Company: CCO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001334978-25-000008
Chunk: 78

Company: Clear Channel Outdoor Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 78
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 the remainder coming from local sales.

America Direct Operating Expenses

America direct operating expenses increased by $6.0 million, or 1.4%, in 2024 compared to 2023, driven by higher production, installation and maintenance costs largely due to revenue growth. These increases were partially offset by lower site lease expense driven by the renegotiation of an existing contract and a decrease in estimated lessor property taxes in certain lease arrangements.

In 2023, America direct operating expenses increased by $25.6 million, or 6.2%, compared to 2022. This increase was primarily due to higher site lease expense driven by lease renewals and amendments, including the renegotiation of a large existing site lease contract, and lower rent abatements.

The table below provides information about America site lease expense and rent abatements:

(In thousands)Years Ended December 31,202420232022Site lease expense$346,171 $348,229 $322,725 Reductions of rent expense on lease and non-lease contracts from rent abatements60 6,439 14,847 

33

America SG&A Expenses

America SG&A expenses increased by $17.1 million, or 8.7%, in 2024 compared to 2023, largely due to higher employee compensation costs, driven by higher variable-incentive compensation, increased sales headcount and pay increases. Additionally, property tax expense was lower in the prior year due to a $4.7 million refund from a legal tax settlement.

In 2023, America SG&A expenses decreased by $0.2 million, or 0.1%, compared to 2022, driven by the $4.7 million property tax refund. This decrease was offset by higher employee compensation, marketing and information technology costs.

Airports Results of Operations

(In thousands)Years Ended December 31,202420232022Revenue$361,488 $311,605 $256,402 Direct operating expenses(1)235,772 208,442 163,638 SG&A expenses(1)37,954 34,941 31,900 Segment Adjusted EBITDA87,860 68,226 60,864 

(1)Includes restructuring and other costs that are excluded from Segment Adjusted EBITDA.

Airports Revenue

Airports revenue increased by $49.9 million, or 16.0%, in 2024 compared to 202