CCO - Earnings call transcript Q3 2024 | Clear Channel Outdoor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings, Inc.'s 2024 Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn the conference over to your host, Eileen McLaughlin, Vice President, Investor Relations. Please go ahead.

Eileen McLaughlin

Good morning, and thank you for joining our call.

are our today Sailer, and call CFO. our the Scott CEO; Wells, David On an the overview operating provide will They of Clear Outdoor performance XXXX Channel Holdings, Inc. of quarter third International, Channel Clear and B.V. Clear line Information Cochrane, third you recommend presentation U.K. the we'll Investor Channel during the download results, and XXXX this CEO introduction the section We review quarter call. After of our of our for an the located Justin earnings in review of questions presentation and website Financial and open a & during the Europe and Q&A the Dave will join Scott portion of call.

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

provide call no Scott. accurate speaks earnings results now today's that management's measures as will be also refer We see not as over the XX, views may conform earnings the that these X to reconcile During Please call and of a in part on I reported to presentation, this only presentation. Also, October to on to will the a longer generally the call, Slide time replay. GAAP turn provided with XXXX, and at of information today, accounting of principles. measures our that non-GAAP accepted note the certain we do schedule basis please

Scott Wells

across during us our movements in thank or third segments. the growth you excluding the all X.X%, X.X% and of morning, today. quarter, in million $XXX for guidance join rates, line foreign taking Good delivered with an our representing of consolidated business everyone, increase revenue We with to time and exchange

segment Airports delivered another across with the regions, majority growth across and demand driven national by robust all to advertising. in from continues channels, Americas strong the part in portfolio. delivered gains all Our benefit Europe-North quarter an improvement of across

see investments at audiences. expanded out-of-home from initiatives sales into aimed We we're teams and inroads our our continue analytics reach our our have and relied technology resources, the performance on making U.S. our to leveraging benefits traditionally not the their maximize RADAR to digital expertise target verticals that data Utilizing to in

which us. really we East, of to for the is doors recently campaigns, from can sponsor first platform open the where served share who our pharma marketing past reception We pharma results their partnership point us of example, vertical, deliver household RADAR under-index For CPG provides measuring while further with we've purchasing behavior. In a ability on and the campaigns our a nationally. Digital for announced via This in as advertisers recently Pharma our one conferences was their impact strengthens and largest industry a was reached the compelling promising. some effectively with Circana out-of-home, helping now at message the to

companies we're footprint, with large our to award New This contract advertisers of ability excited are local and advertising programs for substantially to footprint York about our New at ahead. With area market-wide contract expands MTA. a recent year complementary and numerous a deliver York assets table elevates roadside the the our by the discussing regard and pharmaceutical controlled for We way. in campaigns tri-state domestic agencies the now the potential in their in XX-year national

momentum the on and see expanding year look as platform up to our close our sources, continue in revenue XXXX. In growth to well in focus continuing going So the the we we're are we America. making further notable to current us on quarter, which our we into progress in as revenue out plan our U.S. sets and pursuing build scale

although up remains comps, quarter. is Our post revenues tough to comps flat we're the also so now Similar strong, Airports, against up Airports and will rate tougher against the could Europe-North business naturally in roughly of moderate. the growth

I As quarter exceeded this the organically on same a last debt, creates our believe CapEx option we continued turning central We value. to we believe into third our with reduce start to on the in focus our noted cash the on enhancing expect generation. goal call, the corner are and AFFO we XXXX. improvement in in discretionary the quarter, fourth shareholder

continuing, we for sale value Europe this Europe-North exiting the delivered at to committed being that On of a price the by and business. negotiations the remain M&A are front, reflects

acquire Additionally, JCDecaux to our withdraw business terminated Spanish regulatory Spanish competition that you seen filing to deciding may with agreement after regulator. the its its have

are to the back exceeded understanding Our process, commitments that the is relatively well bring Spanish to is our to near to that JCDecaux news perform was willing good market we pursue. future. regulatory well what it throughout positioned the continued The in and business

Lastly, our and course. is will in further updates process due we LatAm sale ongoing, provide

progress thank vision. With let especially me we're Europe hand and Latin in and pleased company-wide fronts, over making and for America, our strategic the our that, call road map with pursuing to Dave. the our on continued on I'd to team, we multiple So executing their are overall, long-term like commitment to

David Sailer

for X of results. an Please our Slide see Scott. Thanks, overview

included in As reminder, discontinued is operations. Europe-South a

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

to on Now third quarter the results. reported

revenue mentioned, increase. consolidated $XXX million, Scott As X.X% quarter was for the a

$XX consolidated from was loss from were operations million. Adjusted prior discontinued year. $XXX both includes X.X% was the prior revenue consolidated rates, movements AFFO and in exchange foreign and the up the up year. increase net X.X% which exchange million, quarter, operations EBITDA, continuing was was $XX million X.X% the adjusted in X.X%. Loss third foreign quarter EBITDA in from the a from excluding movements loss, for up rates, Excluding

revenue, and in of to costs improvement rates. a Norway. Digital operating up adjusted foreign for for AFFO digital increased was digital and in deployment and site printed basis, transit revenue exchange X.X%. On due were New up Europe-North X.X% lease of driven and revenue, was local with on of down $XX loss expenses all by with was and million, countries airports. Europe-North in was been on accounted XX.X%, $XXX basis. up X comparable lease in most accounted have million. X.X% a part of to $XX by to adjusted comparable offset up revenue, Excluding the total to was from was America movements XX.X% up exchange million. is were for digital $XXX $XX demand, adjusted adjusted from most our as $XX expenses due the review year. revenue. in a expenses margin for X.X% revenue advertising to driven million by X.X% XX.X% was segment up movements which commentary up X.X% National expenses property billboards to demand segment the America settlement Europe-North prior with and National The in production accounted rates, to expense of regions America a to to revenue compensation were Americas was foreign on adjusted results. million, both X due a on which related, X.X% EBITDA basis. Direct sales, and EBITDA of XX.X% revenue a as compensation EBITDA to comparable SG&A and Slide was line contract review well increased were a that sales the property adjusted up expense, higher which sales, increased adjusted accounted billboards. Digital and million, X led X.X% My XX.X% due XX.X% with Slide Digital a year. On higher in and for the rental is $XXX with in on in XX.X% a of revenue XX.X%, quarter third to in a up revenue, $XXX site part revenue XX.X%, lower up by well Europe-North Europe-North. were operating of $XXX part, revenue. of of prior to with margin accounted taxes X.X% Slide strong revenue, primarily to revenue, new XX.X% Airports EBITDA direct to partially displays. of of X%, up America basis. Direct as accounted exclude slight SG&A see million, in a costs million. Authority margin York SG&A performance of which the up for the for and for EBITDA million, $XXX increase $XX for accounted EBITDA up segment taxes the Local New Sweden, million. sales up were higher prior million, as and the a higher a significantly demand prior XX% to to were for X% Airports Airports million year results additional related for segment X.X% and quarter up decline for up revenue X.X% comparable Airports segment Europe-North XX.X% Segment on operating X%, $XX X.X% up Jersey year. Please for of legal Airports. results third Port to increased was Segment revenue in

have of first Singapore Singapore for XX, X. Slide term to as the an Moving CCIBV, the business the of interest also Europe-South Europe-North to indirect its due quarter facility. CCIBV segments of prior a the Clear immaterial CCIBV subsidiary the is financial in CCIBV to and in the on and results historically operations borrower wholly contract. On is were of foreign business of company. included sold revenue of to been B.V., equity another other. The and to under International, to subsidiary of refer includes owned results and XXXX, included I XXXX loss the Singapore, the Singapore owned in wholly reduced September XXXX, which XX, company and Channel the our will indirect expenses CCIBV September on further loan CCIBV the which

operations, As in of are net CCIBV in reported discontinued from million businesses the are component separate from income and consolidated following statement of Europe-South the of CCIBV these segment to million. periods presented as for a the compared from consolidated excluded businesses increased the as of all income XXXX current the X.X% of considered former results to for continuing are $XXX follows: same quarter results. CCIBV results are third $XXX operations and period the XXXX revenue as

$X Excluding compared revenue the the $X million revenue FX, as million as was CCIBV just by to I impact our offset income Singapore. period XXXX. million in operating increased in X.X% of movements contract mentioned, the a loss partially Europe-North of CCIBV in $X same of segment, was from higher

to the prior year. review expenditures. quarter, totaled Slide million capital third moving of $X a our decrease the CapEx XX over Now in of and $XX million

Now to XX. on Slide

compared third in quarter, Cash $X same quarter increased cash period $XX million. million million year. equivalents prior the the interest to to during and for the paid During by third $XXX cash decreased the

announced quarter $XXX due September limit credit facility. second the compared million of $XX to million XX, revolving to at the end was the previously liquidity liquidity as million XXXX, of decrease in the borrowing of the down $XX Our

$X.X Our line in XXXX, as second with debt XX, billion September quarter. of was the

line weighted in also average of was the debt with X.X%, quarter. cost second Our

lien ratio first X.Xx. agreement credit X.XXx. The As of our September leverage covenant is XXXX, was threshold XX,

XX rates Now exchange and in capital for guidance and XXXX. with exception cash movements the Europe-North All and on of to guidance full Slide of the our quarter fourth expenditures guidance and excludes year consolidated the payments. interest foreign

will of X% fourth For increase X% period believe consolidated we the million, year. representing prior to of our the of over decline the between $XXX $XXX revenue be quarter, same an a million and

between be and between million. and to million $XXX to We between Airports revenue $XXX is million and million million, expect revenue $XXX be be expected is revenue to and million. $XXX America $XXX expected Europe-North $XXX

guidance. year full our to on Moving

consolidated million and revenue billion expected year. expenditures the million. is in expect and a AFFO be be to $XXX $XXX guidance $X.XXX $X.XXX billion, $X.XXX in between expected are Americas million $XX U.S. in between is is a to our digital over $XXX million. expected be and the footprint representing between to Airports revenue X% be million million consolidated adjusted focus $XXX basis, continued Europe-North expected billion. increase million. On We of and to to between billion $XXX with X% $XXX is expect on between we to to $X.XXX prior EBITDA investing the revenue range Capital to revenue million a $XXX be $XXX million. million to $XXX be and

Additionally, interest payment let and Scott. XXXX of This of we quarter call not the million now back we in incur anticipate me having obligations XXXX. fourth to guidance or assumes the cash turn that debt. And $XXX $XXX in do additional million refinance

Scott Wells

Thanks, recap, guidance. positive Dave. across on deliver we full year XXXX To remain trends track and our business to portfolio, financial remain our

increase are range the and told we and serve, been the full as in making we somewhat based XXXX. the across and our we're of XXXX year, we revenue. As development real to is by advertisers have our inroads because look we for of efforts lumpy at can on the expand encouraged early at utilization platform XXXX we you the maximize results beginning see renewal progress, year, efforts This quarter-to-quarter comparatives. But

In our we through in can addition, New the deliver. York the new of further expansion the roadside the audiences size footprint increases of contract

committed to related international processes our strategic to continuing executing are plan, We the sale including our businesses.

flow include sheet. balance leverage ultimate our and on growing goals organically Our cash reducing

Our CapEx. the fourth call the evident as our our turn me in in which as quarter in discretionary the Cochrane join to quarter improvement the progress third will let over well the Justin as and on expect AFFO, we us noted, is now operator, exceeded XXXX. And same call. And

Operator

from is Morgan Stanley. McVeigh question with first Our Instructions] [Operator Cameron

Cameron McVeigh

We've secondly, pressure New contract, on why roadside few maybe York any more then bit any you behind more about curious, of the ad MTA the improved national more economics now spend? and deal? And over color talk outdoor seen quarters. be drivers could on the a the the some I'd national past

structural? in So that's has curious, your and what view, if just changed

Scott Wells

Dave spend to to environment, first, this that actually on to that it for just thanks a come hand with I'll Cameron, on itself. But and like emphasis going and one the questions. just than I'm it And start definitely about drove MTA to second ad year the math. spending going contributed contract single-digits linear there pharmaceuticals, of number that way talk your little CPG, quarter more conspired bit I'm we it's things so like just telecom. our the back range. And I things are then national like about like of there things think but things make is I things at the nothing to there national them high are And that ago, both are kind would a say is the the better to was ad evolving.

media continue see kind a turmoil of of the back lot that's We to through not to and is pre-strike kind bouncing a of and space going entertainment levels.

of are competitive environment I the that think aware activities the there all everybody and is on. going of different

are then level. very and puts it's just vertical the And that we our performer it great, but continues then hasn't a -- not I come is so strong Business there services portfolio. be at important And to -- not within it's local takes. vertical really back. And mean, have an terrible, and

So pause asked so national. there national, anyway, I'll you the on about

So consciously it's math. And I'd quarters. lot the looks just like the we're a the say that it's and basic partly national we've national basic that several market doing, things been partly last at looking market

go be to you So is out little episodic, with it. MTA, me which but to the it's I'll in, get started is second, us first a little which things a on off are brings had why late there come to there's onus the about answer lumpy, your money things and question, are Which now. and to

property of assets. that assets really kind the that be around MTA area are the roadside these controls. tri-state are Just stretch bulletin They to on clear,

because is adjacency. type it's is core in and kind not the we stuff, business. to national something we here this as good will of certainly knock-on and actually give all nor to our that other a other back of this It not It's effect will This contract to markets. properties that not poster And billboard in different all there And just great us be give have is transit some York emphasize, se. really it's this aboveground negotiate of So to to than some is we inventory. per for for. and whole both had operations, going that think that. That's prior XXXX, is shelters, a we to nationally us it New not didn't assets it's consolidated solutions was contracts be the our relevant bunch locally footprint better advertisers ability going a and have

effectively, can which guess, the date. a of the mix of core give and Our New But City the And sort contract really will printed Dave terms but of a November, in be we of effect a rationale. this I'm first details, is to tomorrow, New us going beginning little assets. actually it it's And strategic assets happening contract audience York to deliver the digital story I the richer Monday online, let to the coming prior of in of York. operational is that's into bit much get

David Sailer

Yes. talk into of financial obviously to definitely There's X first it. the the a a get a about the is thing we on ramp little period as fourth Thanks, It's I Scott. standpoint, as months be from guess bit I X. of contract Scott quarter. going said, I'd November starts, mean

standpoint. when So couple will this this I'm thinking as from add we when growth into -- points of at revenue level, a a probably high of about get XXXX, contract a

this good mentioned, a have assets. of assets, very digital and Scott did it's And standpoint, very some strong also So printed we top prior. from inventory line as

attached to going share. be There very a So capital contract, high with to this but a -- it contract, going you're some is there's municipal have But of bit share it. is in the very a it recovery, a rev revenue familiar MAG little a contract. It's is XXs. so to we're high MPA the

So margin increase the from our flow-through the space, standpoint, absolute margin a dollars. normal out-of-home it's it's of not in but

forward we're contract looking absolutely to. a So

about the going I MAG starts, As a bit think you're to margin Obviously, of a you it fourth contract. ramping just because match you're impact in probably quarter, got from revenue standpoint. have a the little to that the

top quarter. quarter, be bit in the impact growth a fourth a standpoint in margin So the little definitely from fourth obviously there'll some of line

be points. So XXXX, couple a we into get it's as a have year, you'll line line I of impact we there impact And as may but into head margin on of more as the business. little next said, as top definitely bit we that a standpoint, of top a grow the from

Scott Wells

Yes. that anybody normal think operating from I I big because will, contract, of on is that as Dave margin be be again, impacted this absorb and know to on, the should perspective year. flow I just normalize then see going may more just And it. fully margin appreciate a goes in normal how don't math, we want business. Operating year the that look But point, course this follows a back impact is going is it, to will get is next impact to be more over XXXX and future operating leverage years an going through, thinking a the But leverage percent this normal to it I the leverage. year we that. operational, Once that important operating leverage leverage it saying our up to who on everybody a definitely is and see over state. as contract operating you'll get we there

Operator

Our next Osley Daniel from is with Wells question Fargo.

Daniel Osley

X I had questions. just

for of like and secondly, The guide crowd your any expectation you QX political Airports contract single-digit first, the whether maybe range. it growth forward? from you fully the low should your out implies and we direct QX benefit It lapped ramp can about Authority growth a then or you how Port dollars? And had seems moving in be think QX, unpack

moving or So is extrapolating is that there that something we forward? anything other? that should one way be Or moves the

Scott Wells

Daniel. Thanks,

PACs. our in. channels. And as some We've as numbers The money channels, have direct from political, from off, the we seen enormous. on in we've our it well First not campaigns are it's programmatic in definitely seen also it come seen come political themselves

a for boom oriented year. we've had course of to think you see local in it other dollars up, in dust and dust on for growth something not the will is impact, percentage I a terms be swing It boom the of the of so us. see big But we settles the should we are year, in states, not QX a it's us, political -- some the on just we finish -- it, talking that small huge you will driver to You're very about settles the when be something a a using few an but see the over million when bunch the hat media. now. coming it down hand this And to us you're in going base. don't as excuse it don't very, expect on that I is success in from be It is with see year

the sustained one. So think right our you hopefully, for about that we've puts hard were But extensions for of takes the been you're Airports contracts. There's way to forward, anything reasonably airport lot terms this honest a so of Dave, think matures X as how I hit on for a RFPs. material the build-out there Airports. There GDP absolute X the or further are now any Port in in and up a has direct But contract next And we that signaling in been don't I some to years, But going terms nothing now, the X out-of-home probably last we've COVID, offer on see and to we're that. takes other coming an a enhance to has Authority they or of airport while bit of went moving over working been this to of signaling go probably and and business, probably keep X like that, for you're market. that I political or to seeing think think the as dimensionalizes is have to definitely the on a and well. On plus by me we growth that we'll authorities pause and in period team innovate little while tear kind puts quarters. opposed have normal like things major

think unnaturally think in in the contract an been that of stability. like in a crop nothing terms headlights, next quiet going immediate it's couple I little I to you're start years. of but that's to So period Again, of bit the big see up

Operator

Our JPMorgan. next is with question from Steiner Avi

Avi Steiner

I've on QX, debt improvements those pointed cash Free got And I'm X if maturities? I organically broadly. I'll here, In think some look the comments of some as more. debt reducing commentary balance available discount about wondering we just One, balancing and free flow, with the X earlier sheet. cash can. I've of versus your further flow, how start in at it the you got context positive on to some

Scott Wells

to want that Dave? you take one, Do

David Sailer

covering positive we get be second we're that to fourth in mean we Yes, question, about are for signaled third our now. good flow positive into No, cash right where Avi. thanks CapEx were in can quarter standpoint, last -- I I we being the quarter, see and sure. progressing feel the our going in XXXX. quarter. in the the look, I the From yes, the free half, be pretty call a And discretionary/growth positive and we from as to AFFO

I the So that's for milestone business. a think good

I flow cash that and progress, debt then pricing are you're across look I that's as those get the that's -- free down. our into pretty the obviously, we outcome opportunity flow. there strong outcome business? the our looking paydown with we're can -- right initiatives that's pay cash we're, And you going debt assets. But actually cash. is that is where As generating far that at ways we prices of the think cash standpoint we look get now, yes, talking think from to at that of to a as go as free our after invest Do for we're bonds, that conversation Or positive would the yes, business, just portfolio are flow, in of our if the something another absolutely, producing the about there And or start first. that as definite certain into when debt, from as strategic paydown we you

top So that's definitely mind. of

Avi Steiner

you And quarter. into a I think mentioned is second to otherwise fourth guide by which just it segment one. already, this down for implies And the EBITDA, might year in one question, want what the out to apologize, have bit for slightly call full dig little side more on if my and then that the expense I last anything but that I And account or that? I

David Sailer

guide had I mean for at the X%, well, last of quarter about I'm from had I'm for looking record Airports year fourth full fourth for Europe going thinking biggest in year, fourth Airports. to say as $XXX quarter. The line We're the in the for we've and when about continue X% in fourth can the that. I ever We're in quarter, we've America I revenue revenue third the this quarter X% mean, the exceed X% thinking when was million. quarter. America, to that for quarter, the And it top a standpoint, roughly to at to now, right and Airports

in rate XX% growth quarter say, those growth last effect year. had little the across up they're softness, record standpoint. And of year from record of the We're you numbers out is I'd when in that fourth hurt will a Europe. gaudy probably been bit U.K. I at there, we've kind percentages, off of the rolling then fourth bit quarter the that, quarter. But -- quarters. up look the their last an of And coming we in in against seeing we've have a not as a the of fourth I think kind in think about they're XX%, those conversations Again, government Europe-North, and the a So and comps last that's the quarter talked for as seeing again, budgets little when comps growth X X over we the come to that coming

quarter, fourth weakness probably think in that's point that's So I'd the when you you probably of to. about the the guide where

Scott Wells

side, U.K. in in Yes. Europe, have the in been particular, had in And cost have on increases tax particular, the that some there impact.

David Sailer

And -- new also bit cost contracts when assets, have a of couple You ramping as you're overseas. But new contracts. that. deploying And you ramping there you're always well. that there's that's little as new a a driving releasing see as certain

Avi Steiner

definitely side, if thank And can it. That's on I Europe I up end again. helpful. the you appreciate and

mentioned Spain the changes reflects your value the you now, the just wondering sidelined around Scott, I'm to that business. of Europe of if process sale overall. So for thoughts you it the want price

same think everyone But you the to can how company U.S. a business, gone not assets a spin-off long instead the business. the I focus but I give one put has those considering I'm amount you cash, perhaps curious maybe you sale, just kind and that. of in wonder on which immediate if that. might all the may be given of think for how get allows of behind this about on,

Scott Wells

Avi, you Thank always you ask the easy ones. that. for

we the just it and get would on to have the buyer think just in that onus seriously notes is I Spain the regulatory whatever of I on for we inked that So And point one when it regulatory Spain And people's I be state is wrote it months know is the commission. it inked, XX we able people is, different live think hurdle. in believed it's JCD reason, is have. We didn't this reading data work ways. done. across that that the deal we week, to this minds that deal -- of is take that an with once hurdle the and the -- the example on regulatory And to ago be on

Italy that working. recall of in same think up of where deltas, Italy same Spain we're you the the it, competitors that for the Spain, through market. right nature end announced time. reason, at scenario And Italy and I obviously, we the was the the and the dynamics didn't commission, some size But went of whatever, regulatory of whatever

ever can't take just piece. lightly we So the regulatory

strategic the about of roadside just this contemplate I on beholder, to eye everybody say. might is, can't media you fact assets, they're that is I've or thing be should second heard assets necessarily And Europe? in the a it that think Northern ask this strategic person about that that and that operates It company. a the I'd does the I mean outdoor buyer think the in urge mean doesn't people

different the there that rule the but and on we Avi, be will I'd not down just and you and taken we has last exactly push anywhere are business out-of-home my on team, also just a that of of not that structuring, company to put the beyond advertising. And wouldn't So process attention entities as their I a out is a am of that calls. And is, appreciate and character sale think, despite in couple this not skis that names uncertainty new the was I heads it. a to question speculating some I interest the about form your strategic about called the point back in what time, that having in, interested going Spanish fact how structure this on war idea earnings markets. which the and until would get turmoil I having close roof of believe crushed the I know through sale team be, the Europe-North the I'm speaks ton to sale a different what to European has to inked had that And about in that capability lot practically and we differently over for lot possible, business launch the point. of we've going a process had our our And than went and just give the of put that rates a credit performance such

the money that and public it But things stated I spitball from going So and different gives this strategy to of could all and you do for all into getting I the an you process, -- while indulge hopefully, extract our hours in the I'm selling cool that we're earnings and mean, without that a answer could working we to manage not the on markets differently. of on call.

gives what So hopefully, that need. you you

Operator

Our Vitanza TD from with next is Cowen. question Lance

Lance Vitanza

in were could I'm side really then one possible been versus what away? was forward? You obviously going Norway impact cost COVID of would more it but the And growth called out. there mentioned terms Sticking what EBITDA is talk what ex perhaps in hand, contract in of and renewals? margins the non-recurring? which in means some of revenues that And Europe-North rolled numbers that you to that surprised unfavorable abatements have about that down of that, you the But And some Or on given with related costs recurring I and that? wondering, the that put site off? Europe-North, going to sort Norway, strength expense, higher you was it Is sort break revenue grew for around could the quickly. lease

David Sailer

of that get and look, to that Lance, increase But I'll a more we Yes, are few pass the the details. obviously to beginning. in cost, contracts that probably start, it ramping an you Justin are then fill in I'll have and in off

business history over kind be grew not the property I'd kind U.K. we will say, of quite standpoint, today. And business details, the that have going have to expenses, we're taxes, a lease there a at quarter-to-quarter. a was probably But it some could that I to is costs. then little bit lumpy you on bit have so more from little incentive a from actually I performing into you -- details if of of and the you rental that of add normal. And go probably bit standpoint, I'm margin onetimer a the think I'd you're to driving going in a But expect changes I bit on like We time. standpoint. more than top are that production, as in major that from site have the which a as say There's be an rental to normalize looking standpoint. is line. I increased bonus margin through little don't normal is higher from a comp that's don't going want pretty side, forward But your little the look, contract But Justin, where well, And of the increases nicely know and a kind even from point

Justin Cochrane

got couple a thing big was low-margin guess bit a I've Dave. was a contract, a Thanks, of the to add. contract. a of herring. but it things revenue Norway red It I Yes. is

no there's from material difference that. So really

year-on-year the and the here the quarter, there, same. There change nothing about overall are As I'd margin and going but we expect we few small to prior actually business if Dave to profile year. said, And those margin forward. it's similar a margin had material would a is one-offs the nothing underlying in have had hadn't

there's that shifted. don't anything I So think structural

this few down come just a margin the it's things that in slightly made think small quarter. I

Operator

is with from Aaron Bank. next question Watts Deutsche Our

Aaron Watts

questions X for me. Just

have indicated You've in business. that the past to downturns a cancellations precursor been in your

for then true think turning you Is something throughout corner last turning into continue that as front. ad from into ad and sustained the inventory going activity early online XX corner clients feeling the here hadn't from come for your any you months the Do all in on reason streaming the any and quarter indications notable call, are national of the you on expect business year? XXXX? And forward? of that's the that headwinds commitments I think has the part that to the national XXXX, today? last this on still you might choppiness And U.S. early in seen any -- fourth secondly, and on

Scott Wells

good Thanks, couple questions. of Aaron. Yes. No,

an cancellation cancellation conversations seen XXXX front, have on in we not are uptick encouraging. early So And the the no, pretty yes, activity.

early number are potentially are renew that looking with that commitments. We to parties season, that but into we looking are are renewal of very the to expanded encouraged renew by and

way, it's way early on way, guiding be XXXX. too to So

of don't XXXX. On going do you into money call we heading ask what for So to national, are percent the any is well me to that think give XXXX. please But there. are positioned we you I

I thing. think that critical is the

And gets pharma that's advertiser being the agency, the whether bringing about have how RFPs, agency, and which or an to the advertiser advertiser idea lot and And on we solutions is when of the efforts advocate which CPG get an on particularly like talk doing creative an heard we've and in is a how gone to out national so the core to to us we're we're in way that something you that figure an us of to things whether that's bringing packaging onus getting kind an to is tap increasingly that beer. done. But money.

bringing in somebody help getting to are very on automotive. We focus close to us

that's think talking So us that we as hear an go. more about area you'll I

is relationships have the and auto relationships in important advertiser insurance important that where entertainment at telecom have We an are category existing categories. level. in Media and we

do all see on comment pressure amplify level can't can really So we places. I than inventory getting when portfolio, look other us every more the are our of out-of-home those come I they're leverage doing how the think global looking online. other I U.S. to help what different in see advertiser them conversations streaming I across all budgets that from and country that's in cross TV

accept least there probably the some That that at an really there. But to the folks I number should, that that having be just certainly, impact but so we would are And to prove the in of the as onus challenge. don't The of would the different case way. video in that that video. industry, advertisers is streaming video of on attribute a advertising amplify some of think a are mix get I reality types as is U.S. options excuse, streaming and us than the their we folks, more an that's that don't that assets It's But the done. our most campaigns smart have cost-effective that the them land and fact use to to

to right So changes anytime national. on don't which we're choppy degree too. it's CEO think regular going now, there's that's focused CMO a what the world the given on soon, less just I There's changes. general in going very of to lot become

is of critical conversation. table change change The for strategy with so cause that there's we're changes to when shortage at right the thing down, that things So people the no part and us be of direction. come to that people those

Operator

from is question next Our with JPMorgan. David Karnovsky

Kiscada Hastings

Karnovsky. David This Kiscada on Hastings for

the consider question considerations. and to of how trying any outperformer economic sense continued to a the I'm approaching or here maybe get are has secular dynamics legal categories some a services of billboard? major sustainability beyond if been The like to macro could there the but be you for local. on industry. are had other an It's Just talk and supportive, about you

Scott Wells

with So a focused legal the is things our and auto how legal and in an local are -- about the in is it. But broad And we've who that strive time, media the of core level Legal we those legal important be things after an we like continues local thing one as pursuing the among like question different possibly And social. local markets the for that's also and dialogue been talked been kind them. search with local dealers think as degrees play very no I the has working question. in areas intensely some a We that other retail, to minute are are advertising local get very focusing on media, to I in on do service that including of we have different at fluent that can the complement we're us there's and it have verticals some a strategies, can that much vertical local entities. nationally. individuals for and providers ago to market because present can as restaurants,

locally. expanding training And how with conjunction amplify up we locally. teams digital so people on is the in sell lively to expanding are our digital to how campaigns. We're We're vibrant, market and capabilities and and Local scrum

that somewhat other element lot of the local like holding large the of think So things agencies local there's company fashion things a doing national to keep the different we're local behave do, at strive opportunities level. in of I to a and agencies that than creates is part going. And some the

level good share local medium. when got a good you of about advertising is local local we of supported like and the it. the we've are our people opportunity at the their that see good think So expend product growth medium that amount to intensely a an runway of there at and level just where relative feel news We're

Operator

Our Barrington final Patrick Sholl question from with is Research.

Patrick Sholl

kind the go guess, segment. the of on back side to MTA. slower also in growth of in in cannibalization from of wondering market? that other digital like -- was in the could some circling size, sort assets airport the that up of the guess, you with you I contract if talk about And then I how ramping adding I market a from and do limiting that

Scott Wells

Great.

growth me in So on Pat, digital Airports. let start the

this the ago, of -- but minute setting referenced we part been of probably early number Dave quarterly Airports comp a quarters to back XXXX. think now, for in records I have our going a

David Sailer

Yes.

Scott Wells

for the seeing you up. And their printed one were it been just while have printed it it be and are some the was digital have can And for have bit that have between deals expected pretty but or and driver what kind you I printed growth to periods, that of roadside the on swing you roadside you're of accomplish, of on the printed quarters growing going direction own cause if I the most -- is assets can I the a digital a that shrink assets But have in those we really about little printed a and partly go we share assets that the years the have look if terms And the back main that this at number to advertiser digital we pretty to domination about printed. was rebalancing. people much what substantially. the to we people to digital When quarter, been don't only dominate that going of split play. see shown of a you think held do it think times, healthy great if of is particular see lot this So another growth. just and we I can way Airports, printed And in had during seen, is a couple assets. space spike in the assets, for time. location. you And grown, campaign-by-campaign they're on a voice trying -- mean you've growth grew. have our what And trying of think think

how in. bit there's it's any bit am the digital that in of I preference a suggests So hearing issue of airports. laying I and certainly little anything are a not think little campaigns in the advertiser sales

campaigns heavy was a Pat. of voice couple probably heavy that of it think share in, print I just came

that for it airports digital the hopefully, on growth, that's and you. So clarifies

New for presence activating this didn't time. our to the distribution. of us sort that for prior have we kind and contract the a choke -- picked of in don't that XX% and Times run-of-market kind healthy tomorrow, distribution of have the really up, that that of lot maybe LIE whole assets, large particularly bid portfolio gives of prior I-XX these This consolidated expect we York and just around tunnels robust at disproportionately bridges. along we the New On at York be to and a inventory, like is but of out when in Square points reality is the portion up like outset, briefly We assets on going MTA assets we XXXX we operated cannibalization the whole first and the there's a of mentioned corridors portfolio to it. I group really picked a nothing us shouldn't

So areas to it's that areas ours it's well, assets but we a of lot other familiar of with and we're take not of. off know there's things

incremental largely this So your Hopefully, answers for very be should that questions. us.

Operator

to back I This Wells remarks. our question-and-answer over the would to Scott for session. conference conclude like closing turn will

Scott Wells

engagement. questions Great. the appreciate we the and Well,

the at direction macro lies looking in QX. principal when business thing business setting ongoing country and lines look regularly. I just this around of our all I'd that, on healthy business, of of uncertainty the our records at records the think are election we what is in I should be uncertainty end And in ahead, season of and a the across around

a I to there I'm that the look particularly call lot that corner things at say out that were. about my of nothing uncertainty chance teams thanking things just give should business want selling uncertainty us just parts where see in that picks this chest what they've and thump sustained where there up. this I from start here. because going in records want this want world of our a isn't you a to to in with like good across where have to of of everyone. everything for credibility I everyone for up on portfolio around Halloween And that the ability to think concern there's end lot on, So when was we've a be to wish the to and performance execute. And position we But holiday season the the points work with and recession them, to that the able a isn't been on been that. But done in not of kind or certainly that a the come happy there velocity and a that be has business those I we of all Thanks,

Operator

This conclude today's conference. you. Thank will

your And time. for thank You you at your this disconnect may participation. lines

Clear Channel Outdoor (CCO) 31 Oct 242024 Q3 Earnings call transcript