Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Clear Channel Outdoor Holdings, Inc. 2022 fourth quarter earnings conference call. [Operator Instructions]

I’ll now turn the conference over to your host, Eileen McLaughlin, Vice President of Investor Relations. ahead. go Please

Eileen McLaughlin

thank and joining call. our Good you morning, for

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

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

the schedules call Principles. reported provide to earnings GAAP presentation. measures our and earnings do that a as We to reconcile measures refer Accepted performance investor will of certain basis today's also Accounting we conference our on During call, not perform these release results Generally part with that non-GAAP

to views to the turn XXXX, February no XX, be now presentation, and of a turn on Also, Wells. Slide at this please provided today, X the in note to investor call Scott as will and of the Please call accurate I speaks the longer replay. may over only time that management’s information

Scott Wells

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

four in company, pandemic, a rebounded strong of in year revenue with We up quarter for Our our the of year. off the benefited consolidated quarter and compared very healthy assets. for exchange foreign to soundly demand we generated strong out excluding digital as from capped of results $XXX coming our million, in performance our guidance, as X% the fourth movements line approximately prior and rates, our

fourth of prior Our record the record a exchange Americas a XXXX, ahead year. fourth the movements of our the against for consolidated revenue excluding was revenue of in in quarter also business China. quarter We quarter rates foreign in performance delivered

European Our strong also ongoing results European review delivered revenue our despite business Europe. in strategic turbulence of and businesses the

strategic the our XX.X%, company-wide full-year, results improving progressed our our movements operated during into high on revenue rates. this did hard team media I'd past of while transformation in work contributing we plan, year. growing to the to at advertisers, our and in consolidated in a We and a level powerhouse, and pool productivity. as visual a reaching we technology-fueled excluding up executing like for was thank dedication exchange their foreign For

and drive evaluating Our one structure an a in both terms increase debt. story improve to ratio efforts and our in productivity, in our our one of operating reduce also options capital flow. revenue, further is focus operating It's cash leverage of our to on terms increase gains all

including our are elevating our the believe strengthening our customer digital in tells digital our growth. expanding remains these our data experience footprint, continuously with On are transformation to the us clients operating plan, of experience. we our our offerings, improving experience and analytic central out-of-home. to We side, efforts investing provide leading media, digital from they to mass the reach of kind expect coupled the date to ability with And

rose X% in quarter, foreign which accounted digital quarter, quarter compared last consolidated excluding the fourth to for of during During rates. of movements fourth the the exchange XX% revenue, year, our

a leverage cash buy, We that efficient the more flow are these platforms scaling to to reach, us the and expand our launch. continuing footprint, faster majority more while in addressable revenue we're of These traditional data-driven, supported and other easier to and As convert efforts in better our of attractiveness year. results operating allowing past digital our to to to out-of-home the platform. demonstrating relative elevate advertising. our media initiatives ways believe we develop solutions We're more making outperformance

our in last and September, As in cash plan, on improved guidance over confirming and believe we fundamentals as the can our execute operating strong long-term leverage shown are today. the we drive we given operating model, inherent flow provided time, we

closing Beyond operating we announced the enable us definitive disclosed continuing capital European to use that our the intend strategic and ongoing. to the our Switzerland subject that to position, to to remains value remains execution, in margin At $XX.X will of proceeds our which we're we businesses appropriate an believe net the to anticipated of conditions. business. year, business review liquidity avenues while inherent establish maximizes close in our for priority the low review to improve also sell low We structure previously committed our million, agreement

to higher sales expected which intention generation and operating time over As we said, have improve adjusted to flow Europe is of leverage EBITDA proceeds net a our margins, perimeter is potential minus help substantially cash the our for through from with CapEx dispositions.

have our to are we able. we success communicate previously of as cannot the when we efforts, and or will As guarantee timing continue and emphasized, details further we

year delaying billion, the tough best In started a billion, Turning the in premium year. rates. although And, few first wrapping revenue movements are remains we've business or to measuring, are exchange foreign quarter our reducing campaigns. we're up between $X.XXX strong, categories the a the and $X.X comps since US, prior reminder, healthy, with reach the excluding as our ahead, expected and locations upfront with faces to

quarter and XXXX. emerging due companies tech back to spending crypto a we on the to the Specifically, national first basis, on seeing significant in softness are pulling of first quarter relative

advertisers recognize they not on seeing year's a in of point, in of dynamics advertisers have fully seeing we're changes rebounded major easier with we're as from continuing constructive, and this some to of macro should slowdown the we with Based first QX, Dialogue we've a we're Europe, specific an remains demand no Europe momentum pursue. to In the continue very categories quarter. at slowdown. advertise healthy we owners can any concerns. broaden universe and seeing we saw new hadn't markets have I conversations, indications opportunity last and the the macro remain in categories. to indicated maintained Rather, will impacts develop So, we are due within to all and they fact, relate brand need also to comp visible. both our that note that given in

Europe to off overall, expectations. start, So, good and a January is our than in came better marginally

our our are full-year. optimistic will trends eye quarter close both and the and guidance across markets, plan, we our execute a about business. Brian the first on keeping we As remain provide our for

let And Brian. with me to it now over turn that,

Brian Coleman

turn Scott. you, has joining good everyone, a for Thank Slide our Please morning, for Good year been and to business. you our This X. thank call.

our to comment through going want fourth results. on I results, full-year the briefly before quarter so, And

and for was of I or November guidance detailed our updated provided results point out, during clearly and the demonstrates in team's metric were every in remain to X. resiliency guidance. included Day, business want ability this ahead my XXXX on from the In view, for on we actual know, the you our our pandemic. the rebound of As Investor guidance to which course line

to quarter reported Now, results. fourth on

believe talk I'll EBITDA, our our the compared reminder, operating for performance. measure. XXXX, EBITDA also We of the expenses changes about during a noted. when rates, unless fourth results, amounts of Direct movements other I excluding comparability from and discussion SG&A GAAP quarter segment As to evaluating the the excluded are provides quarter expenses exchange refer XXXX, fourth this are and and and and greater fourth restructuring quarter that otherwise are in foreign XXXX the adjusted a costs non-GAAP adjusted include our of of percent results, to

and continue conclude EBITDA reported is asset for adjusted the Additionally, now will we until sale. Switzerland, an which sale, be in considered to revenues held

During the revenue Caribbean excluding airports. US which consists South, segments, operations several in and from of includes four our countries our US of the fourth have Nordics, in consists UK, quarter, reportable And Spain, of consists which we number Airports, France, operations Europe. which which We operations, other Europe now expanded and the in reported Europe results. the segments central of Switzerland, North, throughout airports. northern Italy. and and America,

are as in disclosed and other. Our remaining Singapore Latin operations America

use as comparability. reporting this format, the presentation part earnings our in and fourth quarter segments we quarter previous the provided guidance of was prior results third our Given morning's for release our

the years was a Consolidated new includes results the XX-K the XXXX, this However, for morning and decrease. using for ending $XXX fiscal XXXX, we XXXX, revenue quarter the X.X% million, filed segments.

in X.X%. of our foreign was guidance was was million. $XX rates, EBITDA mid-range million. up consolidated million, consolidated X.X% improvement exchange income $XXX net the to over Adjusted an million $XX revenue revenue the Net of to million, $XXX million, year’s prior income movements of Excluding at $XXX $XXX down

in a was in metric excluding in was $XXX the fourth quarter, rates, primarily exchange movements Excluding $XX down exchange recently, the result million, million due rates. foreign movements adjusted of a abatements X.X% and EBITDA we the rent is AFFO, rebound which as business. lower in to $XX as expected, introduced million, foreign

Americas X with revenue Slide more to of line to $XXX million. of surpass the XXXX. for review even And guidance results. was we up revenue turn to with $XXX million, up of fourth revenue X.X% continue to our pre-COVID QX in quarter levels, compared Americas range Please $XXX million XX%, a significant,

higher million, that accounted The to XX.X%, lower X.X%, $XXX rent new X.X%. and QX down $XXX of were margin by increase back Americas expense contracts, XXXX, of expenses and by have XX.X% revenue, up spending. lower sales, XX.X% with partially record adjusted was site EBITDA Americas mix lower Revenue owners and the up up and driven in X.X%, to for revenue, accounted As record against pent-up which from quarter prior tough in million the the year. was XX.X% a as year and down types. Americas by revenue digital, of quarter a brand large variable revenue, primarily abatements. due continued Local This fourth Scott partially pulled sales which primarily an X.X% one-time printed EBITDA SG&A segment was across to lease National were of driven a accounted to to mentioned, growth, for airports in Segment campaigns incentive from items. primarily adjusted airports demand fourth comps offset and compensation. Direct from revenue, down by to revenue, this from was increase up, due display $XXX X.X%. benefited Digital few all million, was quarter performance for formats. XX.X% revenue was last of operating offset deliver due

However, Americas margin QX was more with as expected. XXXX, in line

spectaculars, was Slide bulletins, includes revenue $XXX Turning street our airports billboard the transit. X. which to portfolio, and from other revenue the prior wallscapes, million, up Transit and by out driven with slightly up was and This airports posters, across X.X%, slide furniture from $XX displays, revenue authority. to million, and breaks up growth Americas X.X% including into port year. primarily billboard other, the

and up Now, billboard Billboard rebound X.X% and of the revenue food, X.X%. media, increases and million, on $XXX billboard to billboards quarter, other for and X continued and largest on in and total to revenue. revenue and hotels, now other Slide was XX.X% fourth and travel, in a accounts The digital more Non-digital detail bit retail. other other. with in down insurance, declines were was for to

revenue Slide please the driven transit higher and notably in Netherlands. and Italy, was My foreign was segment, million line included with Denmark, our up QX adjusted $XXX EBITDA other to in Direct our commentary guidance Segment as the was by by and in growth of of margin new lease Norway. contracts and with adjusted in Spain, well $XXX X.X% the as of to exclude digital million. turn and Switzerland, XXXX expenses lower the Digital an was driven ahead increased our increase programmatic end compared X as for $XX and accounted high UK, Europe. Revenue new contracts. up well XX.X% adjusted range XX.X%, the Nordic been X.X%, segment, our most operating and the Denmark, exchange driver Europe $XXX largest increase with new largest latter were countries, have and Spain was to Europe the certain UK, of In France by of movements for to a growth to total also EBITDA X.X%, driven LaunchPAD. comparable was that in North contributors to performance of revenue, is revenue in in platform, revenue in South The to million, being due loss new Europe inventory, prior expense. The review Europe's results of period. million. at on Europe was the rates. as SG&A Next, our success XXXX. site Segment year, up X.X%

to CCI on BV. Moving

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

$X up XX Slide spending, prior capital Now, in X displays. the decrease fourth moving ramped up we a on expenditures. to totaled million million, CapEx million year. review our of particularly and our was quarter, Americas the to digital as compared of $XX

of was new movements and part the CapEx foreign down in exchange. contracts large However, to million, in timing in due Europe, $XX

addition few our also close quarter, want we during a expenditures, did in that the continue acquisitions In capital I highlight US the asset to to $XX to more million. totaling

on the being focus in uncertainty, liquidity we renewed macro are amid selective our our current Given more acquisitions.

Slide o on Now XX.

offset fourth in EBITDA and changes cash The CapEx, result capital in declined interest decline cash a being by $XX increase adjusted was well quarter, During as than and due asset in receivable. cash an of equivalents working to million. part as accounts payments, the more as acquisitions,

down to in million Our of $XX XXXX, million liquidity $XXX was quarter, liquidity as to due third primarily XX, the reduction end cash. December of at the compared

billion of Cash compared December due B flat was prior the during period XXXX, higher Our million year, with paid September XX. debt basically quarter, on our in for slight debt was to increase $XXX $X.X primarily floating the to XX, as facility. same a on loan fourth interest the rates term

to cost average XX to compared debt weighted in debt was the of cost LIBOR increase weighted of X.X%, a an average Our as September increases of XXXX, rates. due

our X.X compared first agreement December XXXX. of credit The XXXX, at up X.X threshold as times. was As lien is leverage slightly XX times, covenant September XX, ratio to

headwind to contract. will believe million of between expect in foreign for in and the movements $XXX million, a the to Overall, both full-year Moving revenue quarter. $XX $XXX exchange exchange mix, on items, US. fiscal Capital with our to the excluding guidance XXXX, $XXX to and in X% continued expected interest our first and movements between we Slide consolidated $X.XXX rates. with down our of for XXXX. XX EBITDA the one-time this foreign in a in expense. At the $XXX rates. the first digital EBITDA in relative billion, QX renegotiation range focus are lease month-end Based XXXX, to in footprint adjusted guidance, and the of drivers year-over-year effects the to expenditures $X.X time, movements adjusted million to we are quarter AFFO million, of rates, $XXX foreign to and revenue of revenue foreign due be site is revenue point investing result primarily large excluding The million between growth in million on on reported excluding be a related year million existing to in $XXX and exchange exchange year, million, rates, guidance could January of billion from $XXX currency guidance consolidated in be increased

payment of $XXX our refinance guidance rate million, floating be increase are result Additionally, additional facility. year for do debt. incur interest on a over higher interest obligations assumes as expected XXXX loan to we B that the term our approximately This of not cash prior an or

in see continue revenue to grow. to full-year, can expect our for you our As guidance the we

we closely, the monitor should know However, pivot adjust have to will ability our the need our this and if to but continue expenses believe preserve in we to and quickly proven future. arise, needed liquidity how

back closing call the turn me his let remarks. for Scott now, And to over

Scott Wells

to and despite us off the are advertisers our we regarding assets, to committed generation centered our strategic priorities, of and efforts we margin support start great the divesting time, on executional the good to our core broaden and by a to against business, our we believe we including elevate remain and lower can capital believe these the deliver and transformation, the a businesses, driving business, macro results positive priority experience customer the to enabling European We're XXXX our clients, Brian. digital uncertainties and taking structure, pursue. team lower pool executing our We excellence. debt. cash addressing for steps ultimately and Thanks, same environment. our At and reduce year will necessary some of improving centricity, a accelerating remain Supported be

session, the call. let me the to us And over turn Cochran Q&A joining now, and the will be call for operator Justin the on

Operator

question Ben today Thank you. from Swinburne Instructions] [Operator Stanley. Morgan from first comes Our

Your line is open.

Ben Swinburne

about talk you shape for talk category-specific us to the Can and mentioned about beyond. You the your year? US, QX in bit how you Good the of headwinds. a about faces first the off particularly start visibility maybe quarter, into little morning. one But here. thinking some Scott, you're

a as be should ‘XX since year. pretty then, we material? be move helpful of last Anything there which would port as business that bit airport your we the like think be we And out year, from might other little the segment, you through What look that bidding we now And you the massive for outlook about outlook growth may airports you with business contributing, there growth too. into improve expectations maybe I kind have, could perspective can talk have on year expect you for authority and a and obviously sounds to the ’XX? is share us for reported

Scott Wells

morning. Ben. Good Thanks,

is pause a the business we little it's and think It’s of for in or the it that attributable to been the momentum pretty in and pretty the quarters, narrow it's year, a have QX of seen I So, shape - and sort QX bit a five account-specific. of last of over have things. couple the a six

know creating the of the prepared we beginning I that's the upfront slowness little of few in end And QX. last We - the at by that had never particularly had companies. our what to QX and they that look I also it's strong. as in categories well, ephemeral. of - best that comments was little emerging betting, our year. year, to proven much ephemeral so, There were just one. crypto of I’ve that that is the a QX, of were in a of ephemeral this sports And last but that and rest year were year bit We ever a exposure into companies of kind bit visibility always was referred that's tech really didn't But offset have

layoffs. of had do so, heavily is that, companies make there don't about layoffs people advertising to bunch announcements tend things a happening while like what to that and you And want are is and we believe

moment companies described dynamics had a that I You had the the ago.

last thing late a category us, I'd the the out stellar market guess is where schedule are the out I plans a release versus markets. But and year film other wasn't our bit in laydown couple bigger have year, this and call strong. early particularly is XXXX and a year, thinned little it important dialogues it’s sort was obviously strong the people for so, an of And of that that's a for ago.

little the So, bit seeing all year, that. be how think we that as at make is what not us builds, on the whole terms to and of of of softness things year beginning here going the of a guided combined, a in those accordingly we're

information represents truly moment. So, our I think have best the at we that guidance this

our call To airport your of question I'd out. a couple things segment, on

terms I Newark play there's exception selling seen business year kind York Day our certainly material, get in Investor of we airports have kind airports, differently think sold for we of more think has I in ago. we regular there's go kind five it of gotten Terminal because we've it's possible COVID, airports. the as naming - we've about There's things of outs. relatively than kind it's sponsorship would just contracts happening certainly, and in York, call are and the next through that more meaningful. Authority New of really doing But talking September, gotten of And one that none a mean, in and A years But taken ins We've lot That we like we look looking few live in I quarters. mentioned this out to the coming hot buildout of when there's we travel of on this, a contract. mentioned kind tailwind rights QX nothing had still of year, but type, airports been and gotten verticals count with schedule at them, I when things. has New of in might very were I'd would of off. the travel's of creative out that's going not our renewal strong into digital, as be of don't Port for did - last note terms and our

still been been big the we've innovation guess the mention made, by run. selling has I meaningful, remiss didn't to I airports. has I'd more other room if it's sales into and be that that America some doing So, force the

and almost years and cross-selling that's have the sales between meaningful, was and America force, pretty ago airport five something negligible. we sales gotten the that's force that So,

those things further in of some all give airports think that of us room run to growing terms business. I So,

Ben Swinburne

Got it. Thanks so much.

Operator

Wells to turn Cahall Fargo. from now We Steven

Your line open. is

Steven Cahall

first Maybe into of you. Ben's to some questions. go just Thank a deeper little

talked about being these of US. the some you there of softness So, pockets in

think in comp had fewer headwinds said you Europe. I easier that and you an

So, to Americas the case within full-year, the just maybe, versus about Europe how an usually Could it's we which do think how not Europe. we growth or organic guidance, about on think QX whether outgrowing Americas, is the for basis. see

giving So, get there. it and lot would of future to love AFFO you've started the Brian, value commentary company. Scott, the some and for then, a potential a metric, could And would create certainly seem like structure for REIT

is obstacle. to big ideas divestiture into some debt Brian, still maybe manage sheet. the can this sounds you think And I I the it still your might you beyond have of of like year Swiss comments, balance do if the some things read

think So, shape I'm you've little of Thank start lower leverage. this you. got options just curious sheet level year you to what to to the balance a

Scott Wells

morning. Good Steve. Thanks,

like history, the first and it the take and let Recall the QX considerably US. second infamous that Europe year us, when of ancient it me that is hit part, seems Omicron the hit was with I'll part. let but take - Brian So, harder than last

have on. going And a a exercise math were And countries little were Europe within omicron. that - just it's there hit differential so, with bit you particularly, a

as about how numbers to not an those you Not of go. probably should Europe there again, way true think that's net going think about currency. to obviously way way, outgrowing of are the from not a the confounds parts about are And of think exactly recovered is expect unreasonable I COVID. that it. have US, be And XXXX. QX full-year fully recovered will are of Parts Europe little you so, the all ahead because and Europe and probably mean, currency geographies that QX, are. full-year, that's actually still you But bit always when in have part

there's but bottoms lots of many that Europe mix. probably to guide giving it, are try very it portfolio. moving so, because bit were sub-segments. pieces a little so very to did in build we but there guidance we in just consolidated kind in becomes revenue the obviously, unwieldy a And little It's But massive, of not specific across toward up, of mix

a we it mix. did ask flavor the it that's why hand to as I'll Brian that you to And second gives question. So, address for the or But whole. a hopefully, to

Brian Coleman

Thanks, Steve. Sure.

size to think I a to assets path and the the story, portfolio the obviously deleveraging is of both right level. REITable our getting of then REIT optionality

the going expense, on Europe through an asset And costs. ultimate And carry important meaningfully of is to in of it's not is so, it capital strategic least with so. resolution, business, if lowering review deleveraging, while not element corporate reduced obviously probably does It that. at the directly sales, simplification the a

can being to speak, I be and all And think this the two look getting and position there putting really We've going to right into of open-minded visibility on premature be the to company the to asset could I we're table, options into we in to process balance But we that think now the do base do the kind place be so right needed, options so, important some delever as The really an ultimate outcome the about but and to to runway. to consideration on eventually it'd and those. going ourselves things other REIT it's other that the will the delever. And are in sheet. business. a dive obstacles, has got where options may need we be

Steven Cahall

Great. Thank you.

Operator

Vitanza We Cowen. turn Lance to now from

line is open. Your

Unidentified Analyst

on for segment new is on is really question Hi, Lance. My reporting. Jonathan first This good the morning.

know, the like curious led Just new to to breakout? what

Scott Wells

we management resources. allocate It’s makes a and manage based determination businesses on really how those we how

out that to elements business breaking size also that three were contributed think of out. So, and to airports, I the the break decision

the determination Europe and think The to Europe resources. second the between And management piece North business the in allocation of of differences and those numbers the kind logical was differential historically speak and South. then division third I a putting Singapore decision is management on it is And of those for that it the criteria. out the speaks But - probably based taking itself. other really piece Europe category, into

Unidentified Analyst

rent and to has that in going much and of I in appears your expect a just largely the still slide both from get better we know tapered in kind presentation, ‘XX. Okay. off, abatement there's want it in I the Can America, Europe Europe trajectory that some for Americas forward? feel while

Scott Wells

Well, pursue, tapered they've and the largely that should to out time. they largely kind right that will think there off of and feel is obviously, are pursue Europe, out naturally there continue point in same over opportunities in want in tapering thing to The this you're we vigorously Americas. and diminish appropriate, do is where that off some occur we in something still I’d but continue Americas we’ll to we'll it's I that

Unidentified Analyst

And given environment, my strategic does refinance one, story the all, any at for rates? the need higher that to that trigger eventual that higher - priorities, Does necessarily to Okay. last the change given or change just at rate no?

Scott Wells

it's Well, a significant consideration.

But has to say even a at up. year importantly, the is assume level a probably been could Our occur, would've expense ago. gone it which more refinancing you maybe interest point at than higher

It of and That things in free to the now. are consideration a a said, cash being all parts business we right there lot the have generation. moving we look definitely is headwind a it's runway, at. in So, flow do

an has to a So, important necessarily certainly our I are that wouldn't led thinking in thinking, change is say and certainly but strategic it that about. consideration it we

Brian Coleman

where one to we're And a rates year have would where from Jonathan, they is, need couple years I I think right be who add only would going the Yes, are a on still engage. we ago, I'd thing mean, are forecast to that now?

operations is this as so, slow to smooth, of my scenario, borrow a And special friends. from sort fast as smooth

approaches very We will on action this, our carefully more the closely. be do window market as we'll and appropriate the watching

Unidentified Analyst

you. Thank Understood.

Operator

Our Avi from comes question next JPMorgan. from Steiner

Your is open. line

Avi Steiner

me. morning, guidance, full-year company's at Thank of I just them. and from A quick for a growth. some on year-over-year. puts takes want looks Good of at airports the the I And part abatements you. to everyone. least assume I ones understand margin issue, One, couple midpoint, Obviously, it ‘XX. slightly like, make sure is the the less of or being rent lower

else, I'm missing if curious then couple you. I'm got more. So, a anything Thank I've

Scott Wells

Yes.

the of that out, I is, renegotiation, that's as grows. the in we mix away, a have about we've gone falling talk little And US contract as we I abatements been a a bit think airports think pointed mentioned the headwind. a major through has other and thing you the

margins. So, EBITDA headwinds - three that things it's really are on it's those

So, Avi. about the I think way, thinking right you're

Avi Steiner

That's being Okay. guess one And programmatic softer. bit business, you see are a your part curious year? I it's but that know of peers the out then how of channel the and not about, playing talked terrific. this you seeing massive there guys what little a I

Scott Wells

that programmatic proxy, the on question, XXXX have actually no we anticipated you'll yes, growth in in for not year. So, our as our that. see of might did the we despite have But kind plans delivered

right growth showing it's that thing programmatic So, which market a tell is big is hard to to of mix. the part decent point QX said, actually is would compare the some solid. - being, right you, not but now a the not it you a It's QX certainly now. I the again, second pretty ever, it’s

part bad is it the So, counting there's massive place, that indication a on no I think to guess, don't how that be we that a characterize it's in we're I it. I'd gave, but guide of

Avi Steiner

you thank asset Great. notes the entity, Use the time. and ultimately And future curious be BV recognizing Switzerland just that business. of thinking sales in thank and you for as we reinvest CCI the it one sale, last targeting out again. and from proceeds if that about I'm me, for you should of can the

Scott Wells

Yes.

will business, those fund how operations how we've from to to is flow which BV investments. planning including the talked permitted otherwise been that would've the reinvest think in various the the I about interest, under CCI that free cash European used we’re indentures, up proceeds those montage

go kind cash now, the environment, completed. additional there with we’ll liquidity of current including think sale probably time yet. bolster isn't could CCI use they'll the it's throughout occurs of reinvestment Europe probably to used once things, notes. repurchases But of that change those But premature be with and over to available is Switzerland other and proceeds, I really that the and for given that debt right BV otherwise the

now, it’s deal the liquidity optimization actually right I closes. once think

Avi Steiner

very Thank you much.

Operator

comes Our Richard next from from question Choe JPMorgan.

open. Your line is

Richard Choe

Hi. flat? to kind for be that and and for up digital airports I then up ask to wanted guidance, the just guidance? of non-digital the Is be be in implied should the year to

Brian Coleman

don't we really but Richard, guidance, consolidated break provide out. we Well, it

airport. to airports performing run still room an Scott think is mentioned, there's I well. previously And some as

So, anything that if the color about know, I there's will we're I - going think Scott, positive on non-digital to that. business. we forward, don't digital, to say

Scott Wells

I see just penetration. and you becoming the the over digital mean, on our mean, business I Yes. increasing more rapidity dynamic. you've I mean, steady time. seen of

some Europe that in of digital how to are portfolio will airports standouts reporting folks on some the of illuminating penetrated particular being parts category. think the be Northern I in

growth non-digital by kind Much the digital mix base. should was our held get of but non-digital we've into out story, the we wash had yes, that how our part a we of by advertiser been of of performance category-driven the some as in of is the shift in XXXX pleased So, And has XXXX. up. sort

consolidated guidance on to the underlying consolidated of our color trying give some guidance is our think I So, you and some dynamics.

Richard Choe

to Europe And Southern think Got room there get opportunity versus in two year? we of just not is Europe, to Europe, it. rebound for I’m year. or terms Thank than guidance, last you. in Northern but the then in trying should the about how more

Scott Wells

I question. general, of more are. where recovered Yes. should an out think as this general, mean some them things have from Europe terms Southern about in has takes. it’s markets that and there think of in comments that would couple year. the slowly and a always Europe, in yes, rebound, called in opportunity But contract within those we COVID, you I and I answer dynamic but the yes, That's And be interesting a puts in think are to

Richard Choe

you. Thank Great.

Operator

[Operator Jim instructions]. now Barrington We Research. from turn Goss to

Your line is open.

Jim Goss

you. Thank

for Europe, similarities, evaluation and might does of of Regarding you any the to south the increase as have core is you geographic how north this and as it do US? market it because implications operating properties split or of decide the to

Scott Wells

accounting we is manage decision by Yes. business. really to this the Jim, segmentation have way the considerations and the driven

true. is that So,

reporting management south, I the of regions. Hopefully is differentiation other not of way, gives resources things. the manages the in one segment the that particularly the really how and the that and part in different and largely helps. different to segment think allocate But drives what into some who kind it businesses allocation the and those those - business, operating in manage reporting, or we the differentiation But difference, characteristics of Europe color business, sale Now, that we - not. resources the for and to the in north what you're by between can be tied targeting

Jim Goss

as airports in terms of digital. just yes. Europe you in Okay, And standout a air Northern mentioned

category? how You and have And contributed are by roughly as and drive XX% that accounted expansion opportunity US that does of revenues digital. for, both capital? I you’re consistent in your geography is Or, and Europe wonder, by allocating pretty

Scott Wells

by is by different ongoing we believe of business digital And geography, do So is opportunity. sort an situation. very by this that digitization contract, of

very are airports, in UK. get Airports become they're too. in has newer into We penetrated you digital digital, increasingly and digital as increasingly the

business, where is. of, places, in big America expansion. the kind So, digital the see to as constraint you're any contracts you refresh of the regulatory on that's going in those Obviously,

airports do and digital. regulatory we're the places They increase And different finding on than clients to like to, more part a things. to have afternoon, the the the messages some sort They usage UK of of the you Europe, morning having, in like time, it, know, over are of it. experience more able day those of message to of are we're the able immediacy And it. that the that like the ability do of flexibility But constraints in countries in there being as creativity digital. really the have

the it customers the we of So, are features things like. think that

to easy that by what to very give I way we an geography. direction you going definitely to for think and not to But in you're in it there's an can. geography, by So, question. different summary continue it we're as going But is is go answer different the kind of

Jim Goss

thanks. Okay,

Operator

next comes from Our Citi. from question Jason Bazinet

is line open. Your

Jason Bazinet

organic rate last both And ability embedded last year a your interested your year, in to how, had just organic growth and the in at in this both influence of for for this was I sort year take influence quick of organic sort if growth and and just growth I your question all, guidance is particular, inflation, on year. expectations what expectation.

Scott Wells

of the a XXXX, we we rate of where strong seeing we've and but Jason. a idiosyncratic just little XXXX, kind environment really but environment, thanks, softness, now. environment. characterized It's been bit of you in a a It's a were We half think COVID getting transition little simple to see the about more to we’re first the rate inflation, trading not as good makes word, it dangerous environment have I'd about that what drivers bit Obviously, easier not So, conversation. And good as certainly upfront regular “regular,” strong from half continue it’s right in widespread. as us into that a a there's one of is environment. of absolutely talked second approaching rate regular Again, saw is a that more frankly to the increases.

over inflation very just as of time creates up There's a very, looking as be that our market terms Y. X, the premium going has so increases probably see of it is and so, And of a been terms challenging rates it's more segmentation rate will in straightforward we as that, in therefore not because for assets best location, of locations, and a rate. very advertisers lot

we that we that on you spirit question. not to So, your of exact I And focused rate something. an guess that was tell what We yield to the important of very look be yield, that will if you expect I'm able focused are continue very we Hopefully gives in is drive generating - XXXX. sure yield. part rate. on being we're I'd to

Jason Bazinet

but mean, like but guess, had organic it you growth, pricing had industry, going seemed you're bit, sounds the Yes, going still it generate to pretty I good ‘XX. like I - to for a the I moderate like is power, felt able guys to be takeaway that's

Scott Wells

organic least are mean, of and think conversions I attractive. digital at the very as paybacks because I it's acquisitions And our growth too, not Yes.

not it's from I'd So, just make point the you. guess, - come is I rate, growth doesn't the to

Jason Bazinet

Understood.

Okay. Thank you.

Operator

remarks. now Scott CEO, closing I'll Q&A. hand back to for our concludes any Wells, This

Scott Wells

Have the today. We that strategic that call joining day. updating our you on. a are feel various We good the operating ahead about do touched look we the you and forward lies you on all much. great to develops and initiatives initiatives year very as Great. optimistic Thank year and appreciate

Operator

concluded. you your Today’s call lines. has Participants, now now may disconnect

Clear Channel Outdoor (CCO) 28 Feb 232022 Q4 Earnings call transcript