CCO - Earnings call transcript Q2 2022 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings Inc's 2022 Second Quarter Earnings Conference Call. [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, and thank you for joining our call.

are our today Coleman, and call CFO. our the Scott CEO; Wells, Brian On will overview Holdings provide second Brian and Scott an performance Channel B.V. Clear Clear quarter of of Channel and Outdoor Inc International operating XXXX the presentation We in section and the the site, call. this located presentation recommend investor the during our financial download review you investor in After line for the an we'll results, open introduction and our a review of questions. Channel And of Europe CEO Justin Clear will portion of the the in call. participate Q&A Cochran,

be like I'd we statements the its begin, Before statements everyone call and and expectations. that company, differ our its can remind filings will about the not review involve achieved we during this Please earnings results our with and be risks uncertainties forward-looking there to assurance projections may that SEC. or statements goals. performance make regarding press management's no All actual contained from that statements expectations, future risks strategic the forward-looking financial including of beliefs and in release will or

of now at Wells. to time call, today, a of and today's and investor I measures do to as Accounting that presentation, XXXX, note the call earnings certain only Accepted Generally X schedules also we turn speaks replay. and be the as basis in Also, the over information to results provided We August Slide X, of presentation. accurate refer release that investor no call provide management's views to Please on will Scott conform to the reported on our reconcile this may turn longer a Principles. please these not with that our performance non-GAAP call earnings GAAP part measures will the During conference

Scott Wells

last $XXX thank you over during to taking increase million second consolidated Good the of revenue join quarter. today's morning, of time quarter, XX% second call. year's an We delivered representing everyone, the and for

revenue the guidance foreign first our we XX%, was quarter rate, ahead quarter provided earnings consolidated revenue second up Excluding movements consolidated call. on exchange in of

XX% the through excluding foreign remain year you quarter If to our half. half year, first exchange second included first in great the revenue was the rates, start a and we of up about optimistic the performance, consolidated movements

quarter, operating adjusted significant delivered a second income the we and both EBITDA. in improvement During also

Our once advertisers, particular footprint been during driven a broad-based has normal. focus demand by Europe. solid the anything performance but I'm strength business, our with grateful on team's was our Americas our that again from for in and digital building across consistent period especially

and our the exposure headway creative demonstrating advertisers in multiple making year, and are as company our far categories. the movements advances and new this and We an out-of-home digital their industry, benefited combined display power the industry brands we ways the our in to in new believe to and platform an attracting we're many reduce deepening of presence the we've saturated brought over market. search have from across Thus fold among with

our is resiliency further contribution growing the supported digital from Our boards. by

the second XX% quarter, over to accounted movements in the quarter the rates exchange of Americas year rose and During foreign last of excluding both XX%, Europe. for consolidated revenue, in second digital which compared revenue

Europe, in digital than live. more total on digital Looking during of of the billboards XXX a for in And with billboards. XX airports displays added at displays second US, quarter we more shelters, footprint, adding digital quarter, our now smaller to our displays deployed large our format than second and digital digital X,XXX had over format the we digital displays total in X,XXX in digital we domestically. a XX,XXX the total of Combined

buy launch, pursue. which making of is our the and more base faster solutions we and innovating to can easier pool expanding advertisers continue operating driven, We asset and We're to modernizing data our infrastructure.

handily continuing as bookings position to healthy In their is Turning well to airports, travel, US, from advertisers rebound resources York benefiting build and spending the our share into including our to our is as tap exceed the success. second perform in the as level. strong. continues a the half for remain to high business strong Digital services and year, are improvement which well Entertainment, brands and to business XXXX all drive of New mind track the are fashion, at airports. amusement retail in on annual

remain and a headwind. insurance the bit beverage of categories While a

Southwest digital California overall the QX, in to pacing demand Additionally, we're of in are for related I seeing of World from bookings as spending. Europe, third seasonal continued advertising in expected expect is note as will recovery to addition that We're of we our some to strength the guidance transit. his benefiting provide see to In ahead in Cup holiday overview last increase from quarter should quarter our tournament Brian remarks. to as particular an the third the and and well regard regions. XXXX. growth Northern Midwest year With benefit prepared

Looking close at the watch business trends. we're broader a on economy, keeping

need should to As feel pandemic, has liquidity us our regard demonstrated we borne out ample they our sheet. particularly flexibility balance the our today, past we digital about on COVID-XX customers during with the to to have give market resilience and costs and in moderate we we where our good challenging we And serving been periods our conditions. remain have of the the have adjusting The efficiency arise. to capabilities changing leveraged in and and are committed platform during we ensuring that

as we conduct to European Finally, our announced review strategic continue XXXX, December of originally a in business.

our best transaction transaction, greater focus our the potential business. revolving through optimizing been and Our or on Americas portfolio goal core our a the has of and through in shareholders, both interest remains

know, strategic for As business. review, raised of in consummating hurdles financing, you shift to related the there which we the environment obtaining whole since transact began been negative for transactions time a has our all the for the has European

timing complete efforts our remaining when European lower cash flow if We developments, to to pre-COVID-XX those rebounded it we dispose proceeds worth date or to revenue priority strategic to could is and cannot or the me transaction, on sales, let we buyers and net while over acquirers that over lower those convinced accomplish business our to able more if communicate margin may With Also, to the our does net be success the those single are or of needs. improves. the with dialogs take current that, are margins European it complete of discuss cash when substantially CapEx margin will and potentially Brian down guarantee the believe potential possible of have European be of the In we not in of expect for meet have through If had be our certain us assets. able these some our guidance. second generation for lower to priority lower as to types we've sales, to as our potential of interactions goal. remaining and higher well margin results perimeter European types the as making free in perimeter time we we details of light So, able. levels. and of sales turn in And dispositions bringing focusing ideal assets. regarding able helpful that deal theory our quarter, noting environment we're The with potential to that to further our minus disposition path financial to our leverage EBITDA European business our we're

Brian Coleman

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

in our mentioned, quarter we business had the second about remain optimistic and another As the year. great we half of Scott

in business However, we as are market the about ready environment appropriate. the a and we softening recognize do is to potential respond concerned

Moving results to on on Slide X.

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

Excluding million was loss our second Consolidated million, $XXX million movements year. in net in of prior loss rates, $XXX XXXX. exchange guidance. exceeding to to substantially up the $XX a revenue quarter $XXX the net revenue million, Adjusted EBITDA foreign to was in XX.X% up compared $XX million was of consolidated consolidated compared

was Excluding $XXX and the revenue movements million, turn pre-COVID review adjusted revenue foreign of XX.X% Please $XXX quarter revenue EBITDA QX to exchange, in were higher with million. slightly up we'll to significant X, X.X% Americas levels of results. compared XXXX. second surpassed more even Americas at Slide of

local accounting negotiated Americas increase of revenue decline in airport million of the lease XX% Americas displays see abatements. was a increases site revenue revenue XX.X% SG&A products, in to to Direct primarily part billboards. our million, up up our XX.X% which accounted revenue due to up Americas Digital revenue airport business driven by for and XX.X%. across XX.X%.The accounted operating for continue most increase driven revenue National billboards. million of is in XX% and were with XX.X% a and higher to expense which rent and expenses by XX.X% $XX in sales We in sales, and was by airports up $XXX of $XXX primarily driven

year credit $XXX well and were XX%. prior and revenue was addition, XX.X% improved higher year losses. in operating allowance costs adjusted margin segment In current performance compensation up loss EBITDA related the higher as to for million, EBITDA higher expense adjusted due Segment increased credit with to of headcount, reductions as

with million. and deployments $XXX spectaculars transit. from and in up performance Southwest and was regions digital The street This to billboard helped slide furniture to was billboard revenue Transit other, posters, in Slide growth, wallscapes driven by million. up to was with traffic. passenger and driving includes X. out rebound display Turning with up and XXX.X% primarily our revenue displays, billboard our XXX.X% This Airport yields regions. other XX.X% bulletins, was Americas revenue strength into and particular the breaks our airline $XX higher all revenue California revenue by which airport

revenues billboard more accounts and was for digital on total Now on and continued quarter XX.X% the other revenue a for to was detail an billboard X%. and XX.X% second billboard QX. up of rebound $XX other and Slide Billboard over to X, other million revenue, in other. and now increase to and Non-digital strongly up bit

up Digital accounted foreign operating driven X UK, in Next, for please revenue a and quarter. exclude a in of in $X was in adjusted and X.X%, and have France, by Europe resulting France, XX% the our of on revenue increased movements improvements increased was rates. was and comparable the by site Sweden. been XXXX most all period the quarter increase Sweden almost and as and street million countries driven was Direct exchange foreign all revenue as up the by across UK. and compared movements for furniture excluding reduction Europe This the growth XX.X% all to the increase governmental rent in transit to driven second notably in results part up abatements from review rent well revenue Europe markets. for that driven led lease up an My XX.X% expense, negotiated products, digital by was also commentary lower second revenue is primarily Slide Europe's total subsidies. rates. to were which across XX.X%, expenses exchange SG&A performance turn higher the digital in in by

were costs Segment These reduce million with QX EBITDA in QX Segment over costs pre-COVID-XX performance. compensation million, lower improvement are higher, adjusted to adjusted our rebounded in by by margins and line plan was offset levels XXXX. addition, improvements in in of were In substantial a headcount partially operating for Europe. EBITDA XXXX. $X $XX driven restructuring the in

on Moving to CCIBV.

million. CCIBV the corporate and of segment include Europe revenue our Our in consists profitability same CCIBV's its Europe for by second to million. the adjusting $XXX of the segment CCIBV million the movements of Accordingly, CCIBV. from operating $XX $XX of was operated allocation in period to in XXXX. the $XX the income reported statements, adjusted increased in a and Europe metric $XX XXXX an quarter adjusted and exchange period income the for of XXXX increased revenue quarter same our CCIBV impact Europe to foreign businesses of expenses for from consolidated revenue million an subsidiaries. segment XXXX million rates, second compared in does EBITDA. during loss operating operating not and same is the the EBITDA, compared $XX After CCIBV Europe million that revenue CCIBV's financial segment deducted as are

Similar other, Latin that to movements which quick up exclude American to Slide was Europe, all to Other higher of review operations. by and in consists related rates. been operating expense results Let's move foreign exchange site on SG&A and of the revenue. XX my our is a higher countries. XX.X% have were adjusted to Direct improvements up driven expenses by in lease XX.X% driven commentary revenue

adjusted costs over addition, In were segment $X compensation $X EBITDA segment EBITDA prior million. of the driven higher, year improvement And was increased million, negative headcount. an adjusted by

our an to of XX spending, the totaled the increase up review of and moving as of prior year million, expenditures. $XX Now ramped Slide CapEx compared million, and Americas. second to digital our $XX quarter the we particularly on capital

several our to addition expenditures, I capital Americas we want to the $XX quarter our acquisitions million highlight segment. also during second in made In that asset totaling

million during to $XXX equivalents quarter, And the as on $XXX declined Slide for Now cash cash investment the and cash cash June XX. XXXX. and more cash to million. and by second EBITDA interest capital million requirements. of Year-to-date Adjusted was $XX cash balance capital XX, working $XXX offset million of payments, and our net net contributed declined quarter than to equivalents positively

million $XXX to the period prior same to was principal end, year term on XXXX. scheduled second for payments the due we of from an loan primarily of the Cash $XX $X.X refinancings payments on completed the quarterly million a paid quarter, due the in billion our facility. debt June interest compared Our the primarily in the was slight debt decline XXth, year, interest increase of as timing related to to during

is average debt slight cost X%, weighted of in due increase increase LIBOR to year-end a rates. from Our

million to liquidity due $XXX primarily down of is year at the reduction liquidity June Our as cash. XXth, compared end, to in

lien ratio the first As times, of threshold well X.X is our X.XX below June XXXX, leverage was XX, times. covenant

million. be point outlook low believe $XXX business July between year-over-year $XXX in be and this million $XXX and million to revenue on At between foreign in result mid-teen $XXX foreign for our rates. be exchange currency million to revenue rates. the Europe's exchange in month excluding on Moving in movements And will time, to million Based expected to third movements growth percent in expected is consolidated in revenue excluding XX quarter. we exchange a for QX. Slide could and $XXX foreign XXXX, and Americas our $XXX revenue rates, in is Europe's million, between headwind QX

million slight moving expenditures This first decrease capital consolidated planning. expect We changes $XXX is due the guidance project million to exchange $XXX as range to we The to part in be during XXXX. compared in rates as to provided our well foreign call. quarter in in earnings

We Europe new related to roughly the XX% business, made being or CapEx contracts. anticipate deploy other. related expect to including and to digital expenditures XX% Americas approximately displays expenditures to grow We to these spend and structures primarily existing XX% of renew to the of

of the and let approximately not current having XXXX, anticipate second incur And to we debt. me million in cash for closing rates the in assuming Additionally, that half call $XXX back million million in Scott of or $XXX interest interest interest obligations cash do year $XXX XXXX, this additional remain we payment remarks. payment including turn of his refinance obligations now, and

Scott Wells

Brian. Advertising healthy, we're quarter. Thanks, in business industry the and the remains we're with seeing demand in trends positive our current our pleased and

for Investor And first Xth. the Day we you may call. Justin more detail seeing strategy I our in having turn expanded will discuss opportunity have this New and us our of announced join Q&A And you Cochran, to in let to disclosure will City in seen, now many on over for York the person an September place morning, financial forward well As the the of as to call take our outlook. our session. operator on Europe CEO me the Americas as financial look business and

Operator

Thank Steven, comes question Wells you. Fargo. Cahall Instructions] [Operator go from from first Our please Steven ahead.

Steven Cahall

morning. Good you. Thank

business? considering Could including a you might maybe Europe the whether costs there. that the So, you us if too maybe Could play-in the comment and go maybe would of of not specific. to questions markets divesting deleveraging, transactions Europe first, especially And of remind some that major of maybe much strategic and on some you're a sense of any could that just couple markets of how review in on expect that's or when overhead that the you potential represent be away? bit you

Scott Wells

Hey, question. Steve. the for Thanks. Thanks

in have a have Just that business the terms in UK. France, business in big of the markets big we we we're in, a big

the across I then the are Italy that dozen as and a Spain, But Europe Eastern I big Benelux half first mentioned. and good the little businesses we meaningful in have Switzerland, well. and We have bit Nordics, a guess, and ones in presence

of what been on we a of can been limb we kind kind your we feel fair out bit, time. -- know long it's terms of chatter, a but a has question, In like went actually we lot again, know we told of you there a

So of wanted sense think can was you evolving. what given of how strategy. give give we've strategy kind you I the But the to some we on

imagine make can pieces of it hard very are that. specific that, there different moving that a to questions You about answer lot

Steven Cahall

we Sure. more seeing bit bigger maybe continues structural goes the And time sort really structurally Americas, shift digital. of be think do just think How think of growth on transition. about strong, we're the that little mix a to little love about it about of with America's So is more the that higher, growth algorithm? pressured, should kind we margins to on as as revenue. digital how Maybe business, better percentage digital America's that probably of versus just first, then a to inventory pricing over you're print is what maybe and

Scott Wells

Yeah.

digital we're the question. it's about thing And portfolio. digital a growth seeing across good strong that the really So

digital from in structure of margin of has all margins, contracts a digital things nature sign how different the it very not a because the a same had and an airport, So roadside the underlie. sign of

going plays you a still against So are in pretty be soft on out numbers. how question probably is is this think comping ask. as QX, important. time I'll we'll airports against -- And still we still I I'll -- comping mix you and answer that in, just dig get But other is to airport over seeing questions didn't a

is it normalize so really influencing frankly as this quite differentially sort the and of mix at And gets perform really airports strongly to point.

it be we're you about imagine, margins for over in as you will guess but pricing won't don't where as it say just premium kind there question in think margins, of might pre-pandemic. it it there back the been. get the of I pricing think multiple line I way think seen where tailwind digital from tailwind historically kind was be kind of that it years to for I'd So that I we've seeing out well. a And get the digital was pricing of has

things. of that me think other the your sort I Remind Steven, you are I question. if any addressed part there? missed of

Steven Cahall

was right. Scott. That's That you, great. Yeah. Thank

Scott Wells

Thanks, Steve.

Operator

you. Thank

Our Cameron, go from next please Stanley. question Morgan ahead. Cameron from comes McVeigh

Cameron McVeigh

morning. the if in US the the that as through? now any ad US ahead we market Hi. Thanks. net -- halfway seeing you guys are working how in for Curious capital you look are thinking are you softness Good market. And about year

Scott Wells

take on the the let market So I'll comment Brian and working net conditions capital.

now strong. right it's outlook pretty market Our

not have softening. really We seen

ad that of think going out-of-home. XXXX pandemic recover will to bit what well as XXXX we've just uniform look I growth in as bag. long of there is numbers, rates comping -- this trying that business. to the pertains world, not but And of the to down, things is at US, come But had against still much we seeing the immediately the really ad see We're been us is not the things strong you We're happening in we least we're important that just think year been of to announcements of out-of-home in things are particularly to to going perspective moment. were the of in to in level, I market are to when this our and certainly this my pullback kind the apply the is you cancellations together some we come that harken you're the when given see ways, challenges the to distinction, that the out the net couple mixed usually everybody because say, unique see competitors I'm And out percentage for, seeing in. you're that's I paying softening" are having think you of of in watch of from was not years. at to that's market are that of not some with eclipsed starting industry last since actually and not Brian, volatility world working bunch the but to people really a everybody's pretty I've one numbers.QX mode. come would it's sure it's parts and an I piece want when half that sure urge that the to that had. a really I And come things attention take not of dialog earnings second capital. our of at "oh across seeing advertisers, a the a I'm of because that's as

Brian Coleman

believe Sure. We'll capital enter working On history. end working the of to COVID normalize XXXX. vis-a-vis business continue to underlying the as as tail capital, start working we capital normalizes see we on

seasonal, and post-COVID quarter. also Now so there's from the a QX be quarter-to-quarter environment. that element to is of and strong unwind components But two is shifts one very business the seasonality, dramatic our one the is can is, was there

AR through seasonality, getting is really that the capital, of look increase also system. throw consequential post-COVID recovery flushed Americas And something, of at would in also in and and the and performance post-COVID kind out when and you of buildup of underlying AR clear that I of QX, large a impact business a unwinding terms payments increase of the both we in on Europe. things a percentage in in AR, function but revenues a you is much deferred it like so function in environment, see but the the as it's working smaller the

XXXX, So shift now. I working we're right think progress will patterns. And pre-COVID to as through normalize movements start seeing think that to we capital I

Cameron McVeigh

you. Thank Great.

Operator

Thank you.

Richard question Choe from J.P. next Morgan. Our please comes Richard, from ahead. go

Richard Choe

Great. you. Thank

up one the the and -- then US the question. business, on question follow to on ask European wanted Just

On third trends business, comp you that talk the seasonal about be difficult impacting you US since quarter basis? that mentioned coming your we're can trends of to that seasonal easier offsetting bit guidance little one. what should out are like this guidance In on versus period a a any like what that or we issues at weakness maybe comping secular year-to-year looking more

Scott Wells

don't take a why run portfolio. operates see a across pretty if differently weigh anything Seasonality I can you closely So, Brian, important pretty global this, and at and the in. QX listen miss is I'll usually you and quarter. strong

when third and of I the right I our in US, how do in see might it guidance, probably lot be are front we looking strongest the go. us, Europe, think actually But For -- a more at what third in also it's think it's us. in we strongest things the we

especially might So how lot in we models role like and US. these is gave in The a in we we play playing have forecasting lot like of that that. terms our guide -- things of that in the data a on of advance, bookings because based are while seasonality get a booked campaigns how how

if actually we kind in, of a that. into do factoring of So that secular us. front in think that consciously lot of I And have what we gets right don't see we baked

couple and So a thing like, very and of talked That's right soft. auto now the our aware about of we that's known quarters it. insurance in last we've has bookings how been are

making not this a in lot front fair of into we're of like of bit us. the give data guidance quarter, already mean, it's a we're I have and we -- when So well

not how kind it's characterize econometric you'd a guess if and there's color Brian, know, add. I of So model I it. don't I other big is

Brian Coleman

all I of said business you add, to I the only No. last what with and starting is year. The of would recover thing QX was agree

see tougher And so you're going to comps.

the that things take And component One out we it see that out was and we we that by half future about kind the about the in quarters want see against we optimistic we still tough But of the or of to to but get be feel quarter very patterns can unusual our Certainly the we did will analysts last that, we going look And abatements in least. you one-time that expectations, understand break think and the to that saw segment. helpful of extent to them. comp not as not a rent help there. at are forward. year are manage at of broke quarters as reporting we will you the moving help one-time second benefits and hopefully excited did

Richard Choe

think business quarters? about in next local FX headwinds. we Great. that in over the few How And then strong margin and on Europe, the very should both despite margin was the

Scott Wells

as high XXXX levels. sign who very business to hit and European European positive think close a in a runs I quarter I'll in the way. margins business let the then at come And see we Well, level Cochrane, I'll it Justin this

And color in the margin strong Justin, if so based levels on going rebound you wanted I to performance you Europe. we're or forward. to a see provide in recovery how pre-COVID know back detail little don't on more

Justin Cochrane

I say, I'd Brian. think Yeah, things the

seasonality more extreme. as it's pretty the business to Now, probably European the is it's US, slightly similar is, said, Scott but

is QX So QX our then is quarter, biggest than and QX. biggest next the QX

XX% fixed, is variable. fixed, very XX% base cost Our

the curve seasonal through goes quarter. as margin, the through changes revenue that margin the So at

to you point our -- next QX that in expect the similar So one-offs is think and QX XXXX, see to see I margins mentioning. can now think the strongest, so they the was were you where Brian on. I But excluding can what

to some we we because have still through quite need XXXX, some release of to came through compare late. from So the COVID still abatements coming rent it one-off

you'd So in quarter them been third the have seeing in XXXX.

some So we're a excluding normal much be that there'll slightly funny profile. back comparatives, margin year-on-year pretty to but

Richard Choe

you. Thank Great.

Operator

Thank you.

from from question comes next go ahead. Vitanza please Cowen. Our Lance, Lance

Lance Vitanza

quarter. the taking for job Thanks of guys. the Hi, questions. Nice

in much the there. Americas. start about New rest you Port thinking any how growth. growth, grew I Authority me you York, Seeing mean, it kind of start call how help Jersey Could Well, the me us talk felt good organically? the New Let impact from deal? about like-for-like in And of the let portfolio airport

Scott Wells

thanks, -- our now, years we're be the New in overlapping. the of question. York, Admittedly, portfolio for over So we Jersey New and been for are The Port building year-and-a-half first so has out Lance, Authority going number and a contract. to inventory of thanks that

it. a our actually of it's the actually the in I'll our disclosed of Jersey I Port the the New been overlapping within in biggest contract largest But actual overall, but numbers. of don't we've and percent business. mean will footprint is leave it Authority baked that So I expansion contract. we're chunk airports. York, that. contract It's from at there But be one New a airports reasonable it think has

Lance Vitanza

thought to extent overseas business wondering, business as vacation Number to international airports guess of travel Sure. than is detail remarks bit to about continues does domestic because a we relevant. past, travel. And you into from it the two, I no number you in wondering, loads would? and know little be that upside recover? maybe about factor. we there as that is I'm a is business that prepared cared pre-COVID I come right? passenger past, cared the more longer matter in the travel, sense And is that still this travel more in go overseas kind really, lot I'm we one, down is travel much And we may overseas in the it My mentioned versus obviously there? were Could additional levels. a But travel

Scott Wells

Right.

So source for have know are you're talking I cuts you're data we travel travel. two that -- international intersection we that and about. business those a don't there talked two about good actually cuts. the talking of about you're But

because don't And have the cross them. I'm two on those things to two I so going think address of separately, tab the I

travel COVID away international of testing international with back frankly being this at it's currency where level terms going been requirement, with travel In point. requirement the is beyond XXXX COVID and

now, departures, business pure within there But a very, part of look of I deals you it airports. very consumer. most you of can't that market, tell mix, a the it's consumer if part at -- has in of premium of how overseas premium it much presumably, even how it, some of So is much and just very, that and the our number is is

travel has is least my you business that know lot meaningful we're full. is upgrade. I harder sources the traveling of, it that pre-pandemic a And tailwind data on. a be XX% get we playing we that our tell that the so -- is is lot I I that the I would It's in It's business that externally see a fully of is expectation imagine that probably until suggest minority of is, some XX% in street to travel cleared sources year. XX%, But on and And be it's routes the XX% seeing won't going But our And is the traveler the at our are that back that for the travel still a that On get just from that business level. see role mean, we'll gotten to next have again, there that. probably, has of recovery way, sense end pre-pandemic revenue we the you minority, the tailwind out airports in the it's the pretty an international. to got. sources is very, all It domestic I'm business harder planes what that is again, level. that revenue the bit, from overall. an important in get. very a recovery my to Lance, fair This some gotten do QX do, And travel, will we're I in kind

this So channel greater during than pullback things the and airports have is might airports point importance degradation back our been of the that of and the that for all of they've of it some pandemic, conviction seen I one think is before. their mix their is that advertisers performance who did happened as a with in in has our advertising in their the

at your I'll that that I'll question. so and And see just leave that if answers

Lance Vitanza

out than displays? the And digital talk was you bit of displays, great could little number wondering how guess the a Yeah. XX% wondering that I'm of lot It just of if but just obviously, in then that's sort digital And versus just think, the I'm of digital Thank improved less percentage yields that's performance. I'm displays better revenue, penetration turning presumably, does. called digital I about, ex-FX, growth. growth, revenue sort added, growth at, you if revenue I up XX% get a certainly you the to know much Europe, I grew about trying to we of you. that that think

Scott Wells

in let let that. But Justin, And make little the in to going margin, I'll about don't it -- pretty digital growth through. One general you our a just why of is asking geography. panels the Justin exceed talk Sure. I'd comment is that, much though the drivers he's that bit in some address yeah, Justin in I'll of about growth? how flows every question growth

Justin Cochrane

Sure.

what screens; QX at we had XX,XXX. we QX disclosed a look so XX,XXX 'XX, you if 'XX, So last year,

screens. one-three with far growth XX%, percent excess So revenue is you're increase in growth. screen digital digital the in the Obviously, right,

especially think the closed still shopping COVID someone in noise because place we certain QX I back like markets, think during things some where there's malls 'XX, restrictions in at 'XX. still we were in like some still when QX numbers, France had had you

some So where noise there's digital. malls somewhere still we're like numbers in and is the highly

as proposition, digital see as until I COVID. into we and your see QX really markets, our stronger of to some in get you and And Europe, we digital. across on start we because it say that also across comps to deploy that grow useful we becomes more to scale more get start in sales or won't stronger markets, generally programmatic you going as and What yields of what's really digital. digital, go down different journey on noise helps you with some strong So, would is, QX

still. screens. helps the in outweighing revenue to a growth percentage the increased far was closer hope the overall of comments. that see I removed, But numbers growth. real obviously you'll and in the But it So bit noise Once that is noise

Lance Vitanza

asset you. wondering, is price able the if complicated buyer it realistic sale just you to missing to up then there? portions than know for front, It at to this. am for But you I that a you'll on more less does. I'm find for just me of think back find a that couldn't of profitable Thank finish be like the buyers it's I Europe, all And Europe what and

Scott Wells

Yeah.

of on I Steve to are were we've said I shook we're lot diligent out feel every a I'd we -- of why. we what on limb and -- a as learned said we descriptive and let what we kind we thorough assure and Lance, done kind in being and a we think we've you gone what like about strategic in we've to the as have But doing just were lot what a learn good very we lot and the and learned tree process continuing messaged. me that

Lance Vitanza

that Well, have Europe real appear and right. point, to momentum, would some to I mean,

like that penetration But digital there appear is I'm the something you mix. the of given that increasing and doesn't hurry I it a I case you're US, structure So such been missing -- the in and rates would always the have just rid there mean, to have I the in front? margin seems the asset that guess why the that the the understand big it first mean, with that business that's get place. question growth that begs I in on

Justin Cochrane

think dilute talked pretty Well, running get set the and I lot to expertise quickly. do in and you across digital how really focus, a talked a one challenge. transformation large about trying country it into of transformation execution digital well we've resources platforms, you is about a importance of when And broad we've and

process that had said reasons. as on place a the comments. where embarking strategic was for that So our they I not reasons right the in are sound, get and just able or we were the in marketplace think The to we we

I So we on think this a lot I think that said topic. --

focus much and strategy our think remains share Lance. you, that's pretty I what we can with to think I

Lance Vitanza

much, Thank it. guys. you Appreciate very

Operator

Thank you.

Sachs. go Our please from next ahead. question Jason, Kim from comes Goldman Jason

Jason Kim

But a talk It's higher pricing? you for current any price seeing been very your you and outdoor picture, increases? the Thank and general. ability push-backs given about Great. in get macro management terms in are you much. environment to of Can strong yield business your advertising

Scott Wells

-- something if easy, what So than we it what price we'd we have. is it you was negotiate have was -- If even on. always than more

we're aggressively value value measurement. on we tools is advertisers. that thinking you assume which what touched receiving. the I think on So by think the about the that delivering I I mean, you should counterparties our dollar they're demonstrate of to one And of are Measurement

on of this have remains I have I out-of-home than think brands by best well kind on immediate. it's the that but in we And saw I had object out-of-home you to their they less value referred true conviction play roadside having results of a people in where impacts very and as on now tell airports, their would pulled and out it.

would stand-on huge we're very rural the Hopefully Lincoln be course, this on our when we have sound think for different even that to as you're of very something it push there's results and I on sits pricing footing was pricing in they easy, So a if greater and the But sign versus inventory. addresses is back than array value are. talking of for about that instance. a our Tunnel conversations of what

this matters a great So deal in scarcity business.

Jason Kim

year. sheet market? become helpful. smaller, given you. just position. capital be divesture have volatile the maturity then maybe strong, regarding the But a for fundamentals is sense just Thank European your general the to bond, That's We've the size the you that bond more extent And the the company. asset good sale, to maturity the liquidity more are for first strategy, CCIBV for broadly get wanted state your balance addressing the And of this the got Brian, markets a outlook thinking in are to about fairly business small of continue they your how XXXX but is

Brian Coleman

post any Well, that we're for definitely a we position in refinanced when was while of design, have somewhat major fortunate that and the it maturities did we by separation. don't a lot

and pre-current pretty We whatever of rates then those conditions, streaming refinance that still cash think kind spoke maturity mid-market the And on were be. notes be first relaxed of The CCIBV up. and I market the top time. we would about flow we be would have material would sit

about we it's the the also to future conditions think may sure And philosophy market of review have impact our notes. strategic some think outcomes But that so fair on going I in on extrapolate time. or current and I'm not the that review of to point

markets the directed shrink at perimeter producing keeping be be the flow directed size the huge. and within of sales eye in to as I could the this shrink, time course, or to or being assets the be think I be upon function a European flow financed required in that of we're would stream. either markets. pay-down cash It It's or of It sit to can issuance to that But time does It our proceeds finance look, free cash And think being can and reinvested EBITDA on it. notes or not both. proportionally. large, at note of general, be perimeter. thus that's those the seen the US refinancing in stream, at by European

or right It's something to it something address worried repayment think about unless options. repayment being But by the it pretty good not we trigger I partial we're repayment of to. we want under to about provisions. now, or need able if if we lot a have being able feel we think to we I refinance

Jason Kim

September. helpful. you That's at in and Investor much Thanks very Day your see Great.

Scott Wells

Okay. Thank you.

Operator

Thank you.

question go from next Barrington Research. ahead. Our Goss please comes from Jim Jim,

James Goss

things, one more just transformation, for strategic review? of the that assets on separation. of points some sold think possibility raise the of Couple good are confining Does of company. the we is very spin-off the the digital morning, I the of for nature focus Good to that context or the but assets And thanks a about within require it

Scott Wells

Great.

I said there to able we're options. what I not table strategic kind a on contemplated we've we've review, time think look think and think it, of anything we at as on on this But the wasn't say I was Jim. the broad that taken

James Goss

of mean also a long guidance the bit with were third but seem out what we in domestic Okay. the looking the And didn't but for of you've addressed quarter, at terms this comps that operations at was imply of least international there to softer. United States? that belt issue -- did than the to more a I wondered it's a in the of relative weakening you And if

Scott Wells

I'm to little I the were may heard and answer the going be question. answer. answering you me a softer I if an guidance quarter it I'll I'm question it But Europe what third think is than let then not know. think I for anticipating. have

likes he track Let's we're if Justin can on in. then and lay make sure in

think I good we QX. feel pretty about the

Now the keep strongest in in seasonality quarter. third mind the the businesses QX is of different

a Europe. strong Europe a off quarter coming strong for very then quarter we're So for QX, and into we're heading

QX so last remind it that for QX is mentioned And of quite year. also in the frankly you part seasonality minutes. the I began earnest and of you recovery Europe in

those against any want it Justin European seeing are emphasize we weakness strong to over that we're But certainly one, that perceived the in markets. up think I who's over than to So would I'll turn I much closer am. comps. I again heading comments for

have kind anything you add? to do Justin, of

Justin Cochrane

any of into echo I QX. mean, we're a Right We're I seeing Yes, what said kind Scott strong about weakness is now, running say not there, we're think seeing Americas. to the QX. I'd what

be worse XXXX As the because the looks of a it in in but business would of it strong Brian comparative or said, QX to the seasonality stronger.

comparing just it's think So no, quarter. a in it weakness currently, stronger I is QX. the we're any not QX which to seeing And you're because

Scott Wells

question? your address that Jim,

James Goss

finally, in have future? there in lately for first, spending the a with have could last in bigger what we've in quarter of of vis-a-vis impact spent it began The the bid aware at more that perhaps there you potentially next people looking it had traffic expecting that one it it's I'd in just airports because smaller measure airport? that when airports time just over time the ago issues greater seemed coming the is of to guess. would not line saying of But be, I just tick-up a airports the And so does. year? any the are unduly your occur. we're was displays spent know there rest speaking future I with some I of a think other trying improve in business the And more, moment do up say and of audio. the that just future business, are might we could measure rate the the in a the that's year you're get it it time And Yeah, relatively sector like at Is that listening are how business. is to back improvement the profitability in through had value was that the those

Scott Wells

Sure.

have for given that's So contract not. renewals trying reasons extensions nothing we I'm a is of contract terms of steady not do cards. in at in set on relating material that we But Certainly, pretty the something renewals time. any you're you to to to on can get ways lot you're a the working incumbent imagine disclosing if sure or acquire if the of airport

the just airport in affirm are nothing that really than happening So portfolio again. other RFPs

it yet? improve it It's improvement. to kind time like double Can to It's something the be or are structure when whether portfolio rotating that? monetization, there's there to of evolve will eye to say any But going government is innovation in foresee contract who in there'll regard kind question. of ones I inherently media to come terms able we contracting the make the be larger of profitability we so to airports limit. them are don't is that We in organizations. dealing and outs up they're ways and Part has a to going a with parts a as There's terms also time and And more owners of losses. be that two over can profitable. ins wins be somewhat not increment. be like and the certainly is, going think going contract that what target large airports of that. an terms that would business. your more good we or on one constant the over With in roadside But you're on to I municipal I going as time they as have be announce

medium is sort around you our And your question the pricing curve measurement. actual that On expect terms will is relative attribution to part do people as is revenue I which the what around that's well the still in same in do getting techniques is earlier as down the as side, things category. the some which type to both There And term. can well of development and its metrics of going but of strategy airports we're the just second both growth of roadside, as capabilities will space planning would innovation able that expand on in measurement on it It a support that is within part into revenue of provide is moving nicely. lot and our attribution. there that in

answers So question. your hopefully, that

James Goss

much. Very helpful. And you thank very

Scott Wells

Jim. Thanks,

Operator

you. Thank

from with comes next Deutsche Our question Aaron please go Aaron, ahead. Watts Bank.

Aaron Watts

Thanks on. everyone. today. me having for ground Hi, lot a Covered of

In politicians? for a I if quite I up this. robust. had to from I guess apologize digital of last here. media two up more boost midterm probably all I'm wrap missed US and So at we've I on how And just quick peers first question palatable that outlet being the versus is political stacking spending if you're your just maybe your the helped just curious some that election? given has heard

Scott Wells

emphasize We small a larger know in towns political enthusiast Well, of part out-of-home book. He of talk elections about I always a because source small it's skew on also local I who's are the those he his loves just to the great competitor an think Sure. activity. although it towns.

RCCC, we're to that have going RS year And But a I'm them constantly not abilities digital has BCCC, it. call of make And of leap political have around innovation used the Bs to the of big And and the the so BNC. to some lack and both for not the we're political the there we we it's hasn't until We the happened. some guys trying. out-of-home. a and conferences actually educating those big kind big on the the have of going been RNC, need some year need that

but that this we to So a we it is something not work think it's year. I assure be you it big driver on going

crack right sure. on if it, though it that digital I'm when will and code we is the You're the that vehicle be

Aaron Watts

does That's out and Okay. your US liquidity pipeline a secondly heard the peers talk you What's And And we've to participate? your on allow seeing? then year. active fairly for laid for outlook current about you fair. the the you're M&A, us latest

Brian Coleman

on an get let about may jump I been about talk have view we activity. your and Well, think but in million M&A active participant. Scott I'll you we $XX

Scott Wells

as Yeah. we're our not That's focus. to out active that at the in There's answer as of certainly to earlier one there. driven level part opportunities why we constraints want your point And and by is that we it questions competitors to of aggregate about have. would the

our focus We pipeline aware are benefits would… of you of a One other a the but But things assets Brian, ability good what sale. focus of be more definitely to have it's US also we're would on energy environment. definitely M&A. There constraints. definitely the very for are

Brian Coleman

upon US going our right. that's also executing but acquisitions the and It's balancing of sense in think makes there out the I position. that the that liquidity with balance

Aaron Watts

I time Great. always. as appreciate the Okay.

Scott Wells

Aaron. Thanks,

Operator

you. Thank

ahead. please Barclays. question final comes Courtney you go Courtney Our from from Bahlman

Courtney Bahlman

congratulations Eileen, one Thanks much quick so One me. Hi, on for and question Brian. Hi, really for the Scott. results. the

the potential forward, the sale mentioned. of Moving of you European regardless assets

the thinking how guys for in be in longer-term company guess should terms and really generally sale? margin a How in we digitization should I a profile. job have about about reduction thinking obviously, you potential digitizing absence shifting the longer a thinking relatedly, that sweet the capital higher a In be are you good and between we done the deployment of leverage footprint balance the guys about spot to of board leverage term?

Scott Wells

the me right tie a don't Brian add at leverage. to let in the I run So things take miss if or can then get and this

to conversion. of the find gating can. we've to the to as where is fast to that been on able structural digital conversions. of do years going you municipalities of particularly we're we're able harder as conversions. situations factor think the lots be things get to constantly gets we digital do continue there that United to resistance in those the make on working just roadside have and I against conversion. things legislative The And States But to permission on on very that all more you primary consistent by to as that kind us chunkier go up have cities let we're and because And proceed end that

that's had of we that any strategy the those (ph) of haven't something that is economics core want activity. a really of you -- really we constraints on to and that that our conversions growth are type don't So part such constrain

conversion play. a got in there we've make a them impact some about think terms of Those ask? purchasing this beyond of we digital of measurement are I helping vectors were the that to and bunch ago minute talking of just sort of sorry, I'm you the environment. are come creating the because the more things did you demonstrate have assets something valuable into can to an that

Courtney Bahlman

sense. No, nothing perfect else. makes That

Brian Coleman

Yeah.

likely is tuck-in and goal be because capital both have focus they we what's think mean is M&A change and have leverage the thing factor we're us there. on key only investments function investment, returning going And the to sides would both and have add balance M&A in a the whether that, digital decision to I time in of the opportunity successful recognize is make reducing a what's of debt. a a fraction actually conversion we EBITDA that it's is high else that those needs which in I anything that to certainly function I have our doing increasing think deleveraging whether for is likely happening. path Did just to or every work end to reduced to on to to day, And that activity, the we it's we the I have at going and you at of of we'll we getting all Europe. to be on leverage don't look that. But to be Courtney? be reduce

Operator

end Thank you. now That session. is the Q&A the of

closing for now you Wells to over Scott back I'll hand remarks. So

Scott Wells

would and it is, got strong for Xth. we Thanks, business prospects, seeing and we're Investor where the Great. to really good our really emphasize Day folks I we've and looking everyone listening in. think we about September growth Laura, thanks just feel at forward on

week. the a all of So great rest thank you have and

Operator

joining. today's This call. Thank for concludes you

disconnect may You your now lines.

Clear Channel Outdoor (CCO) 12 Aug 222022 Q2 Earnings call transcript