CCO - Earnings call 3 2023 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings 2023 Third Quarter Earnings Conference Call. [Operator Instructions] I will now turn the conference call over to your host, Eileen McLaughlin, Vice President of Investor Relations. Please go ahead.

Eileen McLaughlin

Good morning, and thank you for joining our call.

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

Americas, Europe; of Clear introduction Justin Clear of Cochrane, review we'll join and Sailer, the of our will and CFO Dave an Outdoor Brian call. After Q&A a line and open Channel CEO of Channel results, portion and during for and Scott U.K. questions, the the

Before remind regarding call, the this I'd its future we statements statements we including and begin, its about like everyone that goals. company, forward-looking financial to may make performance during strategic

involve no statements and contained could actual or our SEC. risks earnings expectations, beliefs results there and expectations. with press assurance the the release of from will differ management's Please statements be or be projections uncertainties, review will risks All achieved that our filings that forward-looking in and not

call, also conform refer not measures do accounting that accepted generally to will today's we to certain During principles.

the on schedules presentation, a presentation. today, that Scott. will as I to to of to non-GAAP XXXX, Please replay. that be reconcile call the and of our please with time and results the November the turn earnings Also, X, management's X a accurate of may this provided call provide no GAAP now at longer speaks as over the views part measures information on note basis We reported these earnings only Slide turn in

Scott Wells

prior we for in a to This after third exchange discontinued revenue South, today. within join guidance excluding the taking of quarter, excluding the Europe as $XXX for is reflecting was year. We're million you to the thank and operations. which revenue everyone, pleased rates, increase to report moved to consolidated morning, compared our us delivered X.X% foreign movements Good time

as but in stood and mix August. anticipated segment North soft go drivers quarter sales of with drove when we combination the will out third lagging challenge. America, guidance in the Americas market provided the the Brian in Airports our national Europe on deeper

We believe quarter. better in and U.S. domestically a improving are we'll the in fourth performance the seeing trends have

we While we several for we in our XXXX expect and rent reasons, head challenging higher would unwinding we year a as Europe contract, into [indiscernible] within be trajectory we described, the a and costs XXXX provided to knew on year are as results excluding the guidance abatements are excited including on XXXX. be large roadside absorbing previously full February, COVID about

all structure; our X deleveraging As EBITDA monetize we our significant execute our management and With levers are higher-margin our cash our and optimize taking selling South segment. the free focused two, we've focus agreeing term. discussed Europe further previously, operating on or organically our cost team business key There of France, made near-to-medium the grow our are one, this: European continuing meaningful affect assets sell while including improved portfolio businesses actions and our progress recently flow, to methodically to year, of working to sale to Board our have this adjusted to on plan over in to completed we markets. on driving in

information. segment we process potential and Europe businesses addition, the In our sell are North have commenced the preliminary in buyers to reviewing

in of America adviser Latin We an have also businesses. initiated hired for explore options a our strategic businesses and have review to these

become enhanced of upon guarantee the REIT. we are we we less sale confident a a of U.S.-centric, focused While operator that optionality the process, can't with more will and assets, these be outcome out-of-home to either debt

adjusted we our reduce meaningfully multiples. leverage that know We also increase in to EBITDA our must order

executing our including expenses. simultaneously are So expanding corporate of divestiture energies growing on reducing EBITDA international our and advertiser our adjusted continuing optimizing deployment focus executing operating capital base, while we our plan, processes, are our we organically, to

growing key our deployment zero-based simplifies U.S., channels reducing liquidity our corporate things the debt. review turning of include expenses actions verticals developing to our budget These the in portfolio around like of proceeds and position, markets, challenged as multiple improve to from divestitures conducting a advertisers,

value. turn the We support generate which the us to believe flow to few free unlock road leverage these next actions to further achieve and provide meaningfully to years, stronger lower map multiples cash over enable shareholder in deleveraging should

intention plan Let deliver. our that the me in our Europe minus all first, belief EBITDA were support CapEx substantially with share is margin, pivoting assets that proof expected second remaining we business the the to In lower have our ability lower sell of adjusted I stated margins. higher sell points a to with to the quarter on of few XXXX, priority European to

fiscal see to that year businesses business a X, North XXXX Europe digitized in XXXX, compared with minus have Europe combined results combined can XXXX. now you as higher from EBITDA As compares for and guidance European fiscal we is Slide segment segment segment margins year our the which for to the North actual adjusted more Europe CapEx South

These assets, business. strategy, much are in expanding industry. be doing attractive committed results and believe have now the and demonstrate Europe platform value. we valuable we of including underscore we North the these disciplined And our digital selling team's more so We to will footprint while programmatic a out-of-home ability to maximize our strength to execute our and

Second, let the quarter. insight some me share fourth on

inroads be making and business called fastest-growing of in the our X teams We as U.S. areas. in several in we've verticals are opportunities out expect goods. building and pharma our These for quarters, both will are packaged good verticals sales

in we our success platform. continue see to programmatic building In addition,

been has month our October September, strong to a date. best Following

believe guidance I in our to Europe and call out the will within Finally, XXXX provided we excluding where that let started after me February South we return the segment. results be range

call on February. we growth will in for organic QX in provide EBITDA and outlook believe poised our XXXX, are for Looking forward, in-depth significant we adjusted we an XXXX

we team and work right So us, we have strategy we know lot believe to place the we believe in value in our a the full of we but deliver have inherent business. ahead is of

all would team focus Brian. to is hand let achieving our share that, the me to I this the on we for global With appreciation like on [ over call our as doing objectives. our score And work ],

Brian Coleman

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

is Scott operations Europe included as As in on XXXX. mentioned, XX, discontinued South now October announced

be the South discontinued the businesses During to third as criteria Europe operations. plan reported the of quarter met sell XXXX, our segment to the comprising

South reclassified from prior to changes in periods each certain been result, a of financial presented, for presentation of the periods. amounts statements resulting businesses As all segment Europe our operations in have discontinued in

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

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

quarter was Excluding exchange the for up X.X% revenue foreign in $XXX to consolidated movements the rates, million.

million a South provided of the we consolidated million guidance Europe quarter range included August and revenue $XX in third segment. $XX and for to The Spain France

range $XXX consolidated quarter to million. South our Excluding revenue of third adjusted segment, within was Europe million the $XXX the guidance

disposal $XXX had to provided we revenue, South If movements exchange from million loss in operations assets guidance rates, line Europe million. of of to $XX million, prior was loss the have included on foreign The million operations would $XXX continuing $XX $XXX million, an in net increase consolidated segment, related August sale year's million also France. net we of in excluding continuing included loss $XXX the loss the been The over from million. consolidated the a $XXX of with of

X.X%. was Adjusted EBITDA up $XXX million,

down in foreign movements exchange slightly. was rates, EBITDA adjusted Excluding

see results, As quarter rent down the quarter, abatements, $XX were our million which XX.X%. million down continued in a AFFO third $XX this in create you was headwind. to will

rates, in Excluding XX.X%. AFFO down movements foreign was exchange

America million, Bay which America X by X.X% media vertical market. revenue accounted were down On for was for Local to San strength revenue of sales and of rising showed revenue, for slightly was $XXX area XX% our America up to XX.X%. accounted sales, third X%. segment XX.X% accounted for revenue which National in $XX quarter entertainment million. XX.X% the America the in driven revenue Americas Francisco results. Digital of down Slide weakness

down lease primarily driven expenses lower expense SG&A a amendments were up XX.X%, million, a as and and million, down for abatement, legal property X.X% lower as related operating segment-adjusted site partially in to Direct increase $XXX $XX taxes increase renewals by offset from was adjusted The XX.X% well rent and credit QX a million. lease EBITDA by to to with due is X.X% $XXX margin settlement EBITDA of XXXX. loss of expense. Segment lower

third for Slide revenue for after Digital airports revenue travel results which revenue The local of revenue in airports XX.X% XX.X%. $XX to XX.X% the and of and recovery XX.X% accounted increased of in X air were revenue XX.X% accounted sales review turn was due continued Please digital and up XX.X%. infrastructure. increase accounted for up revenue, XX.X% to up million. airports Airports of was robust by quarter driven up $XX COVID-XX demand million, the to a investment Airports. which of sales, was for National were for

EBITDA remains a to expenses increase elevated $XX X.X% million. $XX and increase SG&A revenue. site a XX.X% abatements. to primarily XX.X%, million, million, up lease a XX% compared normalized with Direct bit levels to in to higher $XX segment-adjusted to lower EBITDA rent operating which driven and The were adjusted due expense due Segment up of abatements rent by was margin is

Digital operating to on due million. million, increase My million. to by turn Denmark, review primarily to higher electricity the costs in accounted and SG&A rates. higher revenue lower and is Norway. commentary and North revenue North. displays and North for exclude offset Europe for $XX and property X.X% direct U.K., foreign Belgium expenses Europe exchange our for driven of to by on Europe digital North higher increased North rental have X.X% revenues $XXX and partially total X.X% that to movements performance up revenues to prices, please were a is in Next, Slide Europe XX.X% of was tax. adjusted in Sweden Europe $XXX results The additional up been X

million, margin $XX segment North the a expense from driven was was EBITDA $XX to to Site segment X.X% adjusted contract XX.X%, down X.X% and adjusted the Europe renegotiation. was prior million, year. by up up lease EBITDA

CCIBV to on XX. on Moving Slide

fourth the the and as Third Europe well referred Channel of CCIBV company wholly is segments to our as due indirect in subsidiary our owned other. to the of and XXXX. of segment issuer changes secured includes It South of the our following the X-X/X reporting Singapore, notes quarter XXXX in senior Europe as included operations International BV an is North which

statements As loss of from operations, our the considered South Europe these now reported are the for periods are consolidated in businesses separate in businesses and CCIBV as below. net consolidated segment [indiscernible] are excluded discontinued results component discussion a all the presented of

compared for as XXXX revenue million. CCIBV to period as the results quarter from XX.X% to million from third XXXX the increased same $XXX of CCIBV continuing operations follows: of $XXX are

million driven $X in primarily X.X%, in of as mentioned. the impact Excluding movements FX, North revenue by increased revenue our I segment, just Europe higher CCIBV

revenue XX, was represented in period XXXX. million operating million of $X the than XXXX. income CCIBV $X of ended same X from less Singapore to September for continuing months compared the X% operations CCIBV

CapEx due the reduction $X to prior due expenditures. on capital moving in year. quarter, Europe of Slide in network million large CapEx the North in the decrease in digital and the $XX to was prior and over a to Airports CapEx. Now a Airport year totaled down of investments third million XX a review

secured we And loan Now principal $XXX term to at We In issued offering net repurchased prepay XXXX. XX. proceeds which principal a used portion from amount amended credit extended and notes $XXX we X% June, revolving million X% of we senior of to note the on of the in discount. lines. facility, a million August, the on Slide due our aggregate outstanding

to $XX these general to transactions, approximately million issuance of use We we $XX proceeds for intend purposes. costs incurred and of related the debt corporate remaining million

Additionally, our our in the and debt next $XXX the term debt million amount loan with of maturity of is maturity, to XXXX. in of August XXXX notes next CCIBV August

the up compared and of million to the $XX XX, liquidity liquidity equivalents. the increase September to XXXX, as due in end $XXX was Our at million second quarter cash cash of

equivalents the in XXXX, were cash and driven These the debt $XXX in the of billion at repurchased senior cash by a quarter, gain third X.X% we notes senior to September, and the million June In in of a X discount, the on During of by CCOA $X.X as market, mentioned. part large open our CCOA's just a million $XX was increases X increase I offering September note resulting notes $XX increased of $XX X.XX% and million since million, XX. million. XX, million extinguishment

Cash debt term period remain accrued notes in was our loan primarily interest the quarter, interest due million timing paid compared $XX rates million increase Repurchased during $XX of third the and outstanding. to year, for same interest higher the facility on on prior payments. the to

average Our of slightly weighted of XXXX. cost debt cost weighted was of June above average debt as X.X%, the XX,

leverage As based Credit compared September on a was ratio to of is calculated June covenant lien continuing XX, slight XXXX. XXXX, increase XX, our X.XXx first threshold X.Xx. agreement operations, as

movements guidance All and foreign guidance of capital guidance interest exclude has Europe the XX note adjusted consolidated to been for and our segment. rates, expenditures our exception guidance exchange Slide and payments. Please the with consolidated to XXXX. full quarter fourth the in North on the exclude Europe of year [indiscernible] South cash Moving

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

be quarter as expected be to We between and expect $XXX to another the $XXX revenues strong between America million $XXX million and compared revenue $XXX million, prior Airports really and is million year. to

to expected be revenue the prior year. Europe-North $XXX is an million, over and $XXX between million increase

guidance. Moving year on our to full

we a would of we Europe-South be the August. thought to detail how Given result discontinued the of in to it show the operations, adjusted as segment helpful change moving the we provided guidance

to now the As for of the see close that are revenue. slide, the can the we on range year, end we tightened have consolidated you

to billion. revenue and between consolidated expect $X.XXX We be billion $X.XXX

and $XXX is guidance. expected, mentioned, with between is expected also ending $XXX this billion $XXX to Europe-North $XXX revenue revenue year range revenue Scott the excluding in also August expected over be million expected between between As million still and $X.XXX guidance an America than February, billion. improvement to within $X.XXX million, is discontinued stronger million. provided to the and operations. be be the Airports

and a adjusted million to EBITDA slight provided On basis, $XXX we in consolidated guidance discontinued excluding million, $XXX August, the operations. over a expect between we be improvement

range million, $XX the footprint Capital is continued to be million are in to of guidance expected $XXX investing million our a digital in expenditures AFFO million. focus with $XXX U.S. in $XX on and the

facility approximately up prior interest payments $XXX for I obligations to over are Term earlier. expected cash B higher to our timing interest due the our [indiscernible] Additionally, XXXX due to payment interest rate be on August the million, year transactions of guidance floating Loan related to described

of the cash his for And We expense additional call to incur the million me turn that closing paid now This let expect back be we do or not refinance $XXX quarter. interest fourth remarks. in assumes debt. Scott to guidance

Scott Wells

Thanks, Brian.

Looking ahead, in annual we confident guidance. remain our

our believe organization our as adjusted media position powerhouse revenue plan only concentrate our assets to our business, profitability. on will elevate improved execute we to continue and domestic ability our to visual and EBITDA We to drive growth. We position on and our streamline our and modernize taking strengthen organization the growth for are steps a

in As work improved America material sale review businesses the the and will flow begin on drive believe deliver EBITDA, equity we free and reduce we creation. growing in of strategic indebtedness adjusted our Europe-North our progress Latin we organically value businesses ultimately and to our cash and of

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

Operator

Steiner have JPMorgan. question from [Operator comes our Instructions] We first Avi from

Avi Steiner

differences just And versus what if then fourth [ I've just this you discuss in of any start follow-ups. quarter? material cityboards your seeing the you're And couple maybe a traditional with Airports ad And I I ]? to got if can. [indiscernible], environment, want could in

Scott Wells

question. Avi, ad a thanks for strange been the market has really This year.

little a I'm so give And of hesitant sweeping generalizations. to you X

of Roadside look on going premium on which whole one If super you going year, has versus kind the the our at we you what just has nationally on, in assets. can dynamics for focus see been been for reported nationally Airports, business strange of America all that

It's into very that continue and QX. a we're market year, been premium this seeing

and picture, there the see strikes the have progress are we'll entertainment I up. we auto know actors but working, now starting back we're get vertical and some that hopefully cleared writers Obviously, a I aren't tech us, think yet, a companies media the talking think big huge And point to not That's huge seeing their more impact. not we're for a investing in little where to a about aggressively. brands there.

direction. things a of number a are in there good headed we're think I suggest that

For the in us, whereas a in Texas, in think not Area lot more. we've markets, have been goodness along we've Florida specifically, some East frankly, much and California and But of more trends the the do great of seen Midwest that a I the generally, Coast. it's Bay and seen year-to-date challenges

much driving I normal think normal some this that have referred market what's you on in on. It's a I other calls. to dynamics more local going

market say that had a tough in some in Avi, And that that there's but pharma obviously, it's we it and strength there in the So indications up call pulled referred that I'd in general, year. with we've are firming generalize characterize is seeing CPG. in been areas to this to I'd on, then investing and growth some back categories

flavor. a you gives that hopefully, So

Avi Steiner

quarter, as Very if I'm believe corporate, if adjusted a down expenses, Europe corporate if But about it. I remind I through line more. couple come turn I discontinued, has how side And can once North should what helpful. South then this corporate the can could it there's think corporate? got now I Europe about us is pieces. expense we will And moving then forward, you you then almost savings think know some wrong. going could. and I've correct Appreciate we to And sold? was XX% if But this me item

Brian Coleman

expenses, seeing unfortunately expense But is one. year and that bigger look going We reduction the it. I business. the within looking in about variable we of at reduce regardless on lot activities you're of America. I'll Avi. hasn't opportunities performed a to of take as expected the that's this kind as to are corporate business are that question savings. Sure, A particularly compensation And make think

That You the we of with for catalyst divestiture $XX will at least cost that pointed businesses, said to of doesn't examination expect period the to longer corporate expenses center in in a We've something is the to would of that international expense. embedded past, further from be corporate examined, of million will corporate the reduced. or time take costs but be need include a may business. the That be shared extract to also divestitures.

why to expenses, be other does sharp rebound happy [indiscernible] we bit kind capturing use qualifier time, this bit that's if expense, in as I reduction back. So will corporate a a corporate of of rebound expense that related a But least expense business we'll in both But pay as to we working focus think little little the at compensation variable divestitures. headwinds on next tied year the there. which were we'll well will as the have that hope general over be way look, are

Avi Steiner

with buy right, liquidity Super had you we've last, them. in not happy a those what seen such. Brian, I a should you want it's around bit. other only but rationale consideration? the know the I pay I to I'm that number, is is the And and and a first, coming or certainly outstanding that back curious me. more first bonds Is covenant, as on you helpful, big that just I I liquidity the to the keeping retiring And that when buyback would buyback bonds we and outlook. historically XX but [indiscernible] sure for heard in. and not million side, make agree for read said revenue Two when the is think

Brian Coleman

back the buyback, your bonds characterizing as function we thought in a what correct [indiscernible] wouldn't the something bonds return, spend the liquidity including is on I comfort the in bonds of And marketplace. things, So of think liquidity buying of liquidity, it was that worth a we are the you're of it availability number with unless on return.

of the windows the strategic to Europe-South We undertaken mindful divestiture with activities and on, for that's process very now been process of be us have going of opportunities a also in including the number Europe-North. of

of that the the we back not of are windows windows limited you few return to we a would think approach And I limit are There and the also possession of where of be can kind bonds. in amount [indiscernible] disciplined opportunity an comfortable and buying buy bonds always back. acceptable

repurchase -- so that's there's purchase. the ] only [ part of And $XX million reason why of $XX of million

not Once mean, to requirement. not have to That's you them. respect option unretire can't your them. I the retirement, that's retire with we So retiring, final. a could

just that think think, point. I gives to or for else, I leads holding optionality whether undetermined So on ultimately, at anything not, now them more to us is this

accounting For eliminated purposes, be they'll consolidation. upon

in positive the also a benefit income with debt the the see statement. associated off come there and will will sheet interest balance out you So that will expense the come of

I all think didn't I answered to... your if questions, feel I but free

Scott Wells

other we Avi, off about we technical a $X.X the savings loan, that, chip of of term of year. avoided one and tune $XX liquidity million the and just confidence profile. about thing we payment to way the generated about that I'd actually million in amortization in also The paid

everything that's how So sources, kind just the we're doing the obviously, to described. about of Brian uses, really think

Avi Steiner

for would the needs more time And about, Scott business I or is little build leverage-wise, but and as today thinking like the bit debt company question, around, is have get the again, equity-like had asset you'd the instruments to at you and perhaps, the has always. my and growth as Clear is the bigger you're methodical looking it last company sales, its it And all? debt where kind Brian, here in to plan my of appreciate just some I really of Or raising move But clearly and And to bridge for swaps many debt maybe were. early. as appreciate done. equity it with the with from EBITDA at to like, today, clearly a U.S. I'm time. too the where even holders work Channel chains you, I Terrific. like buyback entertaining to a core among equity little options reported of discussions curious, be seems a if and

Brian Coleman

Ali, Dave or that to upon hit if at that and detail. take go they more of I'll weigh some looking Yes, Scott things a at. we're then you the want in stab into have Look,

So taking growth. put our strategy, is a EBITDA step back, X in I'll categories. One

You growth something mentioned focused we That's of do. going the And in that. drive everything businesses to need certainly on. at the to That's forward. we're ultimately, core we change our leverage profile

mentioned M&A. You

But another So It what would process, at includes Europe-South; I think done broad category a but the strategic America. review about expanded broad very and is a launched into, are which with talked okay, markets, it be only Europe in in Latin look respect to. it I announced M&A, to we've further way, not sensitive we've could the consideration we've North; U.S. sense. we've in in

it way the capital. partnership a where that requires at do we investments, future less look in we maybe Maybe

because much about. have lot than a talk don't want So you the those broader more bucket, it maybe things can them. third liability talk of difficult some talking about mean activities meeting about management little the a things It's things we're you a can some before of to it of and implement the to

guess business. had our point the that the the ways have optimal proceeds We'll divestitures with have have seen our apply investors. the I get to to you've of some those conversations what obviously we I reduce in conversations answer to and way -- about the talked of to with coming obviously, your the we debt from fair the that, we've alternatives, are some proceeds about. base what are always But are think in investor in But other or invest otherwise baby to question, repurchases the most steps -- debt

that think of But through has worth to and to enough investors. those of out not Nothing open always some point responses the been it's I And any our where about. disclosure something just Nothing have some questions that on ideas dialogue working we risen would has it. been and we're the been -- there. really making that in always company and that's required is to. of And talking with are have be kind the that's inbound those tangible

And we'll thought. add. so creative have we're listen or that you if certainly I Scott happy give And to to know it if is interesting, don't dialogue, something ideas. have to Dave, thing

Scott Wells

No, I it. captured think you

Operator

JPMorgan. comes Our next from question Choe from Richard

Richard Choe

follow to implies into wanted guidance the up ramp XQ. on I

to know seeing And it's get next the little of and Americas early, I sense wanted a you feeling but business what Just you're now. a are Airports to year? about how going

Scott Wells

Richard. we where going post Labor talked lot do into in so. Thanks, I'm buzz that people what the were it back of to market looking the take anything cancellations in looking uptick right Brian were in can And people to that obviously. to the at Day, August. was see we see now where didn't than What we had if we see what we the Okay. this. And going been. August for Dave again, things And did see and have add, back And we we an a constructive I'll how would in about the step couple which be on more negative cancellations, into is we pleased market actually step uptick report a market. is to the side

So that's good. all to the

been upfront date second companies are our question only have we in in. question, little tech hearing On XXXX, The of to encouraging. had that looking are circumspect some that referenced more just dialogues investing that terms back Avi's of in are now the we coming beginning at on I a process. we've part your

there [indiscernible]. programmatic buzz We feel out-of-home good be marketplace, programmatic is is are excited going happening thing about And been a the that about in what's CMOs progress XXXX. we're and making among we've in categories some we of that in the definitely trying a to the

return going definitely I'm got learns I a heard declaring Brian upfront could we to going I'm I enough think our this other until [indiscernible] suggest and would well that don't getting they're assets the I to the enough with on Anything really you'd to the lot where have positive sure characterize it out-of-home money of Dave. that, think good have markets we But in going because speculation market political see an But in you've environment doing is test to this it and be anything, brands positioned a at been add, is that XXXX is consuming out-of-home point, way positive. positive. things before. be is for not media, that have believe and but we've books ad using or outlook I an that be that in Richard,

Richard Choe

anything the could programmatic of itself? there do take is kind to on demand? care And maybe prep that Or higher side Great. of will for you that

Scott Wells

The programmatic beauty is is highly that scalable. of

dream And -- back started we've our a only having work. [ demand to that us ]. intervention to world business. goes first that perfect, It's part not you help but it constrained to position we tell in manual more was on that because programmatic capacity on their as to So a are it fulfill we will a about still to if the done I'm when absorb think lot there where I'm make I direct on so not this, demand people able were

Richard Choe

like viewing business the me. do the point Europe-North in. and and impacting well. pretty ] outperform this be process other bidders it how is the looking would you're How that well. it's great that one a position maybe the doing review seems at and at because to continues for No, strategic Last to be way [ are

Scott Wells

up to with would continued the portfolio, doing and markets of let conversion, something So along those that team it's focus our the to an worth help pivoted think at when actually the it maybe programmatic the have in we would that with the well. about Justin, our them the last why and achieved you me on cleaning I is and digital that first. continued that deck. understanding look Page year but been Europe-North saying they When that, answer middle was slide doing the tough the tools investment what's first question your of And X LaunchPAD pretty lines achieve things

is is with that work to us people kind that that on appreciate that But of impressed process potential been of pretty at feedback they that's And to with done I that don't speak seconds can't point. about have the It say relative that the in But buyers it. performance how on of we it's January thinking adapted has this I early portfolio what are appreciate SIP still why our basic we've published because overdelivered and the They drivers portfolio. gotten Justin, you 'XX. see XX give they're as our we days. can Europe-North we've special. the all just the

Justin Cochrane

side most plan growth. driver is And Programmatic to because continue you incremental. impact. digital the of big growing, revenue Thanks, really it's the Scott. across that's the when footprint And we business. It's but that see is alongside a we've Yes. I the take Sure. mainly a rollout, and continued digital small had biggest is continued quite has have there helps we're that doing especially the in the with assets, think where and on what like road U.K. Well, street markets furniture. that

assuming, I of that good with on a there's only but rollout really couple I'm be yes, a bit digital programmatic, things yes, So think extra that, drive but helped top. have adding the so process, for strong can continued it a

Operator

McVeigh comes Morgan question Our Cameron from next Stanley. from

Cameron McVeigh

Just a couple.

over the Europe revenue I yes, is digital. North Point, noted of XX% from On there's

in how contribution forward thinking going what the and you I the [Audio is U.S. and Airports. U.S. the about for are conversions, Just ideal both guess, curious Gap] guys revenue digital

Scott Wells

Cameron. Thanks,

of environments. business. So really with the let U.S. regulatory me start The patchwork is America a

in that to of they're their similar of that revenue business number XX% to producing Europe-North are a have XX% profile digitally. We in markets our

are outcome regulatory likely very environment. long out there's markets We digitize, a trend think able long-term but years, as over America constraints I way just have is the because of played this is think high has to I time the because globally to there. that X being in from away probably the not and the until the now, that And challenges of regulatory a about also that you think it as

York flexibility and it's say environment. operational really, contemporary airport And in you've is seen and Anybody we most where think Not lends within use the airports, static much that different. digital for it digital airport that of static attractive to implementation who's which has there's seen it plays just are the it, itself I Airports, -- digital places sense. to traveled really and the not our rapidly. business through make But really of could extremely immediacy how grow New it In environment. the the

makes refreshes So airports. not to we're we're kind going airports that already digital sense JFK in of that of pacing terms digital at it are of cheaper, see sense doing in the XXs and the has at regional And where on in make the definitely while airport going and LaGuardia frankly, because the I gotten will penetration. And higher. be implementations could

digital And so higher to your space. I balance But of addresses Hopefully, as a that see proportion struck. there's airport that you'll question. a do be that think

Cameron McVeigh

Thanks. continue last do abatements, does the receiving It on And these one, rent abatements? you expect much definitely. to just then longer how guys

Brian Coleman

can stab, a comment Americas. [indiscernible], if then take I'll you and on

think we're through. cycle seeing I them

seen haven't Europe. We anything in

I think we're done.

what seeing we can, side, that. pursue On business the continue cycle we the Americas also to but through we're

in think of most Dave that. are largely it about CFO business, them I'll Americas to Sailer, of talk over the I airport to but turn

David Sailer

and the in third it. Yes. relief segment. that's away there over QX -- of But quarter out Sure. amount the definitely point group, get in we the off we're lot some the trickle a I'll definitely into it on significant there but further XXXX, But I'd Airport as more a get at time. XXXX. we definitely into end tail was probably trickling still of COVID. And as roll to off going Airports start of some starting They're XXXX, was from to

this large the say roll mean, into definitely think relief at a contract off got end that's front, was I [indiscernible], when one we've headwind third quarter. before, year, COVID the to end probably our that as you and the really And and I'd On kind of the this from mentioned renegotiated the of America biggest our we going we that we're of about standpoint. seeing

bit an get we from the little ] year, as end Airports, left on America a more next into that So standpoint. but seen [ I role of we've think

Operator

from Lance question next from Our Vitanza Cowen. TD comes

Lance Vitanza

Or a of to expect that seasonality month feel the Nice we'd just say the still about this October favorable comment we refresh quarter? -- if And job there's that you best would adjusted Scott, you as September. would we the I quarter. could October just what of best then strong were that you a wondering after maybe seasonally said think on month that's of into year there. we sort you the sort on of the was [indiscernible], whether kind get is I'm fourth on real kind if year-to-date. improvement think said

Scott Wells

programmatic. ever comment Lance, So the at programmatic. directed best in was our It was month

the overall that not business. indicative So of was

So it I narrower interpreted. a think, was than have might you little

Lance Vitanza

is that that the share other out-of-home out-of-home general seeing, taking taking from you you taking from than ad momentum is then advertisers? are -- forecast? medium Or And are that a share is sensing you're you're in just the other spending -- you improvement media? Or had

Scott Wells

So do relative certainly gaining to traditional share is I out-of-home think to media. media that relative traditional

and results. pretty report good digital had heard You've companies they've the

But we're I that taking not that say So think a to from going an thing. lot it's optimization channel.

mix media, know synergies in pretty much particular, regard, And trying the we a part that regularly. and and lot that a seeing reach, the they're very a relatively are of out high is of advertisers we've that medium us ecosystem and hard-working the out us called of figure use to in well media. with have optimal We advertisers are what media small digital

we're high ourselves ]. And growth and positioned included those so and advertisers. reach I us an hard-working think driver important we're alongside media, of that going generalize for hard I of forward. do thousands campaigns that's to think But sort medium a thousands it's get very in as the across well seeing [

Lance Vitanza

a last to just back the for then for to me, come second. Airports one And

You year You stronger of or we I'm you're the in about perhaps the more you'd passing wondering you mentioned potential get embracing expected. displays And there. than through X the thought medium what think I just sort are more thought, so you'd the see drivers passengers budgeted. right? more if ending just than than of airports place that upside, could sources than you advertisers

you here, sort those of missing there in would had attribute maybe So the you're that what the you but how thinking or versus others been relative of X that earlier year? strength are I'm seeing

Scott Wells

all Thanks, think Look, just it Lance. for a which of little it's bit inventory X, let a add fourth, I'd unpack timing is it. me but just I deployment.

to very had going year strong knew be because So this airports for we we was build-out. very, strong

strong the our we CapEx the York deployed very at You buildout, in periods, in just franchise. had look our particularly New that airports, prior we've

of so come months. in of last And mainstreaming just bunch XX a is that's part online the it inventory

traffic when dust That really XXXX up this at its really But left growing XXXX. used to point. and was about It's it, relative on. I is we in think own airport It's the now really to double what right. fixate digits

premium L.A. well it to locations about means a in a market, a digitization minute The you named I those has continued, digits. times market. think or it's market I just benefited airports New red double terms XXXX up lot has in things York advertising it's of So Vegas. airports, Miami to the New a X number been that of means has that hot, the iconic us dynamic. or bringing super and been iconic that of from we in in has how red, places, of been That with And York. referred But or suited advertisers, along whether which contributed part online talked spectacular, ago. great it that's means all and inventory

Operator

Our Cahall comes Steven Fargo. from next Wells from question

Steven Cahall

And I your to sorry bit you missed I in this performance could just market. Angeles Los wondering little if was a earlier, but if talk

drag. been with significantly market related. like But solved for largest the looks bit and relatively that of those know a be soon. to It clear are I reasons ] strikes. obviously, your are a pretty has [ that's the M&E going think I

you once resolution unwind you what up ] trying or successful that of that have be see[ about we might how L.A. then corporate do And Europe-North that be finish on just asset? normal. getting excluding you you in to questions, improvement back additional do understand kind and/or be also in So to able M&E some to the a XXXX, divesting what on maybe overall might overhead some think you get to assuming EBITDA. that follow to of you if maybe can costs the process, of the Just impact could of Europe-North,

Scott Wells

I'm have actor media and the a question hand that it be very I'm strike have answer in talk LA Thanks, corporate but little the they've by campaigns to national all to those to impacted local maybe as entertainment, way about activity the advertisers, writer L.A., entertainment environment. I going the specific. it to not just And but have a is L.A. of strike to impacted and media folks and Steve. entertainment, advertisers launching is costs. less. And answer have strikes, to been impacted the potentially then With to little try just also and impacted going this general they in try I'm which media And less the On Brian can. -- into strikes inclined to it, as going a well that

L.A. California. about seeing are context in of abate in I that We But think QX. the

the very media So of impacts. And technology you and then year. insurers. much complicated auto to this technology relative category California important entertainment and down is a is has been California for have

been things San Francisco And our you're lot it's third our of a there largest So market. right, largest impacting market. is have it.

majority of going So in be you vast And our the those year. better forward. a direction are seeing of signs verticals, we that impacts dynamics, that's the things combine impacts challenges moving the of California those of this will explanatory

a the for moment, work to we'll moment why it you through, it the really cost trough L.A. I Brian, a corporate challenges has to that think able be back trough and it's But don't feel Hopefully, writers actors on hand that QX California think hard part. like to in get and I pick but could getting the always will be call I be helpful. to I will indicators up. our

Brian Coleman

time your are $XX of that at earlier, the see. easily to identifiable statement about the at divestitures. I this kind Thanks. million around the divestiture. the talked of but think I way leave costs least question really that we post will goes little about are Sure. think that could $XX international or to opportunities company it direct other we think that And is said that in we the out least that at is the take And then a bit And million

we And easy of goes, part. that's into directly the segregate so drill related corporate And about. to that the well, to that's think down kind overhead what there's okay, might the associated about, top-level or be go corporate They needed. that's with direct be they example, not overhead not the that in that European of embedded corporate kind costs structure. that It's necessarily there's other is when example if the to you An think would corporate are with part the intertwined for treasury business a that, easy business, other of would staff, they're business. but

a There to those of but corporate need go. maybe may and time, would after the things international level they work on after that at be unwind things, people period

to zero-based important analysis a it's think some take look this. in analysis, when at out about introduced I we script that cost-base new the point language we

make post we look. We're take costs to to in going up are we're that build going We're divestiture, So that from hard a bottom. those going the capture sure structure. all to

Operator

Deutsche from Aaron Watts from comes question Bank. next Our

Aaron Watts

the format U.S., at the soft of that print weighted Is towards for I've you've key Just today. verticals being are driven are X talked out you've of maybe a the by markets called some print. covered some the are of specific me. lot that the the In ground versus about more digital? the questions what factors or driving relative softness specific that of moment

Scott Wells

other I'm know down going answer that and The help macro we've to going on. it's also very a more on in overall much. print little what's weighted are don't print I are markets time than micro that because of going actually of the will factors it that's drivers give got that a to you question. markets. a So The that are

characterizations U.S. That are to been lot overall to a this ones. we had the very and closely name a the has those in kind as of think But back auto on I'd market macro come thing challenges as the much only not insurance think this of market, I drag big the we would print. look at be having incremental year, hoped for I

Aaron Watts

to static mitigating there? legacy it. not, the then each factors Secondly, close margin can think as And us platform? you and this accretive? 'XX for are think as continues to digital as importance, Or board how the you and the in And rolling expand stage what 'XX the of margin boards profile new at out if of we remind Okay. Got Americas should about versus about to digital rollout, the digital added

Scott Wells

business, packed yes, when our high-margin our ground signs I overall we long-term well, business always digital and is outside to few into mean inherently and/or America They get secure -- are there's as a the a But convert lease a try digital our the Roadside lot locations. a do we them. product. spectaculars of urban underneath but product a higher-margin that So

a So way tailwind, it's one. you as a that not the margin put should it think that's of but Tsunami.I pippy guess to

right. All

think I to ahead, go -- operator, going we shift are please.

Operator

am any have questions. to I don't further going just comment, we

hand closing So you for to I will remarks. back

Scott Wells

to in we've Great. most been everyone of And thank I When you, remind America, just the Europe, to couple interested guidance are of I improving Northern investors America. a able strength on in know look say everyone, we're in things. that of for at and our our want joining airports year-to-date us I today.

almost year for the market of more total for is one than On and one grown total year-to-date. accounting twice twice the decline. side, have our revenue accounts markets our That's decline the for half market

In in this category the the Gap] moving time programmatic in right addition, and early since seeing year we're growth [Audio for first double-digit direction.

coming absorption and to lapped refreshed the of abatements we're we side, fully almost out the onetime the of long EBITDA related year this that the On COVID. large contract have

that brighter So airports lot call, things the believe there's shared ahead Europe the Northern our with in see get we in done for our of days the and portfolio, hard couple a of ability to throughout our to performance areas teams the CCO. we of demonstration focus reasons

Thank With again wrap up. quarter. talk that, it and we'll all, we'll next you you with

Clear Channel Outdoor (CCO) 8 Nov 232023 Q3 Earnings call transcript