjustments
to the balance of the Due from iHeartCommunications Note are instead
reflected in a new intercompany balance that accrues interest at a rate
equal to the interest under the Due from iHeartCommunications Note. The
Bankruptcy Court approved a final order to allow iHeartCommunications to
continue to provide the day-to-day cash management services for us
during the iHeart Chapter 11 Cases and we expect it to continue to do so
until such arrangements are addressed through the iHeart Chapter 11
Cases. As of December 31, 2018, we owed $21.6 million to
iHeartCommunications under the intercompany arrangement with
iHeartCommunications. As described in our Annual Report on Form 10-K,
pursuant to the Settlement Agreement, we agreed that we will recover
14.44%, or approximately $149.0 million, in cash on our allowed claim of
$1,031.7 million under the Due from iHeartCommunications Note. In
addition, iHeartCommunications agreed to waive the set-off for the value
of the intellectual property transferred, including royalties and the
repayment of the post-petition intercompany balance outstanding in favor
of the iHeartCommunications as of December 31, 2018.

On June 1, 2018, Clear Channel Outdoor, Inc. (“CCO”), a subsidiary of
ours, refinanced the Company’s senior revolving credit facility with a
receivables-based credit facility that provides for revolving credit
commitments of up to $75.0 million. On June 29, 2018, CCO entered into
an amendment providing for a $50.0 million incremental increase of the
facility, bringing the aggregate revolving credit commitments to $125.0
million. The facility has a five-year term, maturing in 2023. As of
December 31, 2018, the facility had $94.4 million of letters of credit
outstanding and a borrowing base of $125.0 million, resulting in $30.6
million of excess availability. Certain additional restrictions,
including a springing financial covenant, take effect at decreased
levels of excess availability.

In February 2019, a wholly-owned subsidiary of ours issued $2,235.0
million of new 9.25% Senior Subordinated Notes due 2024. Proceeds from
the new notes were used to pay and discharge the principal amount
outstanding and accrued and unpaid interest on the $275.0 million
aggregate principal amount of 7.625% Series A Senior Subordinated Notes
Due 2020 and $1,925.0 million aggregate principal amount of 7.625%
Series B Senior Subordinated Notes Due 2020 through a redemption date of
March 6, 2019.

Conference Call

The Company will host a conference call to discuss results on March 5,
2019 at 4:30 p.m. Eastern Time. The conference call number is (800)
230-1074 (U.S. callers) and (612) 234-9959 (International callers) and
the passcode for both is 463556. A live audio webcast of the conference
call will also be available on the investor section of www.clearchanneloutdoor.com

Contacts

Media
Wendy Goldberg
Executive
Vice President – Communications
(212) 377-1105

Investors
Eileen McLaughlin
Vice
President – Investor Relations
(212) 377-1116

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