Lamar trims capex, but digital’s share grows
Investment in new digital billboards by Lamar Advertising in the U.S. stayed low during the second quarter, with the company spending just $3.9m compared with $24.8m in the same period the previous year.
In the first quarter of 2009 it had spent $4.3m on digital, slightly more than in the second quarter.
However, digital’s share of total billboard investment by Lamar has been growing dramatically. During the quarter ending 30 June the company spent only $2.2m on traditional billboards, or little more than half the amount it committed to digital sites, while in the same quarter last year it had spent $21.3m on traditional billboards, roughly the same amount as on the newer technology.
The gap between digital and non-digital investment by Lamar has been steadily increasing in recent quarters, and despite total capital expenditure nosediving as economic conditions have worsened, digital billboards have remained the largest category of capex.
The firm reported net revenue of $274.4m for the second quarter, down 15.2 percent on the same period a year ago, and EBITDA of $121.5m, down 18.9 percent.
www.lamar.com
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