CCO - Earnings call transcript Q4 2021 | Clear Channel Outdoor Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Clear Channel Outdoor Holdings, Inc., 2021 Fourth Quarter and Full-Year Earnings Conference Call. My name is Seb and I'll be the operator for your call today. [Operator Instructions] I will now turn the conference over to your host, Eileen McLaughlin, Vice President, Investor Relations. Please go ahead.

Eileen McLaughlin

Good morning. joining earnings Outdoor call. for quarter XXXX you full-year and thank Clear Holdings' Channel fourth And

and the After Financial Europe our On Clear performance of Chief Holdings, Holdings, the Clear Inc.; Outdoor XXXX Executive Inc. call open for Channel Inc., Officer results, introduction of Coleman, portion the a review Clear today an in Channel and of Channel are Justin who BV. will fourth Outdoor and And overview Channel quarter of of Clear Officer Scott Q&A provide and Wells, Brian an International Officer we'll the Cochran, will Outdoor line questions. Chief of Executive call. of Holdings, operating the Clear Chief participate Channel full-year

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

impact are They a EBITDA, share-based other foreign segment compensation are restructuring presentation among important results and in and release performance earnings earnings can detailed which the breakdown the information. earnings corporate a conference available call, and provided our accepted reported conference not accounting measures GAAP found of adjusted today's schedules non-GAAP of measures call. Please call principles. basis provide earnings investor.clearchannel.com. of part release that will During website earnings on Financials provide our our conform the call revenue, we adjusted our be on certain including with We do website as that to our to that expenses, charges, that generally of the reconcile and section exchange, integral note presentation, conference these

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

Scott Wells

join CEO year. assumed of the the Good address morning, And of today's The to for of transition to everyone. role for taking for his to the Channel for my Chairman. as Vice like this thanks smoothly. It's ongoing you extend in him role gone with his Clear Outdoor has leadership, thank as I well to since past Executive time all you great I'd contributions of at time call. his first new as beginning And strategic William

earlier of support advertising of technology the making the team, our transition as talented transform strength, we for we XXXX. to XX% year. results XXXX, quarter strong the challenges media particularly report powerhouse. I'm fourth medium With we to world's and fueled given increased compared in visual a position reported pleased this are a the oldest faced a continue from revenue consolidated to of into leadership dedicated basis, On the

review kept Throughout to on doubled on pandemic, plan. strategic down deliver the these my COVID-related the past following entire faced and to CCO exchange. we XXXX we an revenue China we in-depth our thanks sincere my excluding of revenue of results our remarks. Brian Our I'm proud especially severe how our the quarter provide team surpassed in the movements the also year. myriad challenges The our has for the above our results. eye headwinds will soundly fourth organization foreign and of for responded rising in ball faced

As improvement And consistent performance. quarter, period. we each as a our markets culminating saw passing our result, the strengthened reopened, this quarter strong in with fourth during presence community in advertising we our very

platform over advertisers dynamic in will We few time, we grow smart to have we imagine and serve short strengthen ago. us that addressable allowing ways only believe could years developed a a that

alter can in advertisers most a returned patterns. point. strong We of our they and target are the overall a real pandemic transformation meeting business excess has resilience outdoor believe GDP The throughout even environment where demonstrating our to overexposed digital linear as purchasing tangible to their to business And us audiences we accurately demonstrated The grow further need ability and as by and revenue industry reach we of the mobility and consumers growth. challenged media result be is TV. where by traditional macro data This and has certainly advertising is non-sports efforts. resilience supported our would their

and add continuing will addressability, serve visual out-of-homes Our mass last the intelligence, to attribution push role strengthen media. at to

conversion excited future. cash drive the reasons we're the out Our rounds for ability to

in to XXXX see incremental revenue to strong can you generation, a operate efficiently. engine growth believe And cash our powerful cash Americas for we continuing we while as leads our in particularly revenue have As conversion, we results, business. drive

digital accelerating we ahead, And customer centricity, primary impact will executional our our driving transformation excellence. digital roadmap to our very outlook I strategic initiatives. Looking remain which believe positive. long-term and transformation, we remains three committed our Today, includes improving

First, footprint grow we to is digital strategy. which growth central to our our continued have long-term

portfolio. investing in digital digital our airports XX% XXXX. U.S. a displays fourth on displays total led of and and we In infrastructure And XX% of in have expand we displays a total XXXX digital XX addressability than year. the displays live. deploy in shelters, total team was up States. larger added XX,XXX rebound and full to format digital in in Europe, a U.S., quarter similar digital the more United we accelerate the billboards to in digital and are In perspective, for than XXXX displays And XXXX Europe across billboards smaller a the of and are deployed digital For the year the in XXXX further us will of with digital in XXXX billboards for number the over we in Combined that digital process. now we format which giving the of a our ahead, aiming the more

continued Second, way screens. RADAR value of uplevel audience by And introduced the advertisers to contributor partnerships has in our physical year, RADAR planning online well a RADAR and the measure applying in capabilities we our offering the strategies now out-of-home and to past unlock in the ability this is through elevated have U.S. believe analytics in established we proximity our to further assets. traditionally our range have rebound impact business. world an for of of to of We approaches the advertising our easier world European a major our been the the larger RADAR markets. applied to offers that

the time, specific behaviors. to assets is to of that to the our focus advertisers as insights new set reach. Over location broaden to advertisers selling continue that to of and our attract we outdoor with on expect to effectively well more ability a valuable team advertisers reach actionable consumer include sales and Our enabling customers to our want the our value of demographics deliver audiences creative beyond ideas discussions

our build was in our budgets. that towards platform influence This and our made technology to buyers buy-side spend platform. working in by same DSPs driven is our increasingly presence. We accessible decisions the ability platforms And outcome to buyers using digital utilize in their third, tandem consumer to and as advertising out-of-home are key our change. programmatic patterns of investments and partnerships mobility integration we're our to on an even centricity This we've open with a continuing SSPs, digital assets digital Through purchasing multiple demonstrating to transformation through the our is digital example new budgets. customer

the revenue still component it's to ahead. it our past continue results, of increased small programmatic year. in we will While advance year from expect in And a the substantially

and further to strengthening from other media. share initiatives, ability three refer calls. can future executional Our summary, and to we on based our our successful few recently our the option attract you strengthen in the we strong and Slide profitable I'll In their expectation opportunities all on that sheet. remain drive digital as out-of-home advertisers pillars, you display, a customer-centricity behavior from while platform our we leverage to execute pillars. other will examples At with if X, evidence the by through time, we But demonstrating growth, the of gain balance same and our is believe our video, our in the value address of media campaigns growth accretive pursuing most driven excellence, model see as strategic more in CTV. continue on advertisers we programmatic focused strategic operating to

December, of half let and of business results financial XXXX we a well performed strategic over our strategic for in European as our With for part turn is very as positioned guidance. our that, commenced Europe evaluating the review, Finally, alternatives portfolio. the also announced have discuss on me our focus well sale. Brian in process including well of our to as optimizing our possible to second it as we

Brian Coleman

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

XXXX. has EBITDA fourth year XXXX Europe difficult fourth in first quarter the been for past very revenue we and and the to mentioned, Americas Scott of from quarter segment-adjusted as a As with and a exceptional, ahead moved quarter

on Moving to Slide on results X.

the revenue everyone remind of of during fourth otherwise our amounts performance. believe I in noted. about increase. and Before results XXXX non-GAAP movements discussing unless exchange, repetition, our $XXX We want a evaluating measure. avoid million, was results, fourth the to To provides to I'll changes to a GAAP are quarter Consolidated quarter percent XX.X% XXXX, talk that excluding also foreign in greater fourth XXXX of our comparability refer quarter I compared discussion, our results this

the was the to net importantly quarter to up in in Consolidated $XXX quarter million, compared prior movements fourth XXXX. and foreign foreign Consolidated EBITDA million revenue year. the XXXX, exchange. movements was million was substantially $XX China a up $XX compared excluding net adjusted million $XXX in to Excluding fourth and exchange, income XX.X% X.X% of of compared more loss excluding in

foreign consolidated exchange, movements adjusted million. higher Excluding was $XXX EBITDA slightly at in

increased full For year, consolidated XX.X% revenue the $X.X billion. at

EBITDA in compared for up net for XXXX. $XXX $XXX Consolidated the loss XXXX Consolidated increased as in substantially to XXXX. revenue movements million adjusted $XXX million, year XX% in $XXX full exchange, compared million was to million XXXX compared XXXX. Excluding foreign consolidated was to for

for full year. in foreign $XXX adjusted exchange, was movements the Excluding EBITDA million

the results. Now X.X% operating notably million, XX.X%. accounting with please airport for Americas review revenue X The even XX% and digital closer $XXX XX.X%, $XXX up of to and was site New delivered to is The XX.X% by most in revenue turn Revenue National and quarter data expenses was margin The driven Direct airports due part airport adjusted $XXX the margin and approximately is SG&A was performance. Digital improved related than higher up XX.X% up million rebound it significant billboards. of XX% ability up flexibility higher across driven XX.X%. million, the XX% one-time to for well for million, XX.X% revenue and revenue to displays, in due to expense which increase due expense in of place revenue due segment-adjusted lease Americas Advertisers to to were the a $XXX The EBITDA the Segment-adjusted and of print thinktank more to in digital operating higher York change want up was revenue, digital a XXXX. Americas we Slide digital up new XX% as content. XX.X% $XXX EBITDA levels, was QX products, fourth to of all to inventory COVID. billboards. return few local by up an accounting in ads and increase for accounted needs with New revenue. large as and easily benefits higher is and Jersey part programmatic. EBITDA of the the was million, pre-pandemic and buying compensation costs in to billboards,

XX.X%. margin one-time benefit, to segment-adjusted XXXX's margin QX these be EBITDA close Excluding of would

million. to brings includes the primarily from with which was slide and This Northeast. revenue This passenger display, and wallscapes by million. up performance billboard other Americas revenue airport Airport X. up XX.X% our out Slide transit. Billboard regions Authority was XXX.X% was all spectaculars, of our driven to and rebound New the street advertising new posters, in display and York by strength the in improvements Turning helped to and $XXX revenue Jersey was other to XXX.X% across particular with $XX furniture Port up Voltas, traffic sponsorship contract. airline Transit New revenues

for up bit other And QX X total of to Slide $XXX was more XX.X% other. a revenue. Now, accounts now billable revenue rebounded detail XX.X% and was on revenue Digital in for million. to up on billboard and Non-digital strongly XX.X%. and

revenue most Slide increased products, a foreign total those Digital Europe Next, commentary on Europe all XX please My movements notably in of XX.X% XX.X%. exchange. review improvements street results to and is XX% been fourth the have countries turn led that France. exclude in our quarter. of performance was adjusted in up in for and accounted driven furniture by across by revenue to

lease XX.X%. by and addition, expense to abatements in to driven was Finland, U.K., the increase negotiated the higher and up the operating in The primarily strength including driven rent and of quarter which growth Ireland. our In revenue. XXXX, Direct footprint revenue by drove compared XX.X%, up number SG&A markets lower digital Belgium, of site were was the overall expenses increased Sweden,

compensation with offset at. million, by were substantially cost costs restructuring a as through reductions above fixed to performance. by reduce higher result Segment-adjusted $XX driven Additionally, fourth and due relatively for slightly was of EBITDA This is of high cost the to EBITDA higher in XX%, up benefits These approximately XXXX to was period one-time base, XXX.X%. due operating revenue declining quarter in savings. plan pull from the segment-adjusted a margin improved

CCIBV. Moving to on

segment-adjusted of statements for businesses revenue by and are our our income corporate include deducted CCIBV. segment financial the reported its an from same does to the that in Europe the consolidated the as not with segments revenue profitability CCIBV's is segment subsidiaries. for consists operating CCIBV EBITDA. Europe CCIBV's metric Our allocation and operated expenses Accordingly, adjusted EBITDA Europe's

of compared from of revenue XXXX rates, movements CCIBV operating to period same to of exchange As $X fourth foreign at the of revenue XXXX million increased $XX for of income discussed same and above, the from million to quarter during XXXX, $XX increased million CCIBV's Europe million impact the period the and compared XXXX. income quarter $XX fourth the operating $X of CCIBV period XXXX. was the XXXX in million. same After compared million $XXX quarter Europe in of excluding

And Latin $XX consists quick American $X Let's is our other review Other to move XX. Slide up of of operations. million. which million, a revenue

SG&A Excluding million, up in million. were was movements was XX.X% improvements million, countries. up up $X driven expense in $XX segment-adjusted FX, revenue And all million. by operating EBITDA $X Direct and $X

$XX digital. review Slide year compared to $XX digital. million capital the moving period as our increase full particularly was And capex The million, Now of the Capex spending, to due also quarter, $XXX in our to year an investments was up ramped capex totaled XX. $XX fourth largely our expenditures. of increased million for compared Full-year prior in our million up XXXX. to we the full-year

I related several segment. also In our that capital primarily expenditures, addition we to wanted made million, our XXXX, Americas and $XX highlight in easiness acquisitions to to during totaling permits asset

cash consolidated million of cash XXXX. as Clear XXst, December XX. Outdoor's equivalents Now, Slide Channel on and $XXX to totaled

year. the slightly was debt from $X.X billion, prior Our up

quarter XXXX. interest the cash fourth approximately the during compared due credit the The primarily announced and revolving into the we first X.XX non-guarantor million on to December senior prior during one was As our million of year, unsecured the the balance paid million we debt facility. under for $XX $XXX loan we $XXX paid European our $XXX Cash outstanding in timing an of loan subsidiaries the program. interest payments. million the in of state-guaranteed through was half for year year, and a of Also, interest repaid ended XXst, refinanced quarter, fourth notes the quarter entered approximately to million $XXX up fourth previously

cost XXst, average of December of December X.X% XXXX, X.X% weighted improved XXst, XXXX. debt to from of as as Our

revenue is Europe's million, quarter, And expected Moving exchange on Americas $XXX to QX million in to is which in XX. between of of movements excluding for revenue was be over XXXX. may $XXX Slide this exchange and in $XXX At $XXX a movements rates. QX QX XXXX be time, our point foreign consolidated rates. in foreign up strong we with $XXX outlook between as million the business. excluding recall between you to $XXX to million X.X% our of And be revenue believe and expected XXXX, line really will in

range to portfolio. to capital consolidated assets expect XXXX. on to we our million Consistent plan anticipate in be expenditures will We be the in spent $XXX amount around of digital with $XXX XX% our digital transformation, accelerate this across

million for Scott remarks. $XXX anticipate interest cash obligations call turn now, payment to closing back having in we me approximately his Additionally, XXXX. of the And let

Scott Wells

position entered XXXX to we plan. continue a Thanks, in have our summary, strong Brian. In executing

our noted, picking prior in the improve advertising we off our as left to costs options remain we call. further our session. where now, Rather, the are me I to making digital sheet. profitable this and operating Justin platform we balance let operator in committed our pandemic. our up strategic our for our over the we believe and strengthening CEO transformation leverage As the to performance continue we we as investments on for our while And not us assets carefully Europe, to technology, demonstrating to leverage evaluating invest we're of managing the And will expand serve. turn join just can fuel we and can growth, the Q&A European we Cochran, Further, and call universe for

Operator

first McVeigh comes Stanley. The Morgan question from ahead. Cameron go from Instructions] [Operator today Please

Cameron McVeigh

my questions. two. I taking have for Thanks

more color provide any second, yet the the on strategic Thanks. First, on M&A? that verticals you have can update European you give And put could - some recover? to

Brian Coleman

of any And We we're in portfolio actually December question. that that it. the possible Thanks, we second prepared of We that have get this, evaluating XXXX it. to know because a be one the to commenced Europe sale. take had able about really of first lot including of process but Cameron. there's alternatives figured announced going part strategic of for we bit little that's remark this a in would optimization I'll We for we're curiosity our not process. on comment position we

that to just be refer need takes just really it, at as we that you so that as action And promptly Board soon to back communicating that on we'll our and you time. assure very

Europe. you at really point. know So lagging they On this verticals that's are verticals, not

theatrical to things course the spend. most big verticals Over degree been of QX, healthy level a really lagging, had back a and of get saw the we retail of amusements to like that and

I we're much more as not flow a as competitors into spaces is vertical laggards. in an in people products, think ebb advertising and new now now that normal verticals any launch where environment taking the It's things come environment right has different place. as prominent

Operator

from question Our Wells Fargo. ahead. from Steven go next comes Cahall Please

Steven Cahall

Thanks. on guidance. first Maybe first the just quarter

over even I been years, certainly when think you few last gave the have the was side, with update like guided, the you've looked generally QX in December. you conservative on

that conservative. moving to it's think call. we the pretty the feel tough curious quick? just market a Is So how just like You in about you're guide QX So little should trend? being light of

there year? Americas cash on free the be kind what do help costs seeing Any the helpful. Thank EBITDA you'll Europe? comment think on any be guide. flow us you but that operating positive I Scott, free you've then color would and for That'll about what maybe this, And are think the And interest, the and would cash cash this sorry QX helpful. So, each flow be on us missed of percentage you you. capex in with maybe relatedly, then fixed of leverage, implications just are could remind of if

Scott Wells

I And I there Steve. as certainly if these can hope A and I down didn't I was circle can lot right, write along. back. But going it. don't, I we All cover

Steven Cahall

QX - guidance being guidance QX So, conservative. so

Brian Coleman

we But to - being brought going other. one I Scott and softness the both during said, guidance Yes, I our coming on for from we time we're basis Certainly for it's seeing, the other reflect that. think that Europe about with where Americas' I - last think of we're was saw we conservative a get what think good feel at what forward. be think think the stronger at it. of we going what particularly side We best see rather - consolidated Europe the aren't the segments, less impacted numbers typically little variant think the we have up. Look, that's That it's natural XXXX, to is it but I the out. time we're And that think both the maybe provide we we the we the a that but weaker, being little different more be I a QX. estimate And Omicron take guidance. being in what I variant. all since than some I'd I on And helped impacted, us Again, it think quarter. the case QX the best by that pretty

do have of amount think I We a costs this operating significant leverage. fixed. that are

provided Our variable, numbers is majority European segment expenses expense but variable detail and periodically. the I we that, know it's a XX% around and whole XX% on it the roughly is, the a rent shifts single in more what fixed, if kind I fixed. per fixed of segment, largest both of lot but think those are expense don't Americas those

it after is that. expense expense. I dramatically then And drops think largest comp pretty second off Our

But, other gives different that the not think then therein. backed abatements, credit in writeoff the out side hopefully take adjusted it's third impact I wood, yes, providing kind the variable guidance, recovery for fixed the performance, of at proxy free good but on cost the piece the footing. then in guidance. for is and rent on free The It's of QX still COVID operating business back annualized the post its look our you on analyze period. know QX guide you performance recall. But an in you reversals, some recovering. and on of, So QX. cash a to that say our going the being and the as the components cash kind kind directional to one-timers, was flow I if guidance - flow I'm And things, you QX, we're And our knock COVID a if

baseline that's pretty XXXX from I you're predictive looking progress of getting to levels. And we hope there. pretty and think representative to a

but don't you answering you So, I around anything exactly business. add if Scott, question the top the color know give of it's hopefully it. have way thinking not the to we're on some about

Scott Wells

No, I think.

Brian Coleman

I've covered it. Thanks Steve.

Operator

next Cowen. Lance is ahead. Vitanza question from Our Please from go

Unidentified Analyst

This course understand the is in so Could generated you of during on Jonathan for Congrats you Lance. $XX quarter. million about - I the quarter.

Just wondering how the York-New much PA from of that Jersey came New contract?

Scott Wells

So but widespread. - spirit we in is our know contracts airports. don't we is I think on comment comfortably said think we widespread as - And how it as of typically that is I characterize how can the question the as I kind I recovery individual airports your of

quarters did And seeing I the slowest so. not We in patterns back And that have terribly broad-based. international one triple that. But we've being causing recovery. up. contract heavy good of QX. the not held mean airports strong past in to was that airports are essentially The most referenced any was somewhat the year-over-year come That

Unidentified Analyst

Okay.

for more me. two questions Just

is, quarter, for 'XX how to guidance the first to the The China? that of excluding first first does one $XXX, compare quarter the $XXX

Scott Wells

our early think by U.S. it's anticipated relatively in that stronger on same a think it's little consolidated side a the Maybe I performance But I what more little impacted by up Europe QX guidance a zip the in little the a ex we're in performance in a we'll think have sprung which and Yes, versus variant comparable of on and QX China. basis. XXXX weaker again, saw we other code. in QX. based I Omicron the And on softer in again, driven

Unidentified Analyst

versus And interest current fixed How rate that it. guide? me. expense for of cash much percent floating is and the related the lastly Got rate of hedging? What interest bed $XXX is to

Scott Wells

With And we from maintain - good prepayable a is to debt a at large - that environment of we having in benefited try third, to that fixed. current separation recapitalized basically but in recognize in certainly rising of our floating, performed of Company. thing. out amount upon low recognizing Again, - interest a least also interest maintain rate has environments. are after about a business separation, environment, type bank well rates, the relatively hedging, two-thirds months I think we're trying to the historically we we've So, although those XX the also third respect

fixed-floating establish so mix. able And were we to our naturally

So, have the Jonathan? your any at time. we rate that books this interest question, Does on hedges don't answer

Operator

Our question next ahead. Steiner from Avi JPMorgan. from is Please go

Avi Steiner

Thank couple of strategic good talked questions ultimately you and if you start be what to the get in opportunity you Maybe, you the may and about to you Scott, some talked of - the and there, the can here. initiatives about A programmatic maybe of morning. I priorities one size terms think can of initiatives timing what but the time is?

Scott Wells

across more digital than all mean accounts still if the at really of kinds it's And advertising, the for digital of the space, revenue So, the in substantial. single-digits. three-quarters different you opportunity our on space. in space I look is programmatic that programmatic

potential the for think marketers embrace some as I So, you have substantial that growth.

and/or buy assets different unable side, reasons substantial flip there's people are our converted. to be parts the of On for that

not programmatically assets. not iconic-type a about if People I'm lot not will. it's really it's might talking printed-type the a really because - So of one-to-one, trying own assets, to location, the they actually you a buy are

it. innings the very data. being to of are shown with flexibly growing marketers very, look, It's able think early So, the have I of very buy experience they like definitely And that we in fast.

opportunity is a very space. good for our So this that bullish I'm

Avi Steiner

talked be I Inflation little inflationary seems Brian maybe think sectors. variable And Appreciate to a And And more if could Great. pressures, cost side. about about any, then to of seeing. you're outdoor you that insulated. number XX/XX. flip that. is the it if expense And the talk fixed I a at obviously impacting

Brian Coleman

relatively That's leases. have I single our do thing category. Yes, expense you biggest fixed of a think we - high is the percentage key

others does the in so where one some and I provide And that some certain contracts vis-a-vis that insulation. we by might inflationary in think large you escalators. advantages And particular, have have in is But of environment. Europe,

keep Our something second comp have. we eye on we to largest category and have is cost an

the going to So, as that And if good make that forward indicator, We reacted that position hope inflationary we but side. we sure possible. times. look, history, well a as done I that the would don't it's think be and ourselves we compensation indicate industry so have have in is best pretty ourselves outdoor to and want particularly on want the idle case

Avi Steiner

then strategic it can't since comment know the call lastly, but review much first And the perfect. announced Okay, I for you've you is Europe.

can out not to least you one, at can So those there if not two don't for at But great, to then to us that And you I'm what $XXX there going I secondly, kind way million the of the throw Europe. so base think questions. maybe it percentage that or all assets. for the tied about as if think you corporate, of know all I tax questions taking adjusted help relates of to otherwise, size thank tried. about a think region? Is And

Scott Wells

you, are those two think for Brian. I

Brian Coleman

Yes.

Scott Wells

are in information. European I for creative. mean you're you angling And

done. well So,

Brian Coleman

Yes.

to any Europe. minimizing we if the a that whole about the and basis to have they - we'll that talk Board refer report disposition like. know that we decide, happens from any, to hypothetical want proceeds with, are to respect at conclude And maximizing back is if speculative looks to state we ever just on I'll tax lot what I would we that a be time. if and be potential a with So respect There a because guess want first, I And to international obviously then decision then department, importance made, that Scott decides, net if statement made. activity would experienced the they I'll isn't about anything to in sale. there with - you tax of it it just tax leakage, understand don't something talk

So, on we'd about top of I talked then think expenses. of really division the that haven't be and corporate

basis. I on think we a report consolidated

in to percentage. have think past roughly that the we proportional revenue said I

might less some the But be the - guide out cost taken little given it historically. in that's have We think a Europe, only guidance only I that. than that's we've so

Avi. that's that. hopefully, upon expand to better want nothing, not would we But than So,

Operator

Joyce David go Please from is Barclays. question from ahead. next Our

David Joyce

you. Thank

If business. on provide you the could just digital more some color

your lot U.S., digital speaking. of strongly faces digital You was it up as in the added in wasn't as revenue but Europe, a relatively

the it are more U.S. Or you you were digital more place to the to assets the drive So factor space? Thank the outdoor of is of, growth able - revenue it a you. that and digital is U.S. more have marketers already. in is in allocating

Scott Wells

I'll answer size the on you actually of And factor of biggest But signs. the the couple signs of kind is impact factors. the give the it's and Thanks, a of this one. the David.

the it's not sized billboards, relative one about to those look deploying at talk format Europe shelter what comparison large bus when one in a fair to really majority would So be screen. a we we're of of screen,

of have of our maybe on do billboards terms So revenue transit we billboards. money. the also than the relationship to where equivalent digitally kind assets much of the seven screens it transit and how on multiple see U.S. assets the the size the you relative of the therefore impact we in billboards, in see one big you can of report or we roadside like and and more where six it's I it mean, the

factor. So that's single the biggest

I advertisers think along path the other talking spend. marketers being about digital the allocate further things being willing of to It's more really or U.S. in terms that you're country-specific.

U.K. in XX% in of proportion biggest about proportion talk fact digital, our U.S. world, is the of the the which us the heard business You've twice digital is before roughly that anywhere our digital

regard. the in we some the that here U.S. not to digital U.K. playbook other are have somewhat in in marketers digital you're had base the installed So, market the longer right, U.S. And effect, Europe presence and are of and certainly of slower the evolve. But ahead markets

just big contribute. things underlying raw big one is the that But the those play. into really those I of value question. signs answered all your So, comes Hopefully,

Operator

Our next go Research. of Barrington is ahead. question Goss Jim from Please

Jim Goss

domestic obviously With had XX/XX the is in somewhat cost. and operations. variable in there on flexibility the discussion European the improved limited fixed have you back did margins about cutting you've expense, both But

and wondering the you the the were lagging revenues to side issue what of expense I I able profitability. growth was the is have were how some might maybe sustainable? And that So, to you the been improve some categories of key of little talk with As rebound some guess expense and to concept the if sort the cost longer-term much growth be COVID the able of a you and on revenue expense that achieve? have savings could contributed about with

that discuss maybe So, a little bit.

Scott Wells

You want me it to this... take pass at first, that

Brian Coleman

We can, either way.

Scott Wells

into Yes, about questions story these definitely thanks, portfolio little in talking of play. come bit Jim. and things a across been I mean that the I a think different we've it's

The linear that think First, the not in did we've and COVID you come timely anticipate, it it I our and necessarily during prior on way got through recovery a early a from come lumpy. are in expenses relief but didn't did. as come we calls, mentioned way, as

strong some particularly, U.S., during a the I'll had we we let had in talk QX. in factors very so, the Brian relief relief. other little that strong came But some bit QX. of pretty And on

leverage Brian point because you of pattern there of well. I in normally pent-up all at see particularly the that you Europe, was there some in high at it business Europe, from you just as you in in me other on because look the is strong were had a if QX well. was we that other point. perspective. the business, had cylinders, as example add relief look hand think European operating the a of to QX the really the very I margins a But of when kind strong think And And firing bit to talking let But, contributors. 'XX to revenue demand. you were There our

Brian Coleman

you business. really what in think, But saw U.S., the the reflected have the - I a that's in QX Europe. board, that across the everything the with in agree the recovery leverage you particularly quarter. Scott It think operating in but and U.S. component. prevalent I mean, fourth the showed Europe, in And lot in both seasonality rent abatements, across kind of do a I said. I of lumpiness

up. credit we're reserves, then that you a wind initiatives reversal loss had kind some And starting had from hangover cost temporary some to of the You of savings the COVID days.

And those activity so buckets of which margins. of you three kind had supported

that are very in close margins of of you were have that remove temporary you'd to nature kind buckets or activity are If XXXX levels. those to non-recurring,

and year does half for between I'll And continue a speak, the it as year those so to that to came to year some each be past revenue lumpiness when hard have start Doesn't and you the so with wind relationship a revenue of I think and possible some hold. abatements and done abatements. automatically business will going forward. will to relationship mix are margins do take to adjust of revenue XXXX have last and the back some down XXXX that was cost one-timers, It's They less mean large, you margin general has that changed, going should and think get come quarter when a a just you to really lumpy tailwinds. these those to through XXXX normalcy. by over the have as and great job teams work on and of outs tailwinds. will margins, back relationship And state I headwinds But

Jim Goss

Okay.

transforming in discuss might flight say work about into for you same able where That's displays, number theme area of the advertising of to cellphone wanted RADAR, millennials, think flight, might show in with specifically some adjust know if question that and to of at types maybe what world's I take other how of of there might to a and with to years you advertising more or the with you're field the it information transformation, and oldest comments tech advertising also media you match in you visual other of a programmatic how get I you linked the wondered is, whether the be beginning thing way. sort some could and involved little discuss sophisticated - of are with were media and one market the ads demographics digital of the a a how The would up RADAR and adjust but slide advantage display serving might I your display those a take a impact powerhouse. been the airport slides put what the to maybe that

Scott Wells

Sure.

that frankly lot signs that infrastructure is a question, lot in and I creative support. - infrastructure terms marketers adjusting like and So in in cellphone in I'd data the are guess ready kind a of be the real-time the of start ability and And spending a with yet a availability Jim. to not doesn't thing our

are a world. we're variety to do hopefully, report able we So lot we is actually over that's to to are at do able things using pretty RADAR. what look dimensions. able data to world that get won't of not we're and as on minority scared of we a in And But the world a time

up South pretty have a about, in do it with planning say so, you're that. And need that say, when Austin kind use need something and the that's enthusiasts to advertisers by and that, our the presence, we in accordingly. that readily. frankly that want might for, advertiser to have on access things is to thing, floor, enthusiasts, including RADAR demographic over-indexed to support that life whether Southwest line people find they aggressive pretty get don't actually airports the car We're let's a or that's coffee we're do put things real campaigns can for roadside, where on we trying data we signage And in talking able to they're shape able and to the of do They and to RADAR we but an at let's signs be Airport. there, the coffee of

we're the do of RADAR that's - The so part planning other with able it. to thing that

a tying analysis. the a of to of data compliant first-party way with similar into loyalty ways, and actually move programs connect back back is the and their lot again sources, infrastructure. a and able their LiveRamp their privacy data. actually data extreme your other at tap look at we're a look able advertisers where will We our behavior things sites. go to in back again back at, lot with or connect the then did on do piece We're audience into privacy to needle attribution done data through we it. the audiences, data first-party to And they you that using and cellphone campaign. able able did other people build to will of do integrate compliant go go retail your is The the the can look it That's version have We're service of to we're exposed to

That's that that's had, to RADAR used One back - where we impact just examples on campaign. we exposure go Twitch to of in the and with data of assess that Twitch the the the that provide we presentation. did the

So data, experience, we it, the piece fulfillment. just first is buying talk it's the when the the the sign the of sign, about transformation, digital

that in of digitally a business it's this for driver the And coming being years. big is transformed. All

Operator

ahead. Aaron next Watts is at Our from Deutsche question Bank. Please go

Aaron Watts

could overall Thanks highlight on. on for recovering of and if is questions. how notable non-digital talk themes me yield relative If having A pre-pandemic in and those the that there's any to differences and as U.S. about can well. couple Scott, between you and you front? digital here

Scott Wells

couple a mean Thanks, Aaron. Yes, I things. of

a asset are back our type, that aggregate, has say ahead media back geography by come quite but that on somewhat you've advertisers compared discussion yields what all, CPMs valuing and vary yield to lot have coming First And are And nicely. pre-pandemic. supports really well and come of really, and before that our comment we're generally are competitors were other in probably delivering so we reasonable and a as media. comment on I'd will as are us yields back of where and well heard and extensively value-based of our well, very

quickly of in very programmatic, see out bidding and space. so people do it built escalators for place digital, dynamic conversation, environment. the doesn't in, market months, a the for less is our In in of printed and people on months, version fixed Contrast coming non-digital, much and and deals with a that have six you actually conversation coming might out dynamic inventory tend to pricing just terms multiple extreme XX of putting digital and substantial those a versus perm the most years, be that competitively part because in are you're that we of where yield in

product yields your product where overall be to is tends But that with programmatic aggregate the so digital premium is a and then end And a up premium digital. the highest.

factor that and that that It's advertiser. of it. the not a value drives And anything for it the because that, than that's delivers it so, underlying other is way big

data become we yields more add would as more to we digital more as our insight that and to we expect campaigns, improve. will continue So,

Aaron Watts

market here that Okay, give was the is other I of for you That's can helpful. the markets of big taking Thank on say Any you. And relative think the country and recovery you heard part some Northeast Brian, I strong color particularly shape just of late? you. how to your

Brian Coleman

performance Yes, the closer Americas. actually, I'll turn operating the that He's over to in probably to Scott.

Scott Wells

Yes, I it well. of through the at whole a When mean, has country done a growth you as look kind percent perspective.

into You have dynamic came of COVID that play. the

half some the badly, hits ahead airports business in or but not get a much, or small Whereas big throughout a big in have of We of in part cities we of last markets south had bunch crushed most year, recovery big the second the been took XXXX where the the ahead growing aggregate. of for saw that mostly and growing where a on universally. basis a west. some COVID. are those took markets and we that really really particularly as have hit you pretty the so we fast, of but not not XXXX, our that COVID percentage are they're by and didn't Those they're of And markets

it, we line you'd of that we markets the the of that things to fastest. not But relative with you for it's anything were are And look XXXX. COVID. normalize back XXXX, it. Hopefully, there's than a coming into roughly if at you are story entered places not it there's if were Brian, big many again, in in where gives if are the So hit - other where feel a ahead add. recovering you hardest really the

Brian Coleman

No.

Aaron Watts

with guidance be for on should it what question, Now, me, will Brian. the or year. the a one be Scott. and been tax side Helpful cash more saying. housekeeping Anything towards of year consistent pointed that's relatively this And we capex interest for this think I on from last great. thinking about we've

Brian Coleman

consistent. expect would to be relatively it I

taxes, to I minimizes at current decision that eliminates taxes in election least our - the think the really U.S. U.S. the the Company's least construct. Fed make did we at on

historical we've And as the have and in be is past state And consistent. U.S. the consistent taxes. as expect next international it more will income, will the had little we our major relatively that But so, in levels. changes think what local I mean, and year. some Wouldn't we I bit. any recovery, think elevate with over largely, generate could a I be it

Aaron Watts

- can you've months, you know size kind up anything share relatedly, past the guess XX built the of two on I And I over of years.

Scott Wells

disclosed we what beyond XX-K. Nothing the in

think don't anything anything, new I dramatic. So, or there's

Operator

[Operator Instructions]

Scott Wells

are to Thank that the sounds we join the like us out we well time much for Have great of morning, it we about are attention. on to very very a significant enthusiastic We to be you this everybody I'd engagement think positioned and We some the business. right. your time and are and note day. very this successful questions All It taking growth. and just questions. leave drive appreciate with

Operator

This you much concludes today's conference very joining. for call. Thank

your may lines. now disconnect You

Clear Channel Outdoor (CCO) 24 Feb 222021 Q4 Earnings call transcript