Earnings call transcript Q1 2023

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Eileen McLaughlin

Good morning, and thank you for joining our call.

On the call today are Scott Wells, our CEO, and Brian Coleman, our CFO. Scott and Brian will provide an overview of the 2023 first quarter operating performance of Clear Channel Outdoor Holdings, Inc. and Clear Channel International BV.

We recommend you download the earnings conference call investor presentation located in the financial section in our investor website and review the presentation during this call.

a questions. our and the we'll introduction for line an review results, of open After Cochrane, of the Justin in And CEO the will and Q&A participate Europe, portion of call. Clear Channel UK

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

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

the only of that no Also, speaks this longer call and of management’s accurate X, views provided as be at on note the today, replay. may information a May please to XXXX, time

the in now Scott. X slide presentation, call to over turn and I will earnings the Please turn to

Scott Wells

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

assets. for digital by combined with team, our our overall first solid execution from reflect consolidated quarter advertisers, demand strong Our particularly continued results healthy

Advertisers demonstrating from our tap while The and into the saw growing looking embrace rates, to technology. year, approximately fourth the stemming compared We with trends quarter new line delivered to into X.X% consolidated largely revenue the guidance are industry's period. excluding in digital benefits out-of-home prior foreign recognizing $XXX of audiences, industry our continued of up resilience. the we year the in in million, with our movements exchange as

with footprint, of buy faster engage our of our call our more data even our to in to strategy platform We these contributions and a scale under strengthened make to easier of leveraging we as and for solutions team and diverse as out to progress greater as combined to like we continue ability the efforts, technology I'd our more launch. their pool focus drive believe and our the business pressure parts with of business to breadth come have advertisers. driven,

markets weakness and During include in emerging These specific categories and events. US some Chicago revenue Francisco to the select select crypto layoffs, the accounts than due we quarter, San a impacting broad rather within saw like certain like national doing issues macro few and tech, accounts.

Regardless, pharma grow in well we us are of are dissatisfied categories our in with good we as to room the presence progress the the category services, belief year Part is gives have that the arena, that US America as in believe strong in notably improve can in CPG this well. the as and segment. develops. all the we've made results as and remain building amusements we Business what the where QSR

our and to movements excluding Further, last demand revenue for foreign of North's for of revenue XX% in rates. first in compared experience the XX% exchange Europe we year, assets grew digital platform. programmatic Europe healthy continue to North, Digital quarter our accounted and

how right customers. from platform benefiting the believe a our digital serve operate So integrate we of and kinds we we we are business into stable attractive as and more technologies

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

inherent business. and our the our As us maximize we also are operating value enable our in we execute believe enhance balance continuing to evaluate paths strategy, will we that sheet to

transaction to use the million recently in we to proceeds liquidity from gross our $XX the plan generating We Switzerland, improve and this position. completed business in our net divestiture of proceeds

to low we Additionally, our continue businesses. margin and European priority our low review

in as seeing of signs outlook, we our pullback broad macro-related and not I to advertising are industry, demand our Turning mentioned, remains healthy.

at as develops. year rates the country expected are the However, to level, vary growth

segment, well year-over-year In and revenue we trends the fourth we're our positive, the quarters by dialogues better second Thus third rest we advertisers quarter encouraged with the perform seeing and anticipate which in first for are will as than and better the well. far, year. terms remain America looking is the of quarter bodes of the growth,

revenue should the and well perform airports the We and also QX beyond. for year rest from rebound of believe strongly

conducted are influence In addition these We're we And a to business engaged they a brands efficient coveted fliers confirms providing rebound our the in recent frequent and to recover. platforms. as with with audiences very leisure highly travel. travel study channel to that effective continues travel, advertising

also Europe, as business of to concerns. rebound markets, transit post across as slowdown Europe our growth continued and, COVID demand expected In we're North, well comps of reflecting markets, tougher a QX, healthy to no is in continuing which in the therefore, see in a in with majority due our a macro to strong performance in QX. certain have a revenue slower indication strength turned rate

unrest sale delivered South, performance as top the comps of trends line Switzerland, revenue also normalizing Europe tougher have a France. in in part due expected to in in large solid to business as And QX, the which is the well

year the what we're despite by to US, at encouraged seeing start particularly together, we're the in overall, macro the given slow this uncertainties. the Taken point,

the of and the guidance in February, exception we full capital Our Switzerland of sale reducing expenditures. within remains for provided range the adjusting year with

business. optimistic markets As our we across close eye about and plan, execute a remain keeping we're our our trends on

quarter me Brian let Brian. second it turn the will that, now with both And over the full provide to year. guidance and our for

Brian Coleman

Good joining you, our Scott. X. everyone. call. thank for morning, you turn slide And to Please Thank

and of results mentioned, Scott regarding balance we are line As guidance outlook remain year. in our optimistic the with our first our the for quarter

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

forward. business included Additionally, our be on March results, the our but our included sale quarter of will results XX, was in Switzerland operating and concluded XXXX, not is in going first

segments, as is South, into Lastly, reported with results. Singapore America Europe and mentioned quarter and been has segments we call, four the Latin Europe in fourth our North along earnings included with our now have expanded during we America separated reportable Europe now Other, Airports. America. and We

first is the provide the we segment new This quarter the with results will quarterly reporting.

investor under the our Center. Interactive called to feature new a added Analyst Financials the have website tab, We

can based quarterly our our reported as on site, this for You fiscal find filings new the in XXXX results reporting on segments as results and with years XXXX the XXXX through well SEC.

$XXX reported for on quarter results. X.X% the was revenue Consolidated a million, to increase. Now, quarter the first

of in high foreign exchange rates, to consolidated was end guidance movements $XXX at $XXX million. consolidated Excluding revenue revenue the our to million up of $XXX X.X% million,

Adjusted the loss EBITDA was net prior year's million. an million, Net $XX of over improvement down was XX.X%. $XX $XX million, loss

new decline site negative lease as expense rates. large was million, lease factors, as was $XX rates, contracts, the adjusted renegotiation and in first and existing the fixed a contract exchange revenue of million excluding well million negative movements AFFO in mix. quarter $XX foreign impact foreign to EBITDA The Excluding movements due various exchange XX.X%. down lower including site $XX the reflects of in abatements, in increases

a X pullback the On first to results. slide $XXX are telco media quarter X.X%, in addition and was America and banking. down America revenue reflecting segment million,

However, the mentioned, as category-specific overall investments these technology. reductions impact as continue offset our America Scott during customer our efforts in the partially of the broaden we to on we overall And base quarter. performance our leverage aforementioned

up America X.X% accounted for $XX revenue, to of Digital XX.X% million. which was revenue,

more this tough X.X%. declines continued XX.X% were in printed revenue, by Local due accounted accounted for sales to comps. to America than increase deliver formats. was sales, which America revenue, and XX.X% National up of growth X.X%, primarily However, of for down offset

XX.X% by expenses and is contracts due expense and million. were lease and The renovations. $XXX lower Direct operating a to to new in SG&A site amended to driven up million, XX.X% increase primarily increase $XX

expense driven in specific a our by is for of reserves customers, an was and not certain credit indication view loss broader Higher weakness.

In addition, higher by compensation costs headcount. increased were driven

previous million, XX%, segment the earnings renegotiation called on was would down we margin levels. down adjusted from existing with out $XX contract adjusted XX.X%, Adjusting our EBITDA XXXX. margins be to pre-COVID call, EBITDA site large lease of of Segment for QX close a

by X.X%. and review down the revenue, Digital Please Airports. specific down to X.X%. quarter X.X% down $XX revenue for a was XX.X% spending. revenue, campaign was revenue, to the timing sales, revenue sales driven Local decline in The Airport of slide of accounted of Airport for million. XX% results primarily were million, was for up which of turn for Airports first for of XX.X% accounted which Airports revenue $XX National accounted XX.X%. were X

SG&A X.X% due site terms. normalization million, and a a increase to payment in due expenses expense in $XX operating million. to was were X.X% primarily to The up increase Direct of $XX to lease part airport

segment adjusted margin Segment of down adjusted XX.X%, $X EBITDA with million, XX.X%. was EBITDA

slide that foreign and to My North. movements to on in performance have X South results commentary adjusted for of turn is been please rates. North review Europe on in a Next, Europe Europe exclude our exchange

in all Europe million. $XXX increased new in XX.X% countries, Revenue United Digital revenue the notably most and Belgium, was for the revenue accounted and increase up $XX.X the to XX.X% by across contracts. North most increased was North million, UK. Europe total driven growth countries, and products largest with to in up driven Kingdom, all XX.X% demand in by Sweden, of

operating million, expense up and and was lease new were XX.X% to XX% up Site to by driven contracts. $XXX direct North $XX Europe expenses revenue million. mainly higher SG&A

expenses increased part mix and addition, prices the increased sales quarter a operating activity. to due of In other higher in in

year. EBITDA XX.X% EBITDA million and with adjusted segment prior margin line X.X%, segment North was Europe in the the was adjusted to up $X

increased $XXX slide on South. revenue Now to million. to in XX% South for Europe Europe segment our X performance

driven has from across notably the our in the products, in all of adverse countries As we most COVID-XX, we of effects increased this continued all furniture demand recover of segment increases and street seen to have in revenue, operate. by which

was operating addition up Digital to mainly were by driven Europe expense countries, costs. XX.X% South $XXX to contracts and million, XX.X% was in to total up Spain. million. South accounted $XX higher revenue in direct lease other growth driven expenses by million, and Europe XX.X% largest the with Site to for new increases XX.X% revenue SG&A all up and $XX operating in of

million, South was improvement adjusted the Europe year's negative negative a $XX over segment million. an $XX EBITDA prior

Channel subsidiary of owned an wholly of segments, our segments and B.V. operations the our to Other. Europe CCI North as slide includes issuer fourth indirect, to changes on is B.V., our South to XXXX. as X.XXX% the the Singapore, International and notes referred of well Clear Moving CCI senior included which XX. secured company in to on B.V., XXXX, the quarter It of following Europe as reporting is the in

increased CCI $XXX to from million. B.V. revenue $XXX million XX.X%

increased lesser extent, a Excluding CCI movements for in increased demand new contracts. X% XX, revenue less CCI FX, by months than B.V. to March revenue of XX.X%, ended B.V. the represented and, three XXXX. driven Singapore

loss compared $XX our B.V. on XXXX, $XX sale driven operating CCI to Switzerland. business a primarily period million operating by of same in the of million million with the income in was change $XX gain the of

prior and furniture investments. a in Spain, the in the declined in CapEx year. quarter, and North first spending totaled Europe million digital South largely to related spend due an expenditures. to decreased and assets. largely street capital Airports increase in France slide related of $XX to Europe XX America, CapEx investment increased We to of million moving $X Now over review

slide Now XX. to on

lower use, cash quarter, Switzerland, cash The cash due in contribution first and partially by capital and improvement the EBITDA proceeds increased received the capital million. the adjusted sale higher offset During $XX to interest was and from equivalents cash part investments. of working

up base. the million Our seasonality increase XX, of fourth million quarter the in $XX of liquidity the was due borrowing offset cash $XXX to at the partially compared March end as XXXX, by in liquidity our to

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

the to cost compared average was cost XX, a floating the debt rates. of December weighted to Our average of of due increase weighted debt as slight in X.X%, XXXX increase

As lien ratio a XXXX. of is March X.XX times, compared was credit to increase times. agreement XX, leverage slight XXXX, our X.X December as covenant first threshold The XX,

$XXX full the of and believe and $XXX be exchange XXXX. in between in excluding year guidance in movements XX quarter time, QX second our slide XXXX, the revenue Moving to million on for our foreign At and consolidated million this we will rates. point

year We full of Switzerland. have adjust updated sale to our for the guidance

guidance Excluding a exception lower we our February, the projection that of provided change, spend. range CapEx remains for within in the with

with expect $XXX We to $X.XXX and billion between foreign movements million, exchange both adjusted revenue excluding and be EBITDA billion, $XXX between rates. million in $X.X

$XX to expense. foreign year exchange from due movements in to down increased million primarily guidance fiscal excluding interest AFFO XXXX million $XXX to rates,

expenditures Capital the to US. footprint continued investing the million $XXX the are $XXX expected on in and in with of be digital range in focus our million,

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

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

Scott Wells

Brian. Thanks,

we remain the Looking positive guidance, Brian for year we with track well expect and to noted. as our continue annual regards on a business, ahead, to

time, the remain to sheet, side, and execution, the On experience. operating improving the the continuously cash same balance committed At business we our steps customer our our ultimately generation transformation digital focused support to and taking we improving reduce in enhancing investing including debt. of remain our on

Outdoor I a site to Clear strong website highlight sales new Channel to Q&A, teams. our funnel slide for going This want XX. Before is lead our to designed be on

the visitors enhanced looking valuable it As from user to makes for the CCOA. easy well, they're information experience find for

site. branding, new of they users working power by with our get how us medium, the companies. to site experience media log on versus our shows the more highlights other tells you visually and The encourage can I and

over me for And will call the the turn to join call. session. operator the Cochrane now, on let us And Q&A the Justin

Operator

[Operator Instructions].

from Choe comes Richard today from question Morgan. First J.P.

Richard Choe

you guidance segments just little that revenue bit talk bit. wanted for a gave to little I about the a the

you Americas Just you wanted and up business a year. if to manner could. Airport, the expect little bit those the for more color be on categories [indiscernible] the in full Do

Brian Coleman

going at I the and of at going if provide QX stab look top. a come don't take forward. segments And in the in America the likely and both Americas, that experienced Airports to the you over I are segment do can it, the were would business Americans so think both of performance I some businesses headwinds airports, I the of growth you and each dissipate think business. guidance those in Yeah, forward. Scott, you expect can can We But for the

timing airports, with that about the the Airports campaigns. of talk over that year we able some will And headwinds the to impacting the rest other we're of campaigns that hope is back fill pipeline the those We of come things.

improvement I in expect Airport the So we segment. do think

line dissipate. in segment. I It's top improvement. that same And the expect the would America headwinds quarter say some expect got the we to for we first do And

some America think as on. quarterly both continue of will quarter we've got segments seasonal. strongest Americas, very then first and But this The improve to impacts. Airports, in rolls It's not the is the year business. quarter the And for I

Scott Wells

add, I reiterating are think the Richard thing is our I'd guidance. we

the of And had do the business individual a be across able able into from. so, you if in board. And coming particular, where be to put about, to wasn't the of US we're forth, in numbers that that the growth that pretty certainly gives trying Without order getting get performing. hopefully, segment, every guide we're to going much you we growth talking the to sense EBITDA wouldn't to be that,

Richard Choe

those and to on how at us seeing and with of being better do more interest comment I know And guess, are South a you the but is of, as in better or tempered, least, think segments, country normalizing businesses? potential numbers don't to much North there kind sell you by more more and more the group? either you this, doing I can Europe a

Scott Wells

a we a markets. it starting Omicron announced Richard, Europe in announced European I were after whole, it's was frankly number as COVID. and were of we this think COVID when still hard process, came very And a great as the about you on think we that we question.

we And one dozen part to that will our you we've half when since QX pivoted and a the level, of think good it's we that that but generative not when quite country, the where were a have so, half think that's market forth. started country what if quarter, happened has last now it a be to plan. comes country in XXXX, business And when we is us cash overall, belt, middle about the higher of to that will dozen basically the subsequent us pocket doing but performed going our of that we we and and so under and soon. inconsistent been quarters and had has I to well actually for help to articulated time be margin year And yet, Europe do quite

of you I that earlier and on. the think price process And there's But processes, minutia you lot lot completion a awful an of are level, slow. of back an in dealing to forth when may all have it. as a into witnessed, country awful it to do a have you're get get these And we've recognize you helps. agreed actually when lot at than a you well

real that right are not So the the actually bidding. advanced negotiation on point being, market This in time now. this is is things

you telling you get that bit more So, of in hopefully, me would me a that without trouble. little anything gives granular color

Operator

Avi from comes Steiner question next Our Morgan. J.P. from

Avi Steiner

into into just bit little more can One, dig here. a couple America. A we

year you as guys You called little you remain more, than into macro? confident put weakness national rather Can broader particularly the for account there. bit a that context

Scott Wells

in year heard But maybe started were particularly going years, rough And January and particularly couple in on. QX tech. our February account not there's pretty we what has getting seen We have us. call, I space, better. of progression think been each national the and month in but rough. said crypto this emerging steady the things a pretty everybody a

talk the how we upfront since QX up. with we a upfront dialogue does ramped And lot that fair that had bit of driving we advance. that's started what's the a You how the having. in have, best about Outdoor heard along call us it. have the the had we're planned about in And that recording confidence get is

to idea good planning pretty a get the in of got we've so, the part what year. brands are And second after

different you book points on that's and together now, what's take we're all those us you how of gives And say data about confidence take what developing. what so, saying things are our right to the

So of into data points lot there's a it.

what we In happened, of lot very in was have Francisco But exposure to in tough Francisco. actually of And San think terms San we tried the in terms to this script. I out ad a of lay granularly QX. market very a

any to I the that, it, you resonate. talk market. think of it's second our players And other with if that biggest associated would

So And emerging vibrant local thing deal relative very the In in that year a has was a QX particularly level. Francisco and both of real big at the overlap that impact national, year. tech, a prior, where the been the San prior the with that's on again, us. national had to the category

as look murky dialogue what encouraged, and But a the business. we is to are aware macro continued forward, happened headed. contribute unclear had the Like continue headlines, we with we the think a it advertisers factors institutions as financial to have little else, bumps everybody little services, of in I economy we've bit of various we're the time be have So, to the being points. and and with good a whatnot over booking I'm data those number we QX. do have being in that And where

good develop. the going we about feel is year So to how

Avi Steiner

usage a bit It that? little looks here to little within the related. and flow more like implied related cash than there Is CapEx free EBITDA that bit better something all the maybe Switzerland? else a production Is

Brian Coleman

changes… I question. was sure cash I the of flow and followed it Avi, know the ended with I'm it not kind

Avi Steiner

sure math of CapEx EBITDA, right, it $XX if I of million about midpoint $XX million maybe just I'm… kind my want is of thinking to wrong. make reduction, I'm

Brian Coleman

not we talking guidance? about tracking. Are adjusted Still

Scott Wells

he's that's think I free what saying, cash flow… your

Avi Steiner

guidance. Full-year

Brian Coleman

Oh, yes.

in think I the to Well, reduced respect reflect CapEx. does spend Okay. also Switzerland. reflects number, it With anticipated CapEx it

Avi Steiner

right ones already here. And Two in in very America, quarter, the it. said that expense lease Site year? at I quick least run rate is you the first apologize for the if

Brian Coleman

for in to pretty our similar items, had that XXXX. And be I think I adjusted one-time what would EBITDA decent a margins, margins, think rate. are we run

Scott Wells

of you the lot you as a flow business. so is seasonality for leverage. more margins there get year, the it's quarter to through, softest that every going lowest QX dollars recognizing us have because the in Again, that operating is

Avi Steiner

Very last one for me.

changes you the cash door Any on answers how now in You to your from about have prior liquidity? Switzerland. think

Brian Coleman

help process it on debt as improve changes. No cash to sheet the pursuant documents, reinvest And liquidity. to we'll We'll that continues. hold business and balance the you in need to that our know,

changes. no So

Operator

question from next Our comes Steven Wells Cahall Fargo. from

Daniel Osley

line Dan for on – to changed how leverage in top digital is Steve. impact should all? Maybe been mix your at actually in growing But the And for how This for just thinking outlook shift? or the the be has Scott America. Osley business Brian. we about the of has operating margin conversion one for added The

Scott Wells

that We both one. answer can probably

Brian Coleman

margin accretive. – we expect to be digital it think do I is

train invest was. to of part my lost kind thought continue I of second in We what of the it. the question on

Scott Wells

should we have all of there's you variable over time, you you the think, quarter. of answer question little think that be our versus guess, you I of sign time, QX a lightest lot – margin think ground different where nature we I a QX under versus that. a the tailwind goes on because our look question to not in Avi the lease, come to those should to into is as be we're the tailwind all transformational, were over in would where the versus part digital quarter impacted have with fixed I over answering do do the tailwind, heaviest probably going things the a we're things, when in time, is margins. play. But it that do a be how But of into do and lease a you a those it but But at

Operator

next from McVeigh Morgan question Our from Stanley. comes Cameron

Cameron McVeigh

you how growth? visibility and Did market large the so mix, into Maybe that's discuss geographic market, versus quarter? the the driving far small second

Scott Wells

take interested that the that a you're answer? a US. statement? give should Is you trying that principally from to in true I Or global be going I'm to

Cameron McVeigh

in Interested but US. I'll both, the take

Scott Wells

oriented. top We capital And look XX are get of company. we from It's more predominantly are XX% to concentration lot like some not when would you top cities. in are cities, most you France. you to where revenue only. little get DMAs market like a the a more be Certainly, you our our biggest the XX probably of presence We have in countries US. France US have a countries the going but city in be as in bigger the the internationally, would

two, Los principally and York, in very Times in When to where I'm useful there and Angeles it US, about presence which think most are US way of on airports. top in on talk out-of-home But Los that's are is. strong we have Angeles. the very, market going because in pretty a New and about the I to York, think the the you presence have the the focus we New Square a kind strong And

national by don't we New lot ones advertisers. markets those a in So level York. that two most street But impacted are of have are the

the are everywhere. come is XXX have and into. they're trying it's idiosyncratic And the one lot you which don't what more varies. is whether different the to be is where on targeted bit DMAs XX be going that depending going of go is they're this an what a of little do, DMAs they're – next of is advertiser out-of-home, truly things about they that it around out-of-home XX their more campaign to And nationally, campaign, buy as to The a and product television buying people running to trying markets quite versus in. With that the top to

on soft bit local than, maybe potentially. were national we're is and a harder where So, on more OUTFRONT that and impacted sales. footprint which more in in as York, OUTFRONT New impacted of Lamar, little small have And or as than a more was QX, by don't kind similarly, markets good focused say, even we because low

kind of plays how So that's it out.

But this you local be is those also to need that you national and regional to developing accounts. need be a But business accounts. developing

of can't kind one rely to part You the mix of drive the on just business.

some that gives you hopefully, color. So,

Cameron McVeigh

follow-up. other One

So you another out-of-home mentioned you in and over choose developing little approach value advertisers Channel Clear CPG categories, one why pharma the more these into a could of curious and if offering that go would the operator.

Scott Wells

be out-of-home, to that assets as to about first out-of-home want do think one advertise. selecting wants choose I When media about a to more would they you advertising versus the with have of within by, is driver think – place over thing in media going you somebody driven person a why think to owner other the opposed another out-of-home is

in need you Clear So, want New Channel. advertise to you're if going airports, to work to the with like, York

to the most advertise stark with that's New to If you going in And want the the OUTFRONT. how That's have you're York works. to work business differentiator. subway,

is in the and working we working. data those are we're those confident though, building that the insights we at order marketing what about bringing categories, that is talk getting their When to categories on need be

looking looking looking channels, they digital edge out-of-home be insight the terms has and going provide CPG, the being campaigns. in over script last the of that cutting And With in case it that spend ran would that from at successful where so decade. is that be at same that places and might to sales retail to so, comparing able the of is This marketing sales, generation. made in pharmaceuticals, particular at might IRI be confidence in

we're So what that's at. getting

channels. the less of trying from it's that we the we're really in TV would the end, not that to of the it's to helpful all channels the other that money if a out players, I other players, part It's lot of we because mean, out-of-home more time out-of-home about necessarily knocking out-of-home, trying digital in of out not But be on spend spending. take pull care we're and it. spent a ad that brains big amount the that

Operator

Our next from Aaron Bank. with Deutsche comes question Watts

Aaron Watts

US on couple given greater Scott, the themes occupancy the backdrop? your you'd across pricing pricing any than any of footprint, over have and/or call out you experienced years macro pushback might on last

Scott Wells

We across dynamic they all very but that's market, continue there's And not a media I agencies hands demand frequently premium most supply. talked there's little be just the kind we from recent about bit that locations, them calls, us, can't the this iconic that's to key cities. earnings more in lay the a of interesting. just for sense on than that on in in locations It's complaint this their owners. hear premium

It's it's a that pricing dynamic so, strong strong. a dynamic occupancy very And dynamic. strong is very very and

I be where to get not but you less campaign dialogue We're is seeing I'm would a ready to sure next The not about, case you had a it's going what's happening And your part those. rough, brand that look why launch a March, year, so I'm really the be waiting which major think as was we're signage, go kind signal. going got particularly the to in year, and lot for highway, is, and we be marketplace. people about April, launch out and of the the I January and are people of the people demand January that this lot state-of-the-art are things we if profile, February into better. arterial into feel the down as lot It's of conversation toward in better to that's per we're and a placing feeling of next rest sure month with February. pushback, nice seeing not was healthy se. of As and month the of I'm That's my it like investing. more I place were pricing of want because And the in the

by price you up gives are you on But color. by are in So up. a And than our where product. the it it market. yields vary vary does occupancy. some that Hopefully more geographically They're on does

Aaron Watts

one, And one could. just other I if

levers first the expenses biggest your of expect quarter the you would Or kind elevated side on within those driver margin of more expense around there well? guide, the to are that circle the and that on earlier move more that as bridging see your on growth back comments revenue that implied that big Just bit of some in other is to of maybe layering expense the margin, year full on base?

Brian Coleman

does comparison. I think think And it it through I in some reflect the improvement of year. line growth as the also roll forward the remainder you expense reflects, top quarters, for

was off, will headwind of a As be the started QX. abatements to trail headwind. less that in It a

probably are when biggest quarters XXXX those comps, XXXX as we the think about of I roll talk versus drivers some we So through quarters.

Aaron Watts

you've me, Brian, coming out was a just one-off? lease any larger that remind to there up or renewals of a that the called one were similar other bit really

Brian Coleman

renegotiation. come lots of in one-off business that's do, renegotiated. I of would a as for portfolio, rest up as the materially say up magnitude. of come terms a impacting Obviously, leases are and them But really they that not I

were be have still And COVID we will relief. terms that to comparative abatement. said, wasn't COVID. and being some that It on by things item the COVID all have But as based that impacted lease of continue the get periods, reflect expense we'll certain an out that an to of were face. we leases perhaps these Now, have that

the directly, last identified answer that that But magnitude rises renegotiation none the we've to one of of quarter. lease your question to

Operator

from Our next with Barrington question Jim Research. comes Goss

James Goss

they think the underlying are the growth? I were was wondering, in first, or recovery Europe, COVID more gains more ex-FX, from you do era

Brian Coleman

story. it's I'll Scott or a pronged back I hit wants two up. maybe and Justin circle think to it

it Europe, Southern story But reached pre-COVID not approaching I some better. they XXXX think back markets that South, some contracts. had the largely in of in a or in and that winning are think Europe climbing is levels. and But business COVID I at

So want I think aside lot had particularly terms a it in some contracts. of set that a Spain I COVID the don't victories of we recovery those story, but in countries, in new of to is

think mix it's I So, both. a of

think recovered I our from The some hand, on Europe, of be largely the COVID. other agreements. exception transit have Northern would

a there, the growth. have northern we In that and think, see places have Denmark, wins like just QX. the So But recovery, has particularly continued European of network growth helped these heavy. That in drive digital I Belgium contract markets. of UK, it's kind there. been Scandinavian use the you in In the

you Scott I don't something wanted add? know had or to Justin, you if more

Scott Wells

me. for Nothing

you to add? for anything Justin,

Justin Cochrane

good very a that's think Brian. summary, I

back is that's spot is COVID I it on. and recovery it markets. There in bit think coming transit. is, South exactly a But in other Brian what the of in underlying growth got I think

James Goss

had sort those I'm of down information six process aggressive markets you four little of which it are to results causing if an shifted that bit? Sort chosen which up last about good or Europe of each want want quarters' about the I does Or maybe a wind and interested might buyers gain in you keep the you've you sell to markets some wondering the in unrelated maybe of in was slow either to seeking you And markets. basis, of to on the you just price versus getting around expectations? discussion more

Scott Wells

see I and thing we've the the goal to three is, I long our business. mean term, as make two, doesn't consistent value think, and transition, that a about is that that we we But US think our number real one, Jim, clear shareholders. it ourselves that been – focused delivering as in real

get the and we you're more buying, confidence right, absolutely more give the so, And it as in perform, us as give counterparties businesses data selling. confidence more it'll in will

assets a to we're work And about not achieving really that. good about there, teams we But we way good feel the our surprise the they're so, have, that them. And we'll running the through feel we us. results

there's that path through environment we where The work how process issue through lot you in that of the complexity. manage just an is do a your one of

vision of are so, that business. to in it, remain doing to transactions focused unattractive. But And not US being that be working we're a we're going foolish we committed

James Goss

And fair one final bottoms bottoms that some one, a is potential of little encouraging macro observers, your up approach more than the the take? your appears a from assessment of recession up

Scott Wells

get of other really macro the in observers. heads I can't

as we've our data apocalypse view would the told, what information and to And drive that that's our I forthright And comment in particular. relative can. on on run can't Jim, characterize our driven. Obviously, was and I bring want as end, business shareholders what the I see, be revenue revenue based viewpoint that the our we that's We're people as in care what much business about, think that think we much In March striving macro I with nigh. our we and we been of characterize EBITDA as can other have. continued XXXX since But to as the and we've not our And us forecasting, share to forecasters. really we're on looking macro to see, what do in which to we I mindset today. that bring is can. we EBITDA about

Operator

Lance Vitanza Cowen. comes Our question next TD from with

Lance Vitanza

quick one side, about I'd like then cost you But on to environment. provide on EBITDA. costs on A the or guidance costs domestic talk quarterly and don't just to the M&A confirm,

internal So, and relative EBITDA in fall how did the quarter first expectations? costs to your

Brian Coleman

Well, versus reflection Southern first, That's wins COVID exceeded I some the think in good. outperformance. recovery the there contract was I Europe if I expectations. of new take quarter, the some that think Europe And

recovery. we Now expecting were COVID

of it's the maybe recovery. the So pace

remember, QX But to business. really also talking when relative the about got small is you're to Europe, you

that it put so, log numbers got in or have numbers the large context. with to small And a you've you right

That We performing North. really just talked business about is strongly. Europe

surprising, transit underground United again, lot But of We contracts digital a Scandinavia. where particularly And don't of is have that in really, and see new And the was but it good our the transit. Kingdom. exposure back. is. the it's so, not business growth in that's use to it's the networks, of But a our recovery in coming lot

Europe exceeded expectations both think South. North I Europe So and in

some want were I in Scott tough known can't the that weigh may top completely in We've cost unexpected. on but disappointed the We abatement there, to headwind. off, we it think charges I comps. on environment the line, Americas. side, larger we rolling was say recur. we was not unique the expect credit think we that don't that situations is three of a are That reflective or the to some have do have two

some for that post adjusting We have the are COVID contracts environment.

headwinds think I we're Americas but and say disappointed. not that the Airports, So would in I unexpected,

say. to if So it know at more leave you have I'll Scott, I that. don't

Scott Wells

We was operating it not I tried finger really think about a it very is aspect on talk with the the Airports we we're we America it. we and explicit about that thing. going year And our as in expectation had, be line put dissatisfied leverage, in believe the builds. improvement see that the when are did talked and script QX, we because that to time bottom to we to we what this that – driver, it all that worked the revenue big of

the aiming your revenue the And of where And to going for, so, tried when most doesn't you're discussion deliver that be big those explicit attractive we a again, to market driver. be that's very differences in were.

Scott Wells

you million numbers, so it how M&A, sort looks you could even, On to smallish quarter. make the acquisitions, first another some see presumably assets? you're the I you talk rough like type what local maybe in of about strategy versus with the me airport And US the about the just versus if respect versus in $X US. domestic billboard, like just to of type tweak continuing talk Could or spent just national or the of big you in remind sort as then continue of kind and much rural where portfolio. assets or on you spent XXXX for what looking to anything of you're city,

Scott Wells

spend we're of up for not lot of the here most it it's there. well, lot have and and easements part, goes if – – ground to up the these to a give let not about sign. the some it we're doing. I'm But our We're footprint US entirely picking generally I'm where we're are to few things these we in philosophy, roadside of question of US minute entirely we companies pick that Brian going that roadside. the acquisitions that signs to that quantity entirely accretive you in take And or up. pull looking him buying It's is a terms – it's US underneath for to acquisitions, are whatnot. are really overall. roadside. a staff accretive When doing But a our P&L going terms and just are you talk

you quantity the want take to Brian, question?

Brian Coleman

the for year. full quarter to capital on Well, and $XXX about $XX going expenditures, guidance acquisitions the $XXX Sure. million and to we're report XXXX. million the CapEx We've range of given for million

just digital. pure largely – quarter, in some sorry, we and we've spent digital. in acquisitions, had Europe terms Americas, America. then largely CapEx Europe, US In the and in $X There the Europe so and was the Northern in a and acquisition largely Southern of in mostly acquisitions Northern reduction million of in both In about

the gave. side, That we the on that's in I think CapEx acquisition small. that will remain not included guidance

to I some we're likely got pipeline think we've the close. in

I be changes, preserve continue current I we'll more to particularly And the have it, business think can this accretive aggressive. to if think pursue in then and but smallish the unless we environment we be category, it'll it environment, liquidity. in will become largely tuck-in

Operator

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

Scott Wells

look headed. where at right. will And look is the a process we feel good to the bottom forward we and our the growth everyone. of good good as in in forward, some all ability feel for our questions. course great updates over on a we about we engagement, everyone's year, All hoping be position the year. we much. Thank you Have very that drive but the our thank European bring appreciate And business. you line about and in out quarters, provide about that as and look Look, coming to to We business we're revenue feel is our we day, we the

Clear Channel Outdoor (CCO) 14 May 232023 Q1 Earnings call transcript