CCO - Earnings call transcript Q1 2021 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Clear Channel Outdoor Holdings, Inc.

First Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note this call may be recorded. And I'll now turn the conference over to your host, Eileen McLaughlin, Vice President of Investor Relations. ahead. go Please

Eileen McLaughlin

thank XXXX and joining Channel Clear Good quarter you earnings Holdings first call. Outdoor morning, for

for On the quarter Coleman, call of today Channel a overview Outdoor open Holdings, are William Eccleshare, provide will performance will and Outdoor portion of Clear Channel International and line review up our Channel an Inc., an Clear Inc.; and of the B.V. of Chief Inc., Officer Holdings, introduction Channel who Clear participate the Wells, Chief Holdings, and we'll of operating Financial Brian results, first the of Chief Q&A Executive questions of Scott After Clear call. in Officer Outdoor XXXX the Channel Executive Officer Americas, Clear Outdoor

be not I'd There that management's achieved of includes in everyone that assurance projections release begin, actual be we projections our the the earnings this include expectations, remind beliefs. from and to statements. risks forward-looking performance Please differ beliefs like results current could statements contained SEC. call about press management's management's and expectations, review statements that These no represents or conference with expectations. filings beliefs and or will Before will

conference They items, adjusted non-cash exchange our EBITDA and to presentation of information. breakdown note the website on in and provide important we press which can the are on other provide GAAP revenue schedules as earnings call, results Accounting conference Principles. a that with basis performance found available that as measures and our section do measures our We call. earnings as of of release, reconcile that detailed earnings segment earnings slide Please a integral financials conform expense today's our and our call among During will reported be our are compensation provided to certain part not well Generally and website, Accepted the these also investor.clearchannel.com. foreign presentation, non-GAAP release

provided call you management's on and as in now view William only XX, note the this on that and ask we With X reason, information each William and at of Brian as comment no to time please speaks Also, the I them. the that For May Page slide that, today, views longer of the replay. presentation, turn Eccleshare. please accurate call over to will XXXX a turn to may that be

William Eccleshare

and you to thank everyone join taking morning, time Good today's the for call.

with performance, During dollars global amount increasing near of quarter, our plan an continue recovery the the to capture hold. our our to first the as advertising of while execute takes term we maximizing on strategic strengthening goal ability

compared revenue Our of first a quarter the only you the first the excluding revenue tough reflected delivered consolidated in for our COVID-XX. line prior American three by remarks. impacted million, my our XXXX, we details down with results provided. And will which minimally walk and China our year, strong We first to through guidance performance against XX% performance segment of $XXX were following quarter FX. of comparison was in Brian months the previously

made being sentiment with to among hearing are across the our we levels well mobility Looking increasing regard of as encouraged progress positive of the remain process, we markets, the as advertisers. vaccination ahead, by and many

important proposition our the gains investments strategic our recovery advertisers. year-over-year in growth revenue in elevate of revenue universe as investments print as now position These the broader primarily the rebound value expected, as a our our monetize strengthening and digital traction. our are centered platform, return by making As we to result our believe seeing are drive we're the as business now stronger of of ability global growing to amongst assets well several the year, a in are we to driven balance business, growth Most we through markets.

to continue presence and into in RADAR we the programmatic our increasing of strategically space. our expand our analytics data portfolios suite integrate while products Specifically,

but of to assets. set brands to more agencies locations us deliver to we to with audiences. and consumer actionable them are clients of continue specific of just manner. provided a our The discussions reach the specific footprint insights greater another with advertisers, beyond the pandemic the has value broadening reach while journeys creative ability a audiences change, we our our demonstrate Put as of usefulness seamless the in We way, and valuable these outdoor ideas emphasizing targeting data, selling seek

Brian costs ability As initiatives. we revenue our provide drive our also in cash savings an growth, flow. will update focus on on have and our to strengthening cost diligent managing we remained

for positioned Now, progresses we of is purchasing. for business out more due continues as is some remains Americas weighing May, as as We let Entering comfortable margin to each the recovery and about $XXX expect our advertisers as transit beginning on challenged business this the this but information segments Americas. me million provide see performance. ad the restaurants increasingly economy of lifted. Comprised to the on are is revenues seeing can our have we the second which process, recovery increases. attribute in on key and restrictions, of the improve. while are on benefit amusements with audiences the we the improvement, with volume believe capacity some between prospect Based and we year quarter. they be lag pick vaccination opening Further, it primarily are million first EBITDA sustained seeing fact our in business lag a to well our such travel uptick from to restrictions improving and we brief quarter, $XXX with airports, and categories adjusted remain bookings the with But sequentially more Based become rates between that a unfold. data, up the emerging primary notable mobility update that will there some patterns to ad as

resort the and services. beverages, also We're and in an see to to in the current Looking beginning value in is a theatrical increase welcome of cutting this an largest summer, which particular and include showing sign see three Categories displays, latest of They number home ahead, we business activity, added on first represent premium total Strip. visibility we quarter, insurance upturn the Vegas quarter, convention launched XXX,XXX RFPs. billboards digital example are strengths across to United the the the than of progress one digital full of new of XXXX announced the and giving Las the big opening economy regard of of on Resorts the the is signage. related digital the centered opening signage, of the partnership Vegas. building exterior opportunity digital return recently In digital conjunction square the our the of of economy. with States. in with An in edge to of displays include is LED out World our in the more delivering offering opening motion the a in With reflected feet over investments, maximizing U.S. we technology the continuing advertisers billboards XX

to radar our analytics, at consumer partnerships of continue further and on making. aimed our also measuring through data improving platform decision We strengthen impact our the assets

real for RADAR-Proof attribution omni-channel our Kochava, attribution measurement. We by leading the audience with leading data company time partnering solution solutions have and strengthened

power that as brands by demonstrate continuing the in visits, helps programmatic SSPs, expansion, such offering our with make will digital notable the platform bodes programmatic year-over-year we're innovative for small future. of multiple enabling user off progress buyers app integration in advertising the from the base. our to metrics, engagement, on their downloads. are programmatic a influencing on Our is progress they ad compelling the and units considerable understand to Through is digital us still quarter better budget. to in Revenue kind consumers impact website in well And it's buyside We're to move. although our key increasingly platform same the data combined This out-of-home the be of ad that the firm while also utilize space. increased first digital early spend accessible making

exchange. we revenues $XXX second Turning quarter and business we Europe, be to impact information foreign of on excluding to based our today, expect million, have segment $XXX between the million in the

over of of varies our are of virus U.K., variants started non-essential open the different concerns May all our up Americas, across driven X XX. and As of also country rates well largest by the vaccination the In to see markets continent. retail terms government with of the the March, pace introduces in to middle new Meanwhile, a But mobility our additional delaying see markets, some ease where other picking of at cases activity country. Restrictions of exceeding particularly differing the various in differing of largest have following the to Europe, supported vaccination the up, signs in the promising to from second opening we recovery volatility continuing in the and restrictions onset in on the end XX%. French continuing rate Phase now variants market, schools momentum quarter. with the is and opening attitudes France, of European in recovery reopen some underway, by we're parts countrywide to to our in to increase an are market second

the six in bookings ahead XXXX. our comparable Over the generated period weeks U.K. of business last

the also pent-up wide digital roadside proud audience the from of from locations our of judges at continued spread As supporting as a U.K. to that coveted programs premium Year challenges and among U.K. The we well scale note Awards. demand I'm on Clear focused our Campaign our benefit as to advertisers was benefit to through of Commercial pandemic. proactive inventory the reach outstanding Team business network. by the unprecedented recognized presented awarded team the Media Channel’s performance linked our recently advertisers

rest other in include of Spain. Looking up terms and are at of that the well progressing opening Switzerland countries Europe,

inflation is to with demand in in markets The European and restrictions the positive, overall the advertising get spend front and very of rates these we're need sentiment drop, among consumers. recovering advertisers seeing as eased. are reflecting U.K., As pent-up

rebound the have market the restrictions, started weighed in to following ad We of we rebound months believe quarter with see year, which additional last of in to again, the third restrictions markets ahead. as easing temporary. be will the proved the in As

expand first digital on Spain with We're which launches continues across added Netherlands a Clear thereafter quarter ecosystem. for additional U.K., launch Belgium. Channel France, in and quarter in with and the buying underway traction alive. SSPs receive avenue it programmatic our the launched a Similar Channel Europe XX,XXX also positive our testing now to LaunchPAD to buying LaunchPAD, Our bringing and platforms, UK. Spain, assets, out-of-home omni-channel introduce branded of now Finland footprint radar We're and called Scandinavia. rollout to and our the the Sweden radar customer current a Switzerland, providing leverage as Europe. our important our Europe. digital scale the time, screens France We in partners. Clear in in into continuing serve We digital premium build XXX the in displays programmatic in Supporting total technology digital customer gateway the programmatic over to buying is of inventory continues plans track offering our Americas, the proposition ahead recently in these process, with simplifying rollout and platform will to to us Italy, Belgium advertising connecting new will live to out-of-home over target to and an in

quarter, to as summary, a potential in continued now advantage we our economic year-on-year our on the expand We're the indicators seeing demand of second advertiser global ability to optimize growth full remain portfolio return progresses. revenue in executing our the and improvement the to in pointing of strategy to So year committed recovery. to with revenue take

Now financial first to XXXX over it Brian quarter our discuss I'd to like results. turn to

Brian Coleman

morning, you And Good thank William. call. everyone. for joining you, Thank our

the our well expected, has to as challenging business, comparisons quarter our strong as the QX, performance As tough in COVID-XX mentioned, against impact XXXX been on William of as Americas.

our beginning see key in are rebound to we a of many However, markets.

XXXX back the nice but see to levels, certainly We it's to aren't improvement.

begins also in stronger while work our our improving on are to from are structure a We costs position continuing business benefit economic to environment. our we capital and as in addressing the business investing reducing that so

that everyone and exchange, I'll our non-GAAP compatibility about Before for discussing foreign GAAP when our also evaluating this provides results greater remind discussions. We results adjusted during believe results, I our want measure. performance. to talk

on the in lease detail and We've Additionally, breaking we out transit more both on added disclosure revenue. revenue have include site including expanded our disclosure Europe Americas expenses to segments. also Americas’

foreign X. on $XXX consolidated quarter XX.X%. on results to Adjusting the the for revenue XX.X% Slide Moving was decreased first down to to revenue In million. exchange

in $XXX If foreign a were in million consolidated adjust million you the the $XX decline in compared with XXXX. million to EBITDA exchange, was exclude XXXX of adjusted to Consolidated compared $XXX These net in million quarter of net for of Consolidated $XX consolidated was of QX China was loss in revenue first QX of negative XXXX. adjusted and results loss line in as EBITDA expectations. QX XX.X%.

in revenue products, year, was the was consolidated XX% first Please of for Slide the in EBITDA with FX to the local revenue down the comparisons. to our XXXX. to decline tougher XX.X% bit review QX, approximately higher Excluding XXXX approximately quarter results. be adjusted also X of to first negative a Americas segment but COVID-XX, a Americas’ turn of XX%. QX $XX was prior $XXX a national year-over-year under was of as XXXX pressure all of million quarter across than down result Revenue million the in due and impact down continues decline The of compared

an XXXX in delivered which down X.X% expenses revenue As million to part team over to fixed the site declined and lower I in the XX.X% with Direct expenses, SG&A Americas quarter site XX.X% expense. operating were growth lease revenue renegotiated to exceptional lower $XX prior of and noted QX lease due earlier, year. related

compensation lower Segment to adjusting and $XX revenue. approximately XX%. year initiatives Additionally, first quarter to of X. compared million to cost the turn last Please was XX.X% savings EBITDA an of down due declined with margin EBITDA Slide costs adjusted

now noted, down XX.X% just airports $XX primarily we breaking decreased and are our XX.X% airports business. which Transit I transit revenue to comprised As our of out is was million.

turn and down on And QX more a XX.X% be digital the digital X print first Slide with revenue than to was a within bit Rent was other others and for declined bit down performance. billboard and XXXX. XX.X% billboard and the on to Please detail resilient more down X, XX.X% continues was Our XX.X%. transit down Slide quarter in XX.X%. of digital

first X and in to review please quarter. turn our Slide the of Europe performance Next, a in

revenue the the first the was level of and million low excluding is reminder, down revenue XX.X% quarter revenue. down of of year, the in first a was As quarter Europe proportionally seasonally the XX.X% smallest given exchange foreign quarter. $XXX

largest excluding both decreased exchange. direct of countries the expenses delay and the down site with and and France, extension and was occurring revenue expected, lower Digital which exchange. in adjusting expenses $XX direct of expense was As in year, operate, lower was occurring were U.K. and in after driven down reductions to drivers operating of XX.X%, foreign first decrease The restrictions to SG&A the revenue last XX.X% the Spain. to in rebound SG&A largest continued has excluding expense. renegotiated and direct The impact impact U.K., foreign the Adjusted mobility France we quarter Sweden, compared lease the foreign the lease of operating in decline exchange, declined with largest most for revenue XX% Sweden. expenses expense decline by site of million the operating

wage government $XX down of This was operating expense support SG&A to and $XX to revenue, exchange. Additionally, million and EBITDA initiatives was for negative savings compared million attributed adjusting compensation QX Segment due foreign subsidies. negative in after to cost lower XXXX. lower adjusted

income segment operated by subsidiaries. segment and Accordingly, Our consolidated an of adjusted are operating Europe the deducted is our as and B.V.’s revenue statements financial profitability include B.V.’s adjusted the and B.V. in consists allocation the revenue CCI same the for CCI metric from EBITDA Europe CCI for segment CCI does reported our businesses corporate EBITDA. B.V. Europe segment expenses the its not

was a of As the Europe $XXX from in of million. to rates CCI B.V. same revenue decreased After $XXX quarter million. XXXX million and XXXX, of XXXX adjusting in quarter first to CCI the million above, impact exchange revenue decreased and million period $XX $XX first same discussed $XX for $XX Europe of CCI B.V. compared period – to compared loss the the million B.V. operating foreign XXXX. during

on which move Slide Latin review other to of quick XX, a Let's and includes America.

were lower XXXX. divested April from cost in to Direct the As $X in our revenue quarter down of a reminder million. the Latin Media, initiatives. savings EBITDA SG&A quarter, impact and compared American Latin the the to include due Clear was last million Latin which period first year first revenue same prior million, was year negative $XX COVID-XX. the American million of compared a expense year in was adjusted and prior America, $X down operating in due the business to $XX million $X part results

prior Moving operating and of given period decline on I’ll expenditures, preserving million $XX XX liquidity on first the quarter, the compared million current of we Slide to capital in the conditions. to continue a review capital expenditures as totaled year $XX focus

Media. the as Additionally, and XXXX. On equivalents lower XX, to to consolidated sale totaled Outdoor’s Clear Clear part XX, cash cash CapEx of due million of was also in $XXX Slide Channel March

Our for billion, million slightly first debt up to and debt $XXX was senior was cash $X.X paid of the the on notes the interest refinancing due the during quarter.

was Our debt XX, weighted as X.X% of of average cost March XXXX.

to Slide Europe In and strengthening to as the Moving we continue April COVID-XX. and the began our base third plan, our quarter portion XXXX, XX mentioned, cost we flexibility. impact primarily to response in restructuring which in the international on XXXX, of managing focus financial liquidity the we on of of revised

$XX expected of related incurred all to million were are end that international for costs. be to of total of this portion Substantially the of severance expect of by Europe and in An plan estimate charges be plan charges to the first million million. complete already We be a will $XX related this to substantially charges XXXX. restructuring the quarter plan, benefits $XX including the range approximately or

expect to We a excess cost result annual the plan of portion pretax in Europe in million. of a $XX savings

in governmental of COVID-XX response savings subsidies Also, and first lease consolidated site quarter and basis. wage in a received abatements six negotiating to in European support on work quarter. $X $XX to have million million the the first on we continue in we rent Additionally, achieved

completed notes use to our XXXX. of net due XXXX. senior notes on our the senior to we We offering Moving X.XX% $X initiatives flexibility financial due offering announced, previously the from as billion an successfully $XXX X.XX% of million redeem of proceeds

senior we to XXXX down the the XX week, of suspension December second credit last XXXX. XX step covenant financial through Additionally further into September delaying and extending springing secured entered of amendment a agreement, until the the of

Turning to guidance. our and XX, Slide

expected adjusted be quarter million first second XXXX expected million segment the revenue the margin XXXX. is EBITDA to is of range For of and sequentially to improve the of over $XXX quarter Americas’ $XXX in to

segment our foreign expected $XXX in be of the to impact revenue to range of excluding million, is While Europe million the $XXX exchange.

Additionally, $XXX we payments XXXX. expect months nine the million cash in of throughout last XXXX interest and $XXX of million

$XXX expect the capital expenditures to We consolidated XXXX. $XXX in in be million range million to

of is business, XX% levels The We including about in of billboard to are appropriate second recovery. commensurate the of prospects the excluding in our business. accelerate number led as Americas’ China. and We XXXX optimistic the spending roadside to nearly the our look our with balance primarily XXXX U.K. Europe, and half year a by revenue the CapEx reach slope of may countries to recovery consolidated our anticipate of

for of to our Lastly, But XXXX, million unrestricted liquidity million. timing approximately William. to formal company's call vary me $XXX my we including cash be facilities receipts, concludes based expect That on over let and under remarks. revolving that ending cash And back the now could to credit payments. turn and availability the $XXX

William Eccleshare

Brian. you, Thank

process strengthening the exceeding and across pace encouraged mobility by activity are of of booking levels the advertisers increasing the our and with several on maximizing remain markets ahead. investing majority technology, interest and the the the bodes U.S. our seeing board. footprint. among data We analytics our and expanding Looking In in in returning seeing our turn is that the including resources European of platform, digital XXXX programmatic we're of are potential year which we digital well vaccination ahead, we aim of our and further for focused strategically

we continuing consumer ability to to make revenue of growth buy making, our buyers, expand easier our effectiveness assets As to will inventory in elevate our our to digital and we potential. demonstrate the decision particularly ad look among influencing

session. costs also continue we and our And macroeconomic As me growth we navigate carefully preserve climate liquidity call steps long-term. over driving on in and profitable operator the the to we to turn now technology, the our for will let take manage invest over the Q&A as focus to our the evolving

Operator

[Operator comes first Fargo. with Instructions] Your of Steven the line question from Cahall Wells

Steven Cahall

the color. So thanks a lot for

the give seeing about you're maybe and pickup division? in talked large you revenue signage, a color is that's a this bit the little the resurgence. lot on areas urban Because sort this RFPs that imagine I How Americas in is thing? urban of these large division could theatrical, spectacular of of You where much us days

reduction then areas? could So some detail. thanks maybe question put of And if deeper you XXX, which end larger covenant holiday of the your Brian revolver Thanks. Maybe maybe the trends sort could means the bit covenant? compliance for the some seeing, you're debt to if what payback for those around I liquidity in maybe you're into Does you that revenue with bank little XXX the year? And ending a of by urban right. Europe. context help heard like you dive does what put color and that think that I same financial or of And include

William Eccleshare

take first? you me one to want Brian, spectaculars the

Brian Coleman

big to they of not deep But that's with. clarify, about they theatricals good our are buy networks and relatively what footprint. just So buy They one, the spectaculars. and the actually do are Steve, the into buy digital question of users majority

but that it's back. but showing in that disclosed. that's coming is bulletin how I And not the so just that definitely it. theatrical other signs spectaculars hope back, I big gives a think it's is, business and flavor don't the you was for disclose we It coming

Steven Cahall

urban of companies? seen local sort back. our some of in large starting area from transit Maybe city just that to We've come or is context X that a large TV

William Eccleshare

get think mixed the think and it I are. we you somewhat is, I QX bag robust look but that, I'll be mean, question I now. I certainly, across and this just I things as we'll than a go a more mean, will smaller the the so it you definitely right more Yes, to think we're locales, the more country, seeing beyond, answer go south it's definitely

about have really our think I markets, second We third we're quarter strong a overall, second half, a on of second XXXX be to trending traditional this ahead a markets And our side. but third but of very third expecting and a and of particularly revenue, not year. the our half of

Brian Coleman

almost And, to think I Europe Steve, I bulk be recovery picture, very the the longer. we're markets, the very as lifted be the Europe, I the the taken restrictions you because other we remained Restrictions as as country. pandemic of and talking to we'd being for asked well. European really hesitate generalize different follow If seeing were. positive by in have has are by were just recovery about about In country it day, cured it in place is closely. very U.K., a longer think that about presenting the

by picture. is lifted, and going in are happening so lockdowns that so recovery the are is a lockdowns consistent is being revenue comes those as U.K. week back strongly. of the during it taking the it that lifted, And But seeing that to very week it's be we recovery is that place. second pretty haven't we're quarter by speed the What week is seen week

to to continued taking in for such of second Europe see rates of as across into to think in is there a quarter no transitional and much I would strongly, it as an all so the average markets the pretty recovery is update But low. one then April the think strong situation. what second that that say sustained half is increase. hold. more this certainly And I Europe you we're moving Europe, is as expecting out be vaccination recovery by thing quarter, our a I But looking May June, I would think if and

William Eccleshare

jump the I'll covenant in answer and question quickly. Steve, And,

of say first with amendment reflects group, support the another bank pleased so happy to we're to I'd think, our that. I certainly like and continued deliver

thing I noticed covenant. second springing a this The is

cash a today the which means a is. really test secured outstandings flow $XXX there to our million. year. amendment it covenant, if So financial which in But the continue end is the there what of leverage we'll under is maintain applies And really revolver, no is, return, of until only liquidity minimum is second there

So That of with leverage times amendment the step down it's the of down has is when the been delay XXXX. financial and the times, covenant, consistent with in test there step first to till application the delayed is test. to X.X X.X respect effect continuation delayed, September XX, the a and also secured it's a and

So we feel the I kind And do to how report based and is again, have to pleased think the recovery we of going. we it's second means on feel meet amendment test. that sufficient that

I You that guidance provide is asked way it. that's of not and question kind whether took liquidity or guidance about and When what availability. the a the sufficient and reflects we the liquidity includes cash

included sheet. revolver, We pay or our cushion. availability not, revolver we the cash cash to whether it balance it's it's that sufficient, believe whether we've matter do be in down would up hard build really doesn't it a So worked on

we of we if on today appropriate mindful additional did visibility We make we have to But than take more measures position. need any front. changes kind of liquidity our also past. in we'll are very And should that the

let your me I if didn't. know question, hopefully, I So addressed

Steven Cahall

No, that’s great. Thank you.

Operator

question comes Ben Your from with next Swinburne Stanley. Morgan

Ben Swinburne

a advertisers give Brian, of bit about just year also, quick. how because out about you interesting. further including explain revenue again, seeing on of the whether into XXXX are local half. could and curious the that next programmatic year second And context side, was And it color of just Thanks I lot. are further guys us plans you interest you that the and you bit was your a adjusted that on the - apologies a little really in for XX% as in to that into go was would it the second pick half terms you're of up if move in little of thinking maybe that even portfolio building else's different parts reaching be channel think for of investments, on I the just if somebody through that this side wondered could technology your channel Scott what back your kind then year if was comment I of

Brian Coleman

comment. Yes, bit about in little of the to some based what comfort market. so their the was flip talk slope William recovery on But various the I'll what a and at provided in I'll see And today about guidance with as guidance that the various today, seeing over then and where our to to end really happening we're business. to second they're really seeing give recovery what revenue the business of our talk see we Scott it the quarter respect we the be year second the be the we as of will think to half we think parts XXXX, can in the versus given business over revenue and

could XXXX given we be we change, the could line. but back strong year, on to feel a pre-COVID we're And recovery levels things is seeing insight. up today, what by end So top levels, the of XX% of the

fruition. So hopefully, color that hopefully on what to recovery the high seeing indication William unit? see and today, we're come a Scott, that gives some level we'll operating at

Scott Wells

know want that into then of the as question. we take William to happy I'm it you programmatic the Yes, dive degree the to about talk portion European, well. to you and the U.S. can

more is first At of advertisers broadly. very a ahead that is channel is this and in so interest it performing pretty it is, coming see back it off nicely. materially. point, having It So, we programmatic well performing is XXXX

we're In us mix, that what supply of our the We will have to one pretty are we're always SSP, advertisers to that plans, the side see I give to a but looking the platforms, of sort least that's use. sort more looking are which access robust distribution they're platforms additional. which terms large scale of enhance demand you at always different platforms, add you actually and DSPs, the currently side think

I of think you're see actually and also content we're in capability going building how us the handling terms things. of more to more side

we're in those to scale that robust, content making developments to able So and we're there we're more working continue system, of and that making our are nicely. other our lines, toolset in along that management with investments terms

side, It has not more coming business that programmatically. a our as primary have local a of of platforms been level. the I we As lot question you angle by think the to that do demand at see few side mainstream on local, the demand business, some on the online, but had customers,

been Europe. I think not focal don't point if more, William, anything know so pick far. that you'll there's you'd add on has but us up I see the

William Eccleshare

think No, I'd across been what said was only been think say model growing of And of - the our capabilities. programmatic right you U.S., I I of a across our the at know programmatic be year this going key part Scott's I that in a - the to the has right doing agenda company. the start

as convinced scale. SSPs. in to a that and a it it's launched it's As see important Europe's now We U.S. say And the adopting the we'll I pretty our share a we is three behind said within initially. five a call it our of the script which premium in But to absolutely earlier, LaunchPAD, platforms. European start two markets, Clear our digital programmatic which I'm an in in would I Channel programmatic business. major five product, taking at digital significant years, markets bit in branded next have key the to connects those little inventory

step an forward. it's So

Operator

with from Lance Vitanza Cowen. next comes Your question

Lance Vitanza

hearing it right, that you're than but I different time not of this like I country-by-country lag one being last But generally, could pace and I get with of for right? And William feels the Brian audience that that by restrictions and understand really about between the I one found dollars? very have helpful. maybe, you William, varies fall, what we return and the start of ad I'm country-to-country. commentary did sounds the seeing for lifted lag And the you're return if around

William Eccleshare

much really we digital depends each on have in market. inventory It how

over where of of from U.K., the comes in much lifted. are is pretty recovery So XX% terms screens, restrictions our now in revenue revenues the once our instant digital

after can on can longer. the that on So them advertisers France follow-on instance, soon digital inventory. traditional once we audiences we street, are recovery little those to screens. a In reach digital up want for onto to where inventory take significantly less And back have get and then straight

footprint. as the Although digital lifted variable. that we pretty I I is back not back see of year, main with main if stronger mean, as fast. would did - restrictions into revenue QX think the fast would say in that were when coming But that a we look we France, I last is

think up to of what are of government’s the loosening other I of factor in is signaling at the plans clarity look terms the their restrictions.

vaccination So process I opening the go we reacted, to the time have was going think a it's be. being restrictions in what a clear reacted, they of the now infection think down, benefited I they from we're clear long and In Spain, been they rates took France, much say, very U.K., would before rates now seeing An stages we've roadmap five lifted. up, less of go and up. in weekly

direction a I'm optimistic I say, market-by-market. optimistic as recovery, of it help? very I'm the once vary are speed but little lifted, about it restrictions Does the travel. does about of So bit

Lance Vitanza

if words, thank does have And outstanding into on otherwise $XX somebody would LCs able Brian revolver, is other you borrow Very much In is factored just the you, the guide? a still to million so you. be so what that's right? $XX million and then for that to liquidity net of against presumably, that

Brian Coleman

included not than maybe liquidity higher correct. be out LC million, of for disclosed the include will which the less not the covenant. the size what any we remember $XX LCs. I commitments, be liquidity but we a is availability a exact it's actually big it the so that revolver, And would amount would kind backed I think are little because of user That's which available don't in

Operator

next is Bisson Your question Wolfe from Stephan Research. with

Stephan Bisson

Americas structure a will the levels in color how both Could to today. other? trend over for Thanks the term throughout they perhaps longer change and so about talk cost for or year bit it or Europe you pre-pandemic targeting and be way something much margins additional the one and the push the

Brian Coleman

stab and William and that if William Scott a you then want respectively. take can to at I

we in a through if Europe you in improvement. would I little, economies leverage. And the second in to as a coming the has to So great start early business Americas get Europe in improvement it's a but back. large make as We're cost I the fixed margin rebound mean sequential QX recovery half. pull know think We we we'll is the are of there. deal to of and as is in And it margins traction expect talked Europe and kind In not for little recovery. the occurs. a follow recovery operating about see this in really that expect would starts that commitment for QX,

margins do The levels? Well, over think dependent I the we your upon of is expect change about pre-COVID other of hit answer to a part ever question And time. does business that things. number

the taken out positives in we've costs some business. some have We

there. we We continue diligent, in to expect will all longer little and out very being back. to Europe come But costs these are take a take costs we don't

On now. mix, if which we the and airports margin right some have do the other that weight And in or in contracts that city more more change in capital differential business the more margins hand, have we lower have the future, portfolio transit change does weight profile. overall could of

you some business. you large, when the should that through. the color, the it's going of deliver revenues And changes encouraged underlying so, I XXXX I'd we dollars expect And year, to and to again, know business that. assume where will in some of it. rest start. get think wouldn't the to don't reflect Scott, William But the point, I through by would at I have this but And incremental we're same back margins be of levels, see starting fall that we're that's to if to any further hope

William Eccleshare

do Scott U.S.? any to want you comments the

Scott Wells

thing the quarters to I think going I’d be And the is are go that directions. both lumpy. mean, that only several just next I say could in

approval still And the and as some snap relief to see start that got different backs the on we're is happen what's driving worst so programs. that will of played And processes we crisis we still in in during relief through. negotiations

will And neat long-term, reemerge. healthy to quarters, medium the linear path of it's not going that over margin probably next think so you but profile be I a to a couple see

Stephan Bisson

recovery you I'm longer a mentioned had point, unwound. my of comments all fair on assuming that very Scott, glad was that's term the this

the deferrals lumpiness I think next few of very abatements. to you It as could be the some of - you're lumpy. could and the quarters be right due said

So you thank that? for

William Eccleshare

Yes, would to add, lumpy equally lumpy. I as Europe, I'm It word the so only afraid. applies pretty it's well, to was I use going

Europe and we point to echo make point other Brian's are clear, for some significant reduction in markets. in specific made it Europe some pretty going is, I European cost would The through we have programs

those know programs markets, time all reduction those of go you take through as negotiations. European As extensive you cost with some can

some we addressing not that actively going based impact some it's challenges very Europe, is really in instant be before are take we whilst So margin. to impacting to see the quarters cost going

Operator

David comes question next Your from with Joyce Barclays.

David Joyce

program you with at your and your if omni-channel wondering are revenue media the with some other that for and that linking degree could was of to are footprint portion I more are RADAR provide color other, enabled you linking you buy on with of what What holistic coming advertisers your this proportion point. Thanks. is companies also, from advertisers?

Scott Wells

this a at William, to run do take first? you want me

William Eccleshare

Yes, yes.

Scott Wells

Sure.

is alongside what client service your a And U.S. something It's it's RADAR not that actually XXX% a to very enabled. that RADAR goes the is in answer that buys our footprint because it's question is, the So buying. of hard they're not.

and their use any through not of And they RADAR an not so our many if media embed point attribution using client other might a But this planning. sell are do connect they do tool, RADAR at mean might our clients I data. might our RADAR not to study,

On products might, RADAR the other four all the of U.S. hand, do in our advertisers here

there ways the measure And question. let because I be through omni-channel percent speak two really it that me could goes it. don't think, to by our answer of what revenue we let to me So

I think thinking – don't of used, necessarily when being you're that's not that we out-of-home what DSPs. one, would that's all for do I be the think I omni-channel you do analytics RADAR omni-channel, meant But ours. do include think we we just by studies,

campaigns is where thought we digital including blurb process clarify out-of-home But boxes programmatic they minority be play like channel. I alongside their digital give products emerging but think or we well. it's are might omni to work quick programmatic they They channel an ads a with this as you absolutely buying can programmatic. this me advertisers seeing relatively and where DSPs definitely at is can But still when promise, has a add things our that other recent for out-of-home growth digital digital advertising something for are or It's in the along And space other omni-channel out-of-home. The that. So out-of-home of huge DSPs it are you search that point. these includes revenue channel.

So, addressed your questions. that hopefully

David Joyce

for U.S. just all were the correct? comments, those Yes,

Scott Wells

that Yes, was all U.S. focused.

William Eccleshare

other take it just Spain last year. this the to the and again, as looking patterns. the into if RADAR as we later travel of markets to rollout and a year, in U.K. product But market point, And use a you audience we just Scott's European Europe, are launched RADAR we as indicator audience

in And so reach they general. demonstrate to boards a to collection use that can audiences but advertisers it of a relate or or through the campaign doesn't our specific network advertiser it to a screens,

David Joyce

comparisons or will the difficult pre-COVID? various differential when make the shifts things second from were be XXXX Okay, due or will mix And question, XXXX could revenue the clarify, thanks. margins in if you please your cost cuts normalize to margin higher

Brian Coleman

we answer know the think don't I to Yes, that.

same change we contracts, achieving made contracts. and the savings some And cost we over At And and to are that grows, stay. of that can up those tailwind. reevaluate the business and portfolio the more will everything, time, as If business of we're get profitable of into could transit, obviously that we'll have think go to I time. after it shift continue mix. we'll a is

focus flow. know think cash accretive to But to most incremental on as value. day, the portfolio, the generate and the positive free And at best think margins, can. is we'll end know we continue answer, So want manage we of the I but to don't we improving that positive we we'll the shareholder accretive I

David Joyce

those Like renegotiated the with lease prior think of temporary come you that cadence? abatements, in how temporary And have I were understand back should – about levels like, contracts, just if we could better do they revenue, changes?

Brian Coleman

negotiations, with, and it's the start you unprecedented started realized a and impact trigger largely times, mix payments Well, deferring that you greatest well. everything, when it's was think with as I COVID on our counterparties

there's it, it's dealing out. those you're landlords, sometimes it paid sometimes be wide referrals, ultimately will there's discussion more government support of And of a spectrum private and into abatement, discussions, with a ongoing. these a have deferral But and and is to maybe and behind turn are sometimes

a that it that something think everything permanent else been confirm is abatement, if I paid. once So we hasn't and deferral, as we, a that, disclose

Some of be some the ultimately unwind those deferrals deferred could as slip and recovery into abatement, continues. those of will

last bag. and mixed a And So in site that we've we it's all disclose year. abatements do separately, of the quarter gotten the lease

The And negatively do gives site lease what initiative. COVID. big hopefully, And a It's so is business they'll the negotiations. operators that by job. impacted some done you continue great color to have on can long a the they as as

Operator

from Avi Your next JPMorgan. with Steiner comes [Operator Instructions] question

Avi Steiner

I've to morning. then a Domestic then couple seems airports more? seems remind be important for back travel revenue on squeezing And that quick here. business versus based in, is historical for good just on on got time coming the company of what it curious between travel returns level the levels, few numbers. me a I'm how and you business Thank Thank travel if coming And like TSA the back to you. can us and personal? you higher lag thanks

William Eccleshare

thanks Sure, Avi.

anchored not, is a who we've coming is of we've on. travel right of the through engaged The lot advertising oriented. majority crisis, as sort of BXB business absolutely nicely. advertisers back You're the travel are historically, what actually is gone airport But

of so, we're through mix And a going portfolio a shift. bit

back it a to be consumer or robust your as in still Business answer be the to had because products. a definitely level and that inventory, have question that oriented robust the will of to your for needs for international most be we think premium travel international us way important for some I a reemerge to for don't whether audience to in whole travel to business start is tend the particular, it very think COVID I I'd terminals opportunity. before order get same

and a because you think might year, little bit We immediately. at last term lag, precipitous on orientation. a now the disclosing And bit I on a when it's off a more we're information, As see contracts the fall the this little the far lot as question in you transit. and are look that airport clearly go see didn't of longer back

robust. unwind so analogy, in of to a least works And terms is it to never believe think We've how not secure the traffic pretty through little anything there. happened. other probably that and return the their the positions. And the how had need like locations this the advertisers history, to in they or you X/XX bit at and that direction, was that recent is and need audience gone order commit rebounded in to I closest of you And an get then they that that too, different decide and of speed secure work things in

don't that we the what for some of expect is know So really we of it the probably prioritize are come going but be lag second that half really advertisers strategic back we the this to will advertisers, be, year. multiple airports months, definitely seeing

it better So I builds. back get I But lag months. rate, we're lot calling think of ball think the our when news will do the exactly the roadside as to terms is multiple a business the in on to going by run year

Avi Steiner

about these And we and were come the comments, me capital, restructuring interest from then on then, Appreciate how movements do please? cash just think any helpful, other that restructuring Brian, very just And color. Thank back, working some deferrals in and of you. there? liquidity which beyond CapEx,

Brian Coleman

periods we And and I year defer of deferrals. to hit. position, particularly then went liquidity liquidity pick for Yes, a convert purposes, we of some that's our operators in gave will payments have now in very do reasons between abatements. the have hard swings normalization, why got the to when permanent think and and kind in out working of one kind those those they payments, we We've

what yes, at pretty related, and process thought think And see that the range. charges, on. actually That the I end today, we a have here matched the we've some Latin to going of outflow kind not we one taken But first largely should If quarter of kind to important of are be more largely cash in costs, we've is funding cost we of the corporate, we think And and we Restructuring of lot some make will forward. countries the will have larger spent, take huge substantial. in going perspective we until from that side XXXX. initiatives the cost they year out take They Europe we've it you the that should program European they I it operate but and number I the a of through look be longer we things from really data go feel out way, won't it a is that And do is bit look upfront have so, and of guidance. a was significant going liquidity of line, kind a what and severance some do revised initiatives, really that. part, put most provide for should another that on amount go day match there. amount in and a savings I provided and a that we little from the the little a America, out longer. feel - on about that we receive of But we function have since benefiting to restructuring good U.S., the think some of given points

working capital hopefully, So side. restructuring the and that's helpful on

if you know me Let have further questions.

Avi Steiner

haven't in maybe new it thank thought market. update were there just so heard have comments rules while but missed some here billboard on for Los out Angeles any there earlier one. I the time? you That's I any coming great. a last and potentially in the And I year the may

William Eccleshare

a Planning as The would City land take process response but It's that it. the council definitely will deprioritized put have move We I'll bullish an I forth it. is And that guess some the But in about city drafted. that ordinance part had will do committee. they're their working think for work the and the of early thing were yield. COVID. council you going had about city hazard ordinance not the I through, now of serious the read as that on engaged I there, don't a to council's It year things do got and the timeline know use out one well. city political they Commission language last industry that very felt during are pretty when that have might we to that's back getting on that concrete. is working had was to

Operator

At to questions. there no time, turn over his are remarks. I back additional this will William for closing it Eccleshare

William Eccleshare

year on as bit really the circumstances. us turn you I But COVID. recovery of of and those full how back we the we are going half for this back the supporting will say, I for where are you, ability that are into the to out from you markets as seeing as varies and And picking quarter second we market come lifted, if specific call all of world. for look COVID-XX. some into just demonstrate we from are inventory want to streets, coming see just the second audiences clearly the up as to the a I think we upon mean on as levels variants dependent control questions some growth the business's where corner market on truly is our that QX XXXX around lag the the today, on back business key everybody and vaccine thank whether Thank a the of and in joining pivot period. and COVID of corner, our we've back signs quarter back programs turned do to see dependent end business and real the by saying run to different restrictions further during encouraging quarter by us into recovery the as that But starting I growth. quarter digital there factors of bounce we the out the like based around went It's that and to are look had

months. great you So to the Thanks Thanks thank talking the look your in support. for much. and questions, weeks and we forward coming very for

Operator

This you. today's call. conference concludes Thank

may You now disconnect.

Clear Channel Outdoor (CCO) 10 May 212021 Q1 Earnings call transcript