OUTFRONT Media Concludes Sale of Sports-Marketing Business
OUTFRONT Media Inc. OUT recently announced the sale of its sports-marketing business to Playfly Sports, the full-service sports-marketing company. The terms of the deal were not disclosed.
Following the development, as well as amid broader market issues, shares of the company depreciated 5.5% during Friday’s trading session.
OUTFRONT Media’s sports-marketing segment is the holder of marketing and multimedia rights for a number of colleges, universities and other educational institutes across the United States.
The performance of the company’s sports-marketing segment has borne the brunt of the coronavirus pandemic. This has resulted from lower demand due to the cancellation of spring sporting activities in various colleges and universities across the nation.
In fact, the pandemic has hit the overall outdoor-advertising industry hard. There has been a significant dent in advertising values due to reduced outdoor travel. The company’s second-quarter performance was significantly affected due to the decline in demand for its services and fall in customer-advertising spends. Moreover, given the current choppiness in the economy and the uncertainty about reopening amid still-high infection rates, any notable turnaround is unlikely in the near term. Nevertheless, management expects the impact of the pandemic to be lower for the rest of the year than in the second quarter.
Over the past year, shares of OUTFRONT Media have depreciated 41.1% compared with the 6.6% decline of the industry it belongs to.
Currently, OUTFRONT Media carries a Zacks Rank #4 (Sell).
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