OUTFRONT Media Inc. Q4 FY2024 earnings call

Key Accomplishments in 2024 - Organic revenues (excluding Canadian business) up ~4% year-over-year. - Billboard revenues up 3% with higher static and digital; automated sales platforms grew from 14% to 20% of digital billboard revenues. - Transit revenues rebounded ~9% in 2024, with NY MTA up ~12%, driving transit adjusted OIBDA up nearly $20 million. - 2024 AFFO grew 11.5% ahead of guidance. - Closed sale of Canadian business for ~$300 million, reduced leverage to 4.7 times. ### Fourth Quarter 2024 - Organic revenues grew 3.9% slightly ahead of November guidance; OIBDA $155 million, AFFO $119 million. - Billboard grew 2%; Transit grew just over 9%; Other (digital equipment sales) grew by $1.4 million. - Billboard 2% top line growth driven by higher rates and occupancy; digital billboard up 4.7%, static slightly up, excluding impact of exited contract. - Transit 9% top line growth driven by 12% digital and 7% static revenues, with NY MTA up 13%. - Strong categories: technology, political, financial; weaker categories: CPG, health and medical, alcohol. - Combined digital revenue up almost 7% in quarter, digital revenue ~36% of total; total digital automated sales up over 40%, ~17% of total digital revenues. ### Financials - Billboard expenses: global expenses up <$2M, lease costs down ~$6M, posting maintenance up <$5M, SG&A up <$3M; adjusted OIBDA up nearly $6M, margin up 80 bps to 40.3%. - Transit expenses: up $1.4M, franchise expense up <$0.5M, posting maintenance up <$2M, SG&A down ~$1M; adjusted OIBDA up over $8M, segment profitable for full year. - 2025 CapEx expected ~$85M, ~$35M for maintenance including $10M to replace aging digital billboards. - Balance sheet: committed liquidity nearly $700M, net leverage 4.7 times, next maturity in late 2026. - Dividend: Board maintained $0.30 cash dividend; 2024 acquisitions ~$20M, bought 49% non-controlling interest in joint venture for ~$24M; 2025 deal activity expected similar to prior years.

Billboard grew 2%; Transit grew just over 9%; Other (principally digital equipment sales) grew by $1.4 million. Organic revenues grew 3.9%, with billboard contributing 2% to the growth, transit over 9%, and other $1.4 million. Digital billboard was up 4.7%, static billboard slightly up, transit revenue growth driven by 12% digital and 7% static, with MTA up 13%.

• Q1 2025: Expect revenues slightly up relative to last year; billboard flattish; transit up in mid-single digits. - Excludes Canada and includes headwind from exit of NY MTA billboard contract in 2024 Q4, creating ~2-point headwind to billboard growth and ~1.5-point headwind to total growth.

• Macro uncertainty in the environment, potentially impacting midsized business customers. - Impact of congestion pricing in New York City and ridership recovery challenges for transit contracts.

Q: Given the congestion tax in New York City and work-from-home push, are you seeing incremental interest among advertisers for the NY MTA contract?

A: Matt Siegel said the MTA was a driver of revenue growth and EBITDA in 2024, with revenue up ~12%, and it's off to a good start in Q1 2025, not directly linked to congestion pricing or work-from-home but due to sales force and focus.

Q: What was driving softer than expected local ad growth in Q4 and what's your outlook?

A: Jeremy Male said locally, they're lapping solid comps from 2023, macro uncertainty post-election impacting midsized customers, but see better pacing in second-half of 2025.

Q: Nick, update on CEO transition process?

A: Nick Brien said a Board subcommittee formed a formal search process, he's Interim CEO, and the search is underway with a leading recruitment firm, focusing on broad expertise for the company.