OUTFRONT Media Inc. Q3 FY2024 earnings call

• Focused on U.S. Media segment results, which grew revenues and adjusted OIBDA. - U.S. Media expenses up just under 10 million or just over 3% year-over-year. - Q3 U.S. Media CapEx spend was $17.6 million including $5.5 million of maintenance expense. - Announced a $0.75 per share special dividend, with $0.30 per share in cash and $0.45 per share in common stock, and approved a reverse stock split to complete in January 2025. - Identified an accounting error related to non-controlling interest on the balance sheet involving historical consolidated joint ventures, which was not material to previously issued financial statements.

The U.S. Media segment was the focus. U.S. business revenues grew over 5% driven by billboard growth (4.8% increase) and transit growth (7.3% vs prior year). U.S. Media adjusted OIBDA grew just over 11%, combined U.S. Media and Corporate OIBDA was up 6%. Consolidated AFFO grew nearly 7% to $81 million. Billboard revenues were strongest in locally skewed markets like New Jersey, Texas, and Michigan. Transit revenue was driven by growth in all markets including the New York MTA. Local revenues in U.S. Media were the primary growth driver, up almost 7%, while national revenues improved from Q2 levels, up a little over 3%. Digital revenue in U.S. Media grew 10% in the quarter, representing over 32% of total revenues, with automated revenues comprising nearly 17% of total digital revenues.

• Estimated Q4 U.S. media revenue growth at around 3%, with billboard in the low single digits and transit growing high single digits led by the New York MTA. - Full year 2024 consolidated AFFO expected between $295 million and $300 million. - Expect to complete approximately $25 million of acquisitions this year.

• Impact of exiting the New York MTA billboard contract and Southeast storms on Q4 revenue. - Accounting error related to non-controlling interest treatment (though not material).

Q: Follow up on Q4 guide, size the impact of the MTA versus the storms in the Southeast.

A: Around 1.5% of growth from the MTA, with a small piece from the storms mentioned.

Q: Update on the MTA integration of programmatic ad tech capabilities.

A: 7% of Q3 revenue on the MTA came through automated channels, with live boards and urban panels hooked up, and mobile panels to be hooked up in coming months.

Q: Increased spend at Corporate and breakdown of one-time vs non-recurring.

A: Benefit plan is unfunded deferred comp with volatility based on market, professional fees for management consulting to improve asset performance, and comp adjustments related to closer accrual to targets.

Q: View on National vertical performance in Q4.

A: National was better in Q3 than previous quarters, and they expect it to be up in Q4.

Q: Impact of ridership on MTA rates and automated buying impact on pricing.

A: Ridership is below pre-COVID, but better product and programmatic channels with higher CPMs than direct sales help, with programmatic bringing in new advertisers and higher CPMs.