Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings 2023 Second Quarter Earnings Conference Call. My name is Bruno and I'll be operating your call today. [Operator Instructions]

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

Eileen McLaughlin

thank and joining call. our Good you morning for

performance presentation Scott CEO, will in and in Inc. the and On quarter an the you Coleman, and located our the are today operating second BV. call. XXXX investor They our this review call Clear Brian Channel Outdoor We presentation Wells, our section earnings of website conference the the Clear during investor International financial of Channel overview recommend Holdings, provide download CFO. call

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

Scott Wells

was rates, foreign to Good excluding exchange and We for during excluding up X.X% Switzerland movements our guidance second compared in which consolidated in in to and call. foreign and quarter, Italy. line the rates sales thank taking in the $XXX delivered today's as everyone year, of of prior you exchange and time join movements the businesses revenue the the million with our the former morning,

our several our made call, we since facets addition, last of on strategic progress notable In plan. quarterly

our continue businesses. our accounted ongoing led global year, results be XX.X% strategic Our more and X.X% team second exchange the assets, reviews compared our by running environment. I'd to efforts which quarter thank to to consolidated excluding despite for operating foreign like our digital and for business movements increased and sold prior a rate the in of revenue their difficult

ingredient Your focus remains a critical success. our for

America was to our reporting segment with most Francisco. the higher partially offset San prior revenue compared by up continued In in in weakness revenue year markets,

the in categories advertisers continue during with make and large We data inroads new to particularly to due our part investments in pharma quarter, analytics.

the airports to in robustly segment, in rebounded move, segment dynamic and tapped In UK. of we strength as advertisers addition, our our reporting several the on including in target our millions and continued markets north consumers Europe Belgium saw into platform

clients powerhouse At right the we tapping our of heart visual a strategy, needs, to the kinds customer's campaigns. committed our data our securely into capabilities media optimize by of help becoming and to measure digital remain strengthening our and their understanding plan,

and ecosystem elevating can advertisers this is to continue our within we increasing of the believe pursue. range role We the advertising

not these the clean out-of-home recently and for first DCR in room separate that partnerships programs class integrating budgets many we are entered of marketers fund The first leverage data and buyers to budgets out-of-home enable first that party users from and data with of typically applications DCRs for matching our U.S. aimed data-driven radar in industry, a In out-of-home. party brands the DCRs at platform are traditional or data our several services to best into utilize

doors believe ads privacy integrations them and to analyze by first audience behaviors, understand digital conscious in creative and manner. with leverage allowing relevant open our all run brands more for impact and us will a most to We secure the these scale and

Since call, close with upon expect customary and to satisfaction portfolio. important regulatory on the we in approval plan XXXX of sale regard on closing and other closed optimize to conditions. our our last several May our also XXst took We Italy the on Spain sale we steps of of to

entered on were customary We conditions. I'd efforts. to environment our agreements the with XX and advisors employee our in discussions XX and the during subject for increased Clear are information markets execution Titan difficult financing. of work to France a executing aiming forward exclusive consultation team satisfaction France's sell able including and transactions into an process a our sales with diligence and these counsel, business share of purchase of to transaction to the also like QX hard Channel We their thank complete and business in in proposed closing credit and move works to for cost agreement

of of ability Spain, our in approximately generate will $XXX degree will Italy, business historically the elevate as million portfolio, risk in to our France greater volatility improve have completed. These demonstrated drive and transactions sales cash together we enable Switzerland, our if of believe as expect when will which a exit profile total flow. in to our us We our the positive and gross with well in businesses anticipated that markets proceeds sale

financial Segment we of believe and $XXX degree laid million needs. our with our in out CapEx, remaining is delivered our vision the Day on $XXX its volatility as Europe $XX have higher North September. consistent trailing penetration a metrics we importantly, basis, last comprise digital currently Consider Investor in million. that own which the XX, better our a markets our to XXXX, businesses, cash invested less million European overall Europe in in European position segment South of have Europe and segment. Europe North meet June delivered And higher EBITDA month XX businesses margins segment, encompassing of adjusted The have a and revenue than North of stronger

to continuing Board delivering Our as strategic growth, of leverage on strategic model. other Europe, of of as and remaining our alternatives for opportunities range We businesses in the enhance to evaluating remain our balance conduct review operating focused a strengthening well profitable demonstrating is value. its further sheet our

meaningfully addition, intend restructure corporate footprint our simplifies. to In we expense as our

not our annual businesses. uptick for looking Now turning within visibility an sold financial reduced, we after seeing ahead, cancellations to but and adjusting in are we our our remain somewhat ranges is guidance outlook,

high and from reducing appropriate monitoring trends by the quarter go costs seen operating plan. are our results. Europe did we and as of tighten guidance guidance through have were detail, CapEx the release, expanding in the our to might you we guidance as end discipline in past. and closely our in earnings addition revenue However, on the the range. for cost disciplined provided in we the and in America, execute Brian in have while and manner benefits fiscal this QX Airports guidance guidance year consolidated providing as strategic third for a North will in fact There our We're business we

given market continued is media disappointing and the and technology. had optimistic. from so slightly our This In to that are is lower America the This auto see has agencies resulting quarter, are mostly third our we but the entertainment, to the certain fourth of an and intention QX. into pausing and we year with some includes remain we advertisers in we and the upfront, strong in is what start brands in with softening trend hearing spend started segment, June quarter a national

driven currently, last our North our in offset COVID-XX third to continued revenue it comps seeing grow prior second our quarter In part the rate as compared rebounded anticipated, the of the we momentum year UK, of somewhat business at airports rebound to the strength market than strength year. and we're even to digital due in Europe strongly footprint, tougher an As in by the in in faster seeing did the the timing certain potential the with by quarter. continued markets are for largest

manner, execute to Brian. our on turn plan, it sentiment now we we in operating me a are with let close a eye over and As advertiser disciplined keeping while that,

Brian Coleman

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

Scott mix but the a results, our with line overall in quarter was revenue second of As guidance. reflects consolidated our mentioned, second quarter

our reminder, during foreign talk in of I'll a also exchange rates results, evaluating We believe As discussion measure. performance. excluding our results greater GAAP when about comparability movements non-GAAP this provides and a

second with XXXX, the It restructuring and Italy, operating are EBITDA. discussions been adjusted segment the from to since these last Europe the are and including the quarter include segment. our businesses the on quarter that amounts unless refer to of the are exclusive of adjusted and the changes EBITDA expenses Switzerland, second excluded second I noted. are busy SG&A into compared XXXX Spain quarter and our to otherwise other Direct expenses the sell reporting and all agreement a And XXXX, sale percent France, our has South for within costs period entry call

quarter businesses all discontinued expected operation to presented. considered we periods When report in be Europe results, our all third within are South

results on May to are I to comparability when Italy. sales prior XXst on Switzerland The sold Switzerland periods. am and and XXst addition, excluding In Italy I businesses, impacting refer to referring March of

quarter Consolidated the onto million, results. revenue Now the was second quarter $XXX decrease. for X% a reported

the sale for second $XXX for of million revenue the and quarter the consolidated the rates, with range guidance after guidance exchange million foreign million, within was provided quarter in movements line we to in $XXX May Italy. Excluding adjusting of in $XXX

in China, consolidated separation. prior million Net occurring $XX $XX our was in rates investigation Included prior related and excluding net an exchange to relates million. our to loss venture of former sold $XX increase million, revenue which movements for businesses, the our liability disclosed X.X%. was joint over improvement foreign into in loss previously legal Lastly, was in net to up year's loss an the conduct

down movements million $XXX the businesses was foreign be EBITDA excluding in adjusted was sold Adjusted down rates EBITDA second would $XX XX.X%, AFFO exchange quarter. million, in X.X%. and

for for markets were continue reflecting was XX% results. weakness America Digital accounted National our for partially X.X%. offset million. Slide up in by to which $XX of the Francisco in revenue, up XX% X.X%. revenue Bay XX.X% On Local growth X.X% America for revenue X up million, X.X%, of accounted revenue was revenue second America to sales, of the which and most higher of America the revenue quarter deliver segment sales America area down accounted impact $XXX market. San

the expenses SG&A lease a up renewal headwind The the to to quarter that but in of lease since XX% and renewals adjusted X.X%, margin Segment down in increase operating expense $XXX rent QX a XXXX. rent existing lease including Direct the large amendments, $XX lower EBITDA lease were as large to tight margin from due segment mentioned The QX of by and creating as as well in million. the abatements. just declining of resulted was been million primarily this driven I abatements renegotiation X.X% to EBITDA adjusted increase prior compared the year. a $XXX has X.X% is XXXX, million, down decline site contract

and the the would abatements been renewal, levels. rent lease of pre-COVID margin the Excluding at impact have

Slide by for airports turn XX.X%. recovery airports. The increased and accounted to increase was to revenue $XX for of revenue, revenue in results was which please up sales, the Now up million. to robust Digital XX.X%. million, National which due XX.X% review COVID-XX Airports driven XX.X% campaign for up quarter of timing in was revenue a accounted $XX second X after travel spending. revenue XX.X% of of demand airports were air for the

up sales site million Direct a million with by to elevated a XX.X% million. revenue. $XX Segment segment airports. margin due The of EBITDA regional is abatements. to compared a and levels due abatements $XX EBITDA up increase was XX%, for primarily XX.X% which adjusted XX.X% is and to rent lease to exiting of normalized increase lower expense higher SG&A operating revenue airports rent bit $XX adjusted and a due to driven Local X.X% to down were in few accounted expenses XX.X% we're to

million, of review on is My our results movements Europe please and Europe the to South Belgium in in driven revenue partially street Sweden $XXX in North Revenue revenue. increased UK exchange commentary foreign adjusted to Europe exclude X North. and lower have notably North up to X.X% Norway. in and Slide been most performance most higher furniture Next, a was turn by Denmark, that offset and rates. countries, primarily for on by Europe revenue

costs increase total Digital related labor higher prices. for to revenue and is accounted to North to Europe Europe North to and rental expenses due XX.X% were and million. displays $XX The and up was of $XXX higher Direct million. additional up X.X% X.X% SG&A electricity costs operating digital

the revenue North adjusted to $XX lease EBITDA new that million, primarily from I was up addition, prior X% the adjusted the Europe expenses and increase was by to just higher EBITDA to X.X% contracts. and down mainly down driven XX.X% was year, $XX segment expense In mentioned. site segment million margin due in

Now in our South in performance on former $XXX Italy and of businesses decreased XX.X% decrease Europe our adjusted Switzerland to Slide South. X, segment resulted for an Europe revenue million. Sales of to XX million. FX in

EBITDA higher revenue Additionally, lower Europe protests, civil a as continued weaker the Spain demand to as related revenue recovery adjusted billboard partially well due as was by $X was result COVID-XX segment from to from France unrest from million. of offset South and takedowns.

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

$X.X in revenue exchange former by X.X% the decreased resulted of foreign offset partially businesses period FX Italy, impact the $XX CCI European for an Singapore adjusted of revenue was million B.V. of months mentioned. movements three in by higher into remaining decrease for B.V. CCI driven sales in June less our businesses This and just B.V. $XX of Switzerland of million. in $XX CCI million compared XXXX. XXth, which represented I million Excluding from the our XXXX. the X% was as than many income revenue same operating to

timing. $XX in at our limit. of the higher prior due a of down XXXX, second Slide totaled year lower Now the our driven of to as capital liquidity million moving Slide XXth, credit $XXX XX to first review the was cash June end quarter, to and partially decrease increase the million to $X XX, liquidity our over offset expenditures. by $XX and CapEx million on equivalents cash by to availability an facilities compared our borrowing million quarter, under due of On total

profile and tightened significant strengthens believe in know, credit extend were credit availability. revolving we which given to line, June, the As and market able you our amend we may our volatility liquidity

The During to outflow net the changes $XXX in primarily other interest cash cash, equivalents quarter, working and cash for outflow and second by by cash was capital declined operating million by cash operating accounts expenditures. $XXX capital, receivable. million driven and net paid driven

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

debt XXXX was ratio weighted as of debt a XXXX, compared times, increase of a our and lien credit as is was the The XXst, average cost to June to of average first the X.X%, compared covenant XXXX. XXth, Our March times. X.XX cost as agreement X.X March threshold leverage weighted of XXst, slight increase slight

Slide full the of third guidance Moving the year XXXX. on for XX quarter to and our and

movements but the guidance third America, have quarter and on other, year Spain you Europe we consolidated along include see and As guidance, full cash in to be revenue guidance to on our France providing guidance we in capital exchange of guidance And foreign we're can the our exception both expected our therefore, Europe are separate revenue Europe report expanded discontinued North. for slide, guidance still this North with operations consolidated payments. all results. and with when excludes and expenditures the interest Airports rates, not and South considered quarter is third

the our For will million believe quarter, and million. consolidated between $XXX we $XXX third be revenue

the the a compared over decline the be prior increase We to is revenue to be national $XXX Airport's XX% prior a million June, million, $X revenue about primarily and the of between and FX year, decline Based expected potentially expect million America. and offsetting $XX million. average benefit driven $XXX exchange be to rates XXXX. in could $XX $XXX There million a on Europe by revenue million. expected million XX% in an X% be $XXX North between year, is foreign softness to to in quarter and America in between or

reported Now Italy, have updated that in the we previously to of full are and year, halfway reflect our year through tighten the former we business to May in based the provided. ranges sale guidance our current on and high of visibility, end the our

consolidated expect we between year, to billion. billion $X.XXX full $X.XXX revenue the For and be

million is And On we is between expected to $XXX between $X.XXX expected be Airport's basis, revenue North be Europe million expect to a $XXX the $XXX revenue to is Capital million be revenue $XXX $XXX and million EBITDA be to and billion. to $XXX and expected million. $X.XXX to billion footprint America are between and guidance focus a million. $XXX our the consolidated of adjusted is $XXX million. expenditures digital $XX investing continued in million million. range $XX between be in expected on with million and AFFO U.S. and

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

which corporate be assume alternatives ultimately least remaining at disposition part and $XX annually. of our as those to Lastly, European of our million reduce strategic businesses, by would is for expenses expected of our businesses review uncertain,

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

Scott Wells

Brian. Thanks,

continue Looking ahead, our to about we be outlook. optimistic

continues America within remain our Airports of is strong for experiencing We annual remains deliver well solid the the continues In results. tightening North and guidance while ranges, business we'll take grow adjusting and businesses, U.S. local challenged our financial address further costs end Europe, if growth. ranges after our Europe the to national to as sold high as Within to steps necessary.

and strategic of environment XXXX, the European a our assumed its out mentioned, our will for reduce enable disposition corporate that we would in us lay to indebtedness. assuming and And resulting businesses progress company the we previously in a process timeline reductions. anticipate Further successful execution application continued sales stable of Additionally, material macro AFFO. of and review proceeds, net remaining grow as meaningfully cost believe the

ultimately believe for We drive actions our to continue these shareholders. value will

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

Operator

Thank you. Our is comes Swinburne from now open. first Instructions] question Ben Stanley. from Please [Operator your Ben, proceed. Morgan line

Ben Swinburne

guys, you’re morning. Thank you. be well. hope Hi may Scott, you. doing one for Good just

a you are seeing As you think from implied remarks, categories that about the called as fourth the your thinking are look them quarter? fourth obviously under pressure got quarter in prepared you sort You've what or that out you of into in I'm be sort the that's further your weaker QX visibility full guidance. to helpful. about categories improvement decay? if gets a just on would your just or you year wondering any of think guidance Maybe conversation and weakness continues this or

of to Brian, about both. second Americas renovate terms on cost we as or Thank segment then, the to you whether about second else And think want call and highlight anything the of the year? thinking the it's in year-over-year you half, want in half OpEx to anything out action in you'd expenses comparisons

Scott Wells

Thanks, Ben.

of categories. And summer. ones behavior June, happening We it pretty late. weakest. ones we that called categories First off, course ones called were campaign some definitely activity were that in The out little were of really the a weakest, out account the the of over the there's that the being The was the been been are start and it market broad-based. the saw the we eclectic held that on but has

current referenced As we we QX growth upfront stronger really think build, going booking I the thought looking confidence our to going in be. than mode. tell good we just is to see We is what talked are our looked like. being at QX things the difficult start pretty going we're very continues what going to have activity give that to that how QX that QX about into it to we when is this But be what saw when we might not us about visibility. always That's upfront, in people disappointed seeing always and also

part of going strong. strength this some The some, of this pipeline activity agency the of don't that the guidance our from we've I are like think to and we're shifting as to read think on campaigns. for of of hit going that It's it quite book people – been part is because I partners there and put thing we're the know particular, that their really seasonality. think. is into may been for But sure then hearing much September, does deliver things I are a out, QX really And of to seem whether that's a working lot plays go latter have have buttons year how the there in early And really I when build. has want be P&Ls to their the toward tech August, too this in question pausing

to a than and long Media this actors super the where strike important are media who movies go. doesn't to is go and be if writers us time. not going movies, as less entertainment and Television impacted a Entertainment, of on part of knows

me straight and what to take it but So given getting exactly expenses? you're we've Brian, create from exact about, guide hard do I categories where you a line feel is good we want between guess very very the is. that guide is, the to

Brian Coleman

Sure. Thanks, Ben.

half closely. the to to monitor For we're the of going second operations year, continue

even reductions heard elaboration. fact, of there you QX, think the lot prepared probably I wasn't of seeing are the we a some in benefit though script, in even remarks In the cost that

operations half adjust as the So we'll of appropriate. certainly the through monitoring and second year,

lot lap the to of kind but see as think It's continue of we year. continue last year, bit fall to had a away. chunky, they a we we'll roll abatements, from prior away those Abatements, the where I

talked from roll the we've impact will QX That so year, the this will large comps normalize. contract after the of seeing away still and that about. are We

I'd in also the year. this you CapEx mention same likely the prior that versus quarter down quarter saw

Some of that is timing and deferrals.

is that reduction. of Some

all this saying and what I what is as under operations I would to the extent performance we're closely we're expecting. think monitoring is characterize

levers use to continue to will capital appropriate levers We and cost adequate ensure liquidity. as

Ben Swinburne

Thanks guys.

Scott Wells

Ben. Thanks,

Operator

Our now Please Fargo. your is proceed. open. Steven, line next question Wells comes from Steven from Cahall

Steven Cahall

first, Thank heard that seem Scott, now. a like could especially the you. National. broadcasters Friday sometimes of But if you indicator It catch strong, TV Maybe bit auto. Local kind for talk little about in a was doesn't We leading to we right from Local seen quite historically, in some versus differences on that National have local is national local up trends.

can you're much little with and contrast in of a business what demand is of split what And demand? see how how and maybe two in bit you're seeing So local trending kind you your versus national local a you those of seeing between compare national?

quarter that Airports, have Airports, on the correct might rent you tough Brian, strength the a do you. in is And then there? just color abatement thinking it would how that on comp some third we model EBITDA? And Thank just love also in about

Scott Wells

COVID. to The more they've XX% national. mix. for and reliable to in And particular, is seen local And There with on abated of the I'll came case spending. about a pulling that. been that's definitely times. of we're somewhat for QX that And after tech has Ben, think stretch is that has split. a XX% been back know a ad recent more the Steve, and then guide really, roaring the start local, was it Thanks, working quarter-to-quarter, where than as National little I that national, their we back in reasonable companies, way impact it on and It really fluctuates the P&Ls Roughly, our start we've really but our since markets was and local, the two national. COVID mentioning

going exactly to As campaigns say that QX. expectation some better definitely it how is a bit have QX some I local be toss-up. advertising is I see looks we're that go. come a certainly than look going inexact off the but could forward, very of the for we would thing a Again, to little to sidelines, forecast national

national. that's local, So

contract. New are still had On a – of LaGuardia Airports, online this has been year. while. Newark the sort half LaGuardia. build-out last of LaGuardia online year we coming York We of the [ph] online parts came benefiting come second from of for

things it. those strength some of So in are the the driving

obviously, the and in real premium to travel take air this that's you lot are driving do question? very there advertisers a think, summer. abatement that of is want strength, the audience Brian, I very, the interested active

Brian Coleman

know exactly remember I last had of in can't the the I second Steve, Sure. airport half some year. abatements timing. we

when And disclosed as we think is. of abatements. I expect that should lapse we a reduction rent those kind we

through, some could wish airports only a don't more but it but with that's if relief, tough is you I to know model. be lead I'd an I to is can So could encounter that say I that come as Really, much about detail be the your in the to seek where Americas comp. probably give thing and that offset. specific, will could to X help place and we are when continuing as

with. something So work hopefully, to it's

Steven Cahall

a just of maybe I on And of Europe quick so you've got South mean Europe now, helpful. a done lot South all Europe. effectively That's follow-up now. done

you is also hub I print maybe think kind Europe better of North, which a lot the business for is Europe. a said both of and

or supplier of kind portfolio strategic how think alternatives Europe And to in terms divested if So do revenue I'm about South? in for versus strategically, more it to Thank the a you there's north benefit keeping you. as of it? any EBITDA European the wondering

Scott Wells

Well, definitely the review is ongoing. strategic

of a the – You're of countries corporate corporate a obviously, have lead, the have right, Europe their the that North in technology fair although overhead is of distributed country you you around lot have to country. where need a lot fair a sits, bit team of a bit our ultimately country as, the budgets there's around own corporate

that's and the exiter ongoing. Europe. a legal an very I of process of that thing is other We've sorts so that, be think countries. of We our been to plan. think is European in and there's accomplished clear making on financial much we've just overhead of our to have would certain nothing should really a the think that would platform. we're part create the of There's long-term And But what important deal conversion we've emphasize derisked REIT done some far – ultimate ability I toughest you the

that's Steve. it, think I'd I characterize how

Brian Coleman

countries, add an sold, that kind cases, Steve, businesses. we mind or the Switzerland, cases, while just the agreement, these couple in – to toward other manage expense on a these we agreements the in Italy of movement of Keep side. to And have still in got

till won't XXXX. Spain For actually example, close

But as So we've on in to when achieving to and is a reduce after we time – of businesses if a time. it But in we've there's tried process service at place we'll continue right lag period expense can. guidance do it will are those. Obviously, or a corporate costs reduction maybe provide there's some the for either the agreement these still to operating also got complete.

Steven Cahall

you. Thank

Operator

from Our Richard, next your line from question Choe open. Richard JPMorgan. now proceed. comes is Please

Richard Choe

a strength that have is on, Hi, supported follow-ups. international follow I continuing to just there? build-outs the the and wanted guess, then it travel I little are just I bit Has Airports. Or to a up few the help,

Scott Wells

been back portfolio, all travel a see in in hard think, suffered It's San on Francisco COVID our contributed. international we to way of with isolate like like definitely and individual and a things during portfolio, the, And – has have to like they've COVID. But it's our kind the international travel specific airports those certainly thesis shutting airport helped came travel And good of rebounded. international that's have to I to definitely seen international Certain have exposure buying people Chicago a international the in or most that down when beyond as airports isolate. the it. supporting broader we Richard, the scene Probably travel had inventory. have both difficult or Yes, Atlanta to airports stopped. lot JFK business travel,

Richard Choe

question be So less seeing How And that is there business? from or the it. mark? have side build-outs is you digital potential continues on strength of that bigger there And Got is then much the visibility to any weakness is – in to less And the there? versus strong. there? a are

Scott Wells

a our I digital mean have every business. you Yes. role in element playing of

strong, like that. part airports, European lot think the as and everything trading inventory we're business, and In continues there. modernize is that building it's be I digital of a about these if digital the the airports So of central to a

Europe portfolio, And the U.S. those proportion business. two, the of revenue digital are I has our can that. question growing investors in interested digital be because kind the but it so are is the And the of been very think of booking that our the part lot the suspect it volatile robustly. and is where part not most grew, portfolio. late are of – Airports our of I it And of is your it's A root strongest. it

get your or bit closely. as a to Does as we usually, you question? spot conversions, in of on continue down. to watch demand that think pauses And the is it something rich get we see of very when bullish that digital the little root it where very I we isn't market is the doing to But but be

Richard Choe

Yes.

strength You ended of than left just guess that part different be rest the your approaching softness the to where lastly on trends you're large a environment. give than that? on see that maybe cancellations. point? businesses. national in way the should a a it of follow year little just we this the open of a But that it little a little not best and up and overall could the a you all is characterizing more because it And color more at us is worse Or or just bit I it as pause obviously is kind

Scott Wells

precursor when business, And really so concern behavior and we it actually of think has diminished. exactly called the see business recession, it the when you pause on that's strength steady it on activity, much concern and to January into or out about that's been of it's question by is cancellation the our certainly interesting, going not? – that. tried haven't state is we downturns and just is be why When about about no you about very activity business. to seeing see the real a then – got and not the have And firm cancellation think this And you activity talking recession is hard that cancellation this it it's you not So in this a very really transparent things answer the of usually The we is seeing good. and time we're – what that, we've But think if of sort to on you continued give February hard May. as June, really really about then rough. a really improvement were really a you're wasn't year,

then oh, have saying, we planned in that launch lot We'll seen September. August. in people that and campaigns What a of launch we'll getting is

it's how load that sense where off. And in you good takes with business, very hard generalize a are the And exactly that if of get gives so kind visibility. of upfront think bit from we always to year-on-year pretty that us and right that we our the we're now. about But holding a little pattern of have we know

that comes in And really the June the as better then we're – in got last working spot and earnings actually have on it where digital our and the what's we behind to guide into July, market obviously, we play. that's market, do stuff into trading spot July that's at somewhat minute do guide. I calls. before very progressed. our mean, the Has And

exactly to it we bunch, behave, know I'd characterize are unpredictable land. hard it so all will marketers And behaving but way it's the it's and that as going it's to think an how

Richard Choe

you. that's thank very No, helpful,

Operator

line open. comes question Steiner your now Please next from go Avi, from ahead. is Our Avi JPMorgan.

Avi Steiner

higher for. flow, Thank just you. looking than a on was bit little Good free A morning. cash I first couple here,

CapEx. then for we interest I'm year, And understand I've working through capital thinking anything else? think, wondering anything be half else the I you. cash just back a if whether or I should Thank of the and it's follow-up. there's got

Brian Coleman

Yes.

You this mentioned investment in through though CapEx, the little ranged and business [ph] a interest even it the expense quarter. big bit we drivers in of

build. I seasonal. there AR is working a capital think It's big side, the on

those forward number this will I going patterns big quarter. continue think And so quarter-to-quarter. But it was a

so be difference. may kind And the that's of

had free kind items I a would so hoped three soft for. backdrop of characterize flow of we in overall than And little impacting cash quarter the those

Avi Steiner

I review Appreciate from The it's Scott, could. but one, then enhance I have last maybe, just strategic if to are – you couple opportunities And evaluating extent releases prior you perhaps maybe language, a but that? value. range one. can a And strategic that other Thank bit read elaborate I've maybe looks don't the possible, as if on me, got to but know, a for Europe, then, you that. possible, little as you. to of well to it you, changed

Scott Wells

But Brian, you Yes, there pretty see those And know, as our business. But are have can think on this as the the don't been of and we that various it not are ultimately was Avi, one you... merits. a I to we know time the makes more principles into right reading little we I for I and I that parts sense. a assets making intentional that. guess the first if I always U.S.-focused I in be, striving I'd as on think. and right I disclosure may we're go transparent strategically, write-up we've divestitures in world mean considering U.S., be but think, opportunity be anything that that don't this as clear, one we back than to

Brian Coleman

we than alternatives, and keep at look an mind Other but nothing always open specific.

Scott Wells

Exactly.

Avi Steiner

outlook the can, outlook Thank maybe conversion, for I'm earlier, lower one changed time. last equity your to given I towards you Fair driving a wondering attractive temporal much I are is your about enough. And peers, mentioned all if options REIT of and very and I always. if time know if at question, the REIT appreciate have nature, had be valuations there least let the me ask you in other might that of might as thoughts potentially ad at the which one but any the moderating company?

Scott Wells

it's Avi, great a Yes, question.

our give. think by REIT view ultimately that I benefits the driven on status is REIT

to those maximally, the associated with have For work benefits capital right structure have it. you to

I'd redoubles add you becoming characterize if think that. balance we a I would Brian, pull there's sheet trigger we in get to know, this before just if REIT. So our our commitment anything the I don't that place to the need anything right on that is

Brian Coleman

I think that's right, exactly Scott.

Avi Steiner

Thank you all.

Brian Coleman

Thanks, Avi.

Operator

Navarrete Instructions] TD now go is comes Jonnathan, from Cowen. Please [Operator Our ahead. next from line question Jonnathan your open.

Jonnathan Navarrete

Thanks Hey for call. good taking my morning.

first regarding is on The Airports. one

bit And like that May? speak maybe Was continued, start type about could the volumes So has has even? you picking up? a when little towards of it did end increased of volume or it

any continue that of that any as you fourth with fourth airports, will into are to the to up now? how insight follow-up do is, have quarter quarter bottoms a into you or pick seeing the And indication the

Scott Wells

a it we running what the enough And strength of were decision dropped that late Airports. and of was substantial enough what And very explain you're large benefit -- I it to We QX And We because QX very that is campaign call backfill year. a and of Thanks, contract. had drop outlook think to through. reiterate a had in happened that the our seeing trying that Sure. had just later campaign our to in Jonathan. in late be not QX that to I'll lot spent in time clear. the move in just from part able

And play that seeing so out. you're

It campaign. tend by going varies it. long location. varies people Airports in fairly buy in time plan advance has a to fairly relatively into well and It lead by advance. But well

really we with of takes that of exercise contracts. But York will is LaGuardia our from online impact. get tailwind have see that. into tailwind guide you And There that, more abate a build-out the activity and up-to-the-minute reflects Newark the differential the and we are the view puts year normal coming online we on New will still as we'll goes. so do sharing coming airports as And And XXXX, like the abate. things and the

about And very of today. what the is we we as feel good provide -- what guide that

Jonnathan Navarrete

Okay. Follow-up Latin is on just America.

this you investing are and to Europe the that? you first terms thinking on Latin of and in about complete America? prefer asset, how timing would review focus then strategic In Or

Scott Wells

said, always think, the at are, looking we looking Brian at and the I is. as where market opportunity always

to While in it overlap run the we wouldn't process, some there'll be be a resources XXX%. need

work to the we us the us need But do sense. conditions think that. for impossible not it's on in I timing to put that market make to position for that as So

it. I think that's characterize how I'd

Jonnathan Navarrete

the to business, it Italy, language the Switzerland, guys guys you word when but into the much you you one, divest. too and the And as perhaps last Okay. French reading Whereas describe I'm [ph] Spain, again, right. the in for used guys sell describe – release,

wondering So too reading this can this into France it? the we're can for for am much proceeds I – not I'm any just or like like expecting business be code

Scott Wells

the that process. midst think I think But it QX, in our are would not that council in that, of done be a closure we to goes we the think because we're not works is have we well. council presuming process And I works done its for clear the process. expectation been We're code with that review. I honor have

we're this to And not so on the point. really able give lot detail at – terms a there's of

Jonnathan Navarrete

Thank Okay. you.

Scott Wells

Thank you.

Operator

Our comes Goss Research. next Jim, from Jim your Please from proceed. Barrington open. question is line now

Jim Goss

the fairly a would And a operations like to I there be curious rather And selling was couple do you. off as company than Northern of doing them individually? spinning I have consideration potential operation, separate well. of are but Thank extent that others. Is a the Channel Clear that European U.S.-focused any to

Scott Wells

on maximizing this sustain that possible avenue, asset that Sure, can't that – or it a that's highest is or a strategic mean, implicit we to position for as beyond But any on think seems LTM now. an we're really in avenue that separating review, avenue use their itself. can value structuring right about for And a itself in I is if be sustain is that any not was when we a thing I comment that that not about that. that I'm the believe we that can we're a would That is financials, talk but highlighted I and going to in from. business look thinking Jim. the speculate like best business

Jim Goss

might doing you at? there Are were other those Norway UK is look broader specific be what and that Or distinguishing more factors something is, issues? Belgium, I'm one mentioned Sweden between Okay. there thing and we market-by-market but the markets? well, And Denmark And would wondering having were reasonably than challenges.

Scott Wells

do Justin, you one? want to that on comment

Justin Cochrane

Yes.

is it transit transits simplest the back those degree think think bounce higher only markets difference to got maybe way of from longer about COVID. at I is, we've to in a the and

think you saw in I of bigger back markets, XXXX. middle the those a in So bounce

comparative a markets got other else than distinguishes function have probably timing. they've hard basis, that So think that I don't comparative anything them. It's more particularly of there's on a just

Jim Goss

thing. last one And Okay.

mentioned And helping of that I also advertisers digital strengthening talk the we're you planning you're capabilities, serve. You range helping felt a you potentially if we're can might mix about additional access? broaden What be your any more local and advertisers you extent? to types advertising of change guess able bit it. Whether measurement, including that's mainly that. to And great national you I it and little wonder might might

Scott Wells

couple on root more we're a there's gets it. No. becoming It's of great modern the the to it question, think medium avenues of what U.S. Jim, in and I a of working to a

I that think demonstrated with related growth to off, We've been that in have the working we directly out time. efficacy that that seeing and analytic we is we've of. some have that pharma, developed we're and vertical first for capabilities called

with of when it of of compound is and partner seeing kind a renewals and because about we're of the midst the a we're key Now analytics. in that's result kind results the talking direct

the the of U.S. a category the to reason that, the meaningfully to America is, not or Part that CPG not we've the the the that globally, but traction but close is is have U.S. got. that assets the in of you've I Latin as Europe as with in advertiser spend phenomenal reason part do got street some lack seen data that good sale think are spend in related the advertisers of that not very data. out-of-home we in of is And point in U.S. like furniture

us enables term all. traditional partnership enables a dividends that data the – at media in dialogue think and is final over perceive you That saw be of there's the real to piece think pay announcement I us clean companies use for with in do to And then that opportunity really advertisers it going it something And the because on our is don't frankly us digital-first we them. we rooms. hardly and lot medium in is to be

areas And seeing all that opportunity so three it's those of we're in.

Marketers slowly. do move fairly

And and that six might it so renewals get do budgets. the idea start which of to tests, you budgets, the And you the not you get a nine upsizing start months, whatever and take go short it took months, the is aside you the to with, you had through the sell setting way once test works a is that's in then typically cycle, that you've begin sale. to to

this we're we believe future it's It's is a to this the very but aiming the not And key it. compounding much a industry, fast of so process. is something and process, forefront of a at be to

you color. gives some more that hopefully, So

Jim Goss

And like discussing CPG toward you're pharma does. national, sounds It more would that tend little to a that, if if assumption? and tilt fair that's it a

Scott Wells

Yes.

that. of – pharma, our there like split locally so yes, tactics, certainly, spend, our different it looking on XX-XX the planning one that up one. But I think national. of inside I ends less to of like right margin, sales in local also budgets more get a various horizon, develop sort don't mean, sales, that are lot in think local the yes, will a CPG, doing bit little force that's I think don't that, for knock-on some is probably activated change probably dramatically I more we're CPG things a that business, using you're and because little things kind

we're So our portfolio growth to customers. striving of drive across

Jim Goss

much. All right. very Thank you

Scott Wells

Thanks, Jim.

Operator

We currently questions. further no have

remarks. back to Scott call would Please the I So over go ahead. Wells hand to like for closing

Scott Wells

you time the where that midst, remains a for Bruno, this and you, and thank the in it's it's second business business leave there's to Thank Great. a the not economics. good in a I'd questions. This you market is But of three thoughts. of thought. we pause And bit our marketplace, all little a are attractive which go. just clear of a that our business very is entirely going with is with

of lot that a making do to about time. get real have hard until pays things scenes LBOs And to we're look, in done. you should when that are really something But they're done. done, LBO glad which on that, them midst progress private, an of things they're that hard over they it, typically We and the you're behind are be we're publicly. are the And that talk dividends are and derisking material

striving as But are we be to We pretty some transactions are – be. transparent difficult. these of can are these as

think striving a business this business. we're to be progress, So We remains transparent. good and making we're great

thank to you and Take your So for giving interest to as up we'll in make we us, look forward catching progress. and updates continue care.

Operator

you for Thank call. joining. today's concludes this gentlemen, and Ladies

You may now your Thank disconnect you. lines.

Clear Channel Outdoor (CCO) 7 Aug 232023 Q2 Earnings call transcript