Q1 2025 OUTFRONT Media Inc Earnings Call

Karla: Hello everyone and welcome to the OUTFRONT Media first quarter 2025 earnings call. My name is Karla and I will be coordinating your call today. During the presentation you will have the opportunity to ask questions by pressing star followed by one on your telephone keypad. If you change your mind please press star followed by two.

Hello, everyone and welcome to the Altra media first quarter 'twenty 25 earnings call. My name is Carla and I will be coordinating your call today.

Steffen Besides: The presentation, you will have the opportunity to ask questions by pressing star followed by one on your telephone keypad. If you change your mind. Please press star followed by two Oh, no luxury I hand, you over to Steffen Besides to beget definitely. Please go ahead when you're ready.

Stephan Bisson: I would now like to hand you over to Stephan Bisson to begin. Stephan please go ahead when you're ready.

Stephan Bisson: Good afternoon, and thank you for joining our 2025 First Quarter Earnings Call. With me on the call today are Nick Brien and Matthew Siegel.

Speaker Change: Good afternoon, and thank you for joining our 2025 first quarter earnings call.

Speaker Change: With me on the call today are Nick Brian Matthew Siegel.

Stephan Bisson: After discussion of our financial results, we'll open the lines for a question and answer session. Our comments today will refer to the earnings release and slide presentation that you can find on the Investor Relations section of our website, outfront.com. After today's call is concluded, an audio archive replay will be available there as well.

Speaker Change: After a discussion of our financial results, we'll open the lines for a question and answer session.

Speaker Change: Our comments today will refer to the earnings release and slide presentation that you can find on the Investor Relations section of our website at <unk> Dot com.

Speaker Change: After today's call is concluded an audio archive replay will be available there as well.

Stephan Bisson: This conference call may include forward-looking statements. Relevant factors that could cause actual results to differ materially from these forward-looking statements are listed in our earnings materials and in our SEC files, including our 2024 Form 10-K as well as our Q1 2025 Form 10-Q, which we expect to file tomorrow.

Speaker Change: This conference call May include forward looking statements relevant factors that could cause actual results to differ materially from these forward looking statements are listed in our earnings materials and in our SEC filings.

Speaker Change: Including our 2024 Form 10-K, as well as our Q1 2025 Form 10-Q, which we expect to file tomorrow.

Stephan Bisson: We will refer to certain non-GAAP financial measures on this call. Any references to OEBDA made today will be on the Adjusted Basin. Reconciliations of OIDA and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release, and on our website, which also includes presentations of prior period reconciliations.

Speaker Change: We will refer to certain non-GAAP financial measures on this call.

Speaker Change: Any references to OIBDA made today will be on the adjusted basis.

Speaker Change: Reconciliations of OIBDA and other non-GAAP financial measures are in the appendix of the slide presentation. The earnings release and on our website, which also includes presentations with prior period reconciliations with.

Nick Brien: With that, let me turn the call over to. Thanks Stephan and good afternoon everyone. Before getting into the numbers I'd like to share some thoughts on my first few months in the executive role at OUTFRONT and some of the plans we have started to put into action. The biggest and most important thing I've learned since stepping in to lead OUTFRONT is that this company is built on extremely strong foundations to drive positive business outcomes for our clients. Over the past 10 weeks, I've talked with most major agency partners and the trade industry organizations, as well as met with many important advertisers and OUTFRONT employees across the U.S.

Dan: With that let me turn the call over to Dan.

Dan: Thanks, Stefan and good afternoon, everyone.

Dan: Before getting into the numbers I'd like to share some thoughts on my first few months and the executive well outflows and some of the plans we have started to put into action.

Dan: The biggest the most important thing I've learned is stepping into lead out front is that this company has built an extremely strong foundation to drive positive business outcomes for our clients.

Dan: Over the past 10 weeks I've talked with most agency major agency partners.

Dan: And the trade industry organizations as well as met with many important appetizers and upfront employees across the U S.

Nick Brien: Our continued growth, whether at a national, regional or local level, will be determined by our ability to innovate, build leading brands and drive sales for our customers.

Dan: Our continued growth whether the national regional or local level will be determined by our ability to innovate build leading brands and drive sales for our customers.

Nick Brien: To ensure that our company continues to strengthen our foundations, we are focusing as a management team on four strategic imperatives. First, we're focused on optimising our sales strategies and ways of working. Second, we continue to modernize our workflow and processes. Third, we're focused on driving new demand from non-out-of-home advertisers in high spending industry categories. Finally, we are demanding the highest standards of operational excellence across the organisation. As I mentioned on the last call, I remain convinced there is significant potential to unlock within the company, and we have started on a path to deliver on these objectives.

Dan: To ensure that our company continues to strengthen our foundation, we are focusing as a management team on four strategic imperatives.

Dan: First we are focused on optimizing our sales strategies and ways of working.

Dan: Second we continue to modernize our workflow and processes.

Dan: So we're focused on driving new demand.

Dan: Non out of home advertisers and high spending industry categories.

Dan: Finally, we are demanding the highest standards of operational excellence.

Dan: The organization.

Dan: As I mentioned on the last call I remain convinced there is significant potential to unlock within the company and we have started on a path to deliver on these objectives.

Nick Brien: Now turning to our quarter one results, the headline numbers of which you can see on slide three. Organic revenues grew slightly, broadly in line with our guidance that we provided in February, while OEBDAL was $64 million and ASFO was $24 million.

Dan: Now turning to our quarter one results the headline numbers of which you can see on slide three.

Dan: Organic revenues grew slightly or in line with our guidance that we provided in February.

While our EBITDA was $64 million and <unk> was $24 million.

Nick Brien: Slide 4 shows us segment results. billboard revenues, which includes a two percentage point headwind from the exit of a large, marginally profitable New York billboard contract late last year, were down 1%. Transit grew 2.6%, with strong growth and the New York MTA being offset by weakness at other franchises, particularly LA Bus. Other revenues, which now principally consist of low-margin digital equipment sales, grew by about $2 million.

Dan: Slide four shows our segment results.

Dan: <unk> revenues, which includes a two percentage point headwind from the exit of a large marginally profitable New York Billboard contract late last year.

Dan: Down nine 1%.

Dan: Transit grew two 6% with strong growth in the new MCA being offset by weakness in other franchises, particularly la buses.

Dan: Other revenues, which now principally consists of low margin digital equipment sales grew by about $2 million.

Nick Brien: Slide 5 shows our detailed billboard revenue. The 1% decline was primarily due to previously mentioned New York contract exit, the revenues and expenses of which are still included in our reported 2024 financial statement. Digital billboard revenues were up 5.4%, while static revenues were down about 3.5%. I'd like to quickly shout out the South, which was our strongest billboard region.

Dan: Slide five shows our detailed Billboard revenue.

Dan: The 1% decline was primarily due to previously mentioned New York contract exit the revenues and expenses of which are still included in our reported 2020 full financial statements.

Dan: Digital Billboard revenues were up five 4%, while static revenues were down about three 5%.

Dan: I'd like to quickly shout out the south.

Dan: Which was our strongest Billboard region.

Nick Brien: Slide 6 shows our detailed transit revenue. 3% top-line growth was driven by nearly 11% growth in our digital revenues, which were partially offset by a 3.4% decline in our static revenues. The New York MTA outpaced the Consolidated Transit Growth Rate, growing by about 10% during the quarter. On a consolidated revenue basis, our stronger categories during the quarter were Legal, Utilities and Financial. The weaker categories during the quarter were health and medical, government and political, and CPG.

Dan: Slide six shows our detailed transit revenue.

Dan: The 3% top line growth was driven by nearly 11% growth in our digital revenues, which were partially offset by a three 4% decline in our static revenues.

Dan: The New York MTA outpace the consolidated transit growth way growing by about 10% during the quarter.

Dan: On a consolidated revenue basis, our stronger categories during the quarter were legal utilities and financial.

Dan: The weaker categories during the quarter were health and medical government political and CPG.

Nick Brien: Pride 7 shows our combined digital revenue performance, which grew almost 7% in the quarter and represented nearly 33% of total organic revenues, up from about 31% last year. Programmatic and digital direct automated sales were up nearly 20% during the period and represented 16% of total digital revenues, up from 14.5% in the same period last year.

Dan: Slide seven shows our combined digital revenue performance, which grew almost 7% in the quarter and represented nearly 33% of total organic revenues up from about 31% last year.

Dan: Programmatic digital direct automated sales were up nearly 20% during the period and represented 16% of total digital revenues up from 14, 5% in the same period last year.

Nick Brien: The breakdown of local and national revenues can be seen on slide 8. Local was down 3% year-on-year during the quarter, with growth in New York City transit being more than offset by weakness in Billboard. National grew 4% during the first quarter, driven by improved creative efforts on advertising sales, specifically around the Super Bowl.

Dan: The breakdown of local and national revenues can be seen on slide eight.

Dan: Local was down 3% year on year during the quarter with growth in New York City transit being more than offset by weakness in Billboard.

Dan: National grew 4% during the first quarter driven by improved creative efforts on advertising, so specifically around the Super Bowl.

Nick Brien: Slide 9 shows our solid billboard yield growth, which was up about 2% year-on-year to over $2,600 per month. The drivers of this were digital yield growth and our continued digital conversions, increasing our percentage of inventory that is now digital. With only about 5% of our total billboard inventory digital and accelerated growth in automatic revenues that I described earlier, we see significant room for continued growth. Summing up, revenue, quarter one was broadly in line with our expectations, despite an uncertain economic climate.

Dan: Slide nine shows our solid Billboard yield growth, which was up about 2% year on year.

Dan: With $2600 per month.

Dan: The drivers of this with digital yield growth and our continued digital conversions.

Dan: We've seen a percentage of inventory that is now digitized.

Dan: With only about 5% of our total Billboard.

Dan: Inventory digital and accelerated growth in automatic revenues that I described earlier we.

Dan: We see significant room for continued growth.

Dan: Summing up revenue quarter, one was broadly in line with our expectations, Despite an uncertain economic climate.

Matthew Siegel: With that, let me now hand it over to Matt to review the rest of our financing. Thanks, Nick, and good afternoon, everybody. For a deeper dive into our financial statements, please turn to slide 10 for a more detailed look at our billboard expenses. In total, billboard expenses were down just over $5 million or 2.4% year over year. This decline includes an approximate 200 basis point impact from the exit of the large marginally profitable billboard contract late last year that Nick mentioned earlier. Zooming in on billboard lease costs, these were down over $6 million or about 6% due primarily to that billboard portfolio exit and also lower payments and revenue share leases.

Dan: With that let me now hand, it over to Matt to review the rest of our financials. Thanks, Nick and good afternoon everybody.

Matt: For a deeper dive into our financial statements. Please turn to slide 10 for a more detailed look at our Billboard expenses in.

Matt: Total Billboard expenses were down just over $5 million or two 4% year over year.

Matt: This decline includes an approximately 200 basis point impact from the exit of the large marginally profitable Billboard contract late last year that Nick mentioned earlier.

Matt: Zooming in on Billboard lease costs, these were down over $6 million or about 6% due primarily to that Billboard portfolio exit and also lower payments and revenue share weakness.

Matthew Siegel: Posting, maintenance and other expenses were down about a million dollars or 2.5% due to lower maintenance and utilities costs and lower posting and rotation costs, partially offset by higher compensation related expenses. SGA expenses rose about $2 million, or 3.2%, due to higher compensation-related expenses, including salaries and commissions, and a higher allowance for bad debt. This $5 million improvement in total billboard expenses combined with the small decline in billboard revenues Nick described earlier, led to billboard adjusted overhead of rising about $2 million or 2%. We are pleased to see billboard adjustment and limited margin increase again, this time by 100 basis points year-over-year to 31.9 percent, helped by recent portfolio management efforts.

Matt: Posting maintenance and other expenses were down about $1 million or two 5% due to lower maintenance and utilities costs and lower posting rotation costs.

Matt: Partially offset by higher compensation related expenses.

Matt: SG&A expenses rose about $2 million or three 2% due to higher compensation related expenses, including salaries and commissions and a higher allowance for bad debt.

Matt: This $5 million improvement in total Billboard expenses combined with a small decline in Billboard revenues. Nick described earlier went to Billboard adjusted OIBDA, rising about $2 million or 2%.

Matt: We are pleased to see Billboard adjusted OIBDA margin increased again this time by 100 basis points year over year to 31, 9% helped by recent portfolio management efforts.

Matthew Siegel: Before moving to transit, I'd like to talk about another Billboard portfolio we will be exiting in the middle of the second quarter. As we described last year, we are focusing on improving or exiting contracts with limited financial benefit to OUTFRONT and its shareholders. Consistent with that philosophy, we will be exiting another large but marginally profitable billboard contract, this one in Los Angeles. We expect this exit on its own will pose a 200 basis point run rate impact to billboard revenue growth until we lap it next year. Given this contract was only marginally profitable, we expect a very limited impact on adjusted or even up to the FFO.

Matt: Before moving to transit I'd like to talk about another Billboard portfolio, we will be exiting in the middle of the second quarter.

Matt: As we described last year, we are focusing on improving or exiting contracts with limited financial benefit to our front end and shareholders.

Matt: With that philosophy.

Matt: We'll be exiting another large but marginally profitable Billboard contracts. This one in Los Angeles.

Matt: We expect this exit.

Matt: So it will go.

Matt: 200 basis point run rate impact of Billboard revenue growth until we lap it next year.

Matt: Given this contract was only marginally profitable.

Matt: We expect a very limited impact on adjusted OIBDA.

Matthew Siegel: Now transit, transit on slide 11. In total, transit expenses were up almost a million dollars or 1% year over year. Transit franchise expense was flat as the annual inflation adjustment to the MAG for the MTA contract was offset by lower variable payments to other franchises. Hosting, maintenance, and other expenses were up half a million dollars, or about 3%, due primarily to higher maintenance and utilities costs. SGA expenses were up 2.4% primarily due to higher allowance for bad debt.

Matt: Now turning to trends on slide 11 in.

Matt: In total trains expenses were up almost $1 million or 1% year over year.

Matt: Transit franchise expense was flat as the annual inflation adjustment to the Meg for the MTA contract was offset by lower variable payments to other franchises.

Posting maintenance and other expenses were up half a million dollars or about 3% due primarily to higher maintenance and utilities cost.

Matt: SG&A expenses were up two 4%, primarily due to a higher allowance for bad debt.

Matthew Siegel: The 1% increase in total transit expenses combined with the nearly 3% transit revenue growth described earlier with the transit adjusted order improving by about a million dollars during the quarter. Since we still expect full-year revenue to result in us paying the MAG in New York, we've straight-lined our minimum guarantee payments throughout the year. And given the seasonal nature of our revenue, this leads to the unevenness of our transit orbiter. We continue to expect that full year transit orbiter will be positive.

Matt: The 1% increase in total transit expenses combined with the nearly 3% transit revenue growth described earlier with the trend in adjusted OIBDA, improving by about $1 million during the quarter.

Matt: Since we still expect full year revenue to result in us paying the Mag in New York.

Matt: Straight line, our minimum guarantee payments throughout the year.

Matt: And given the seasonal nature of our revenue this leads to the unevenness of our trains in OIBDA.

Matt: We continue to expect the full year trends in OIBDA will be positive.

Matthew Siegel: So I-12 shows the company's combined billboard, transit, and corporate address in the first quarter. We consider this an important measure, given these represent essentially the entire company.

Matt: Slide 12 shows the company's combined Billboard Transit and corporate adjusted OIBDA in the first quarter.

Matt: We consider this an important measure given these represented essentially the entire company.

Matthew Siegel: Corporate expense rose by about $5 million, nearly entirely due to management severance payments and executive search. Combined with the billboard entrances OIBDA had covered earlier, consolidated adjusted OIBDA totaled about $64 million, a 3% decline versus the prior year. I excluded the $5 million of severance costs and executive search fees I just noted. I just had ordered, but it would have been up a few million dollars.

Matt: Corporate expense rose by about $5 million.

Matt: Entirely due to management severance payments and executive search fees.

Matt: With the Billboard and transit the OIBDA I covered earlier consolidated adjusted OIBDA totaled about $64 million, a 3% decline versus the prior year.

Matt: That excluded a $5 billion of severance costs and executive search fees I just noted.

Matt: Adjusted OIBDA would have been up a few million dollars.

Matthew Siegel: Along with recent management changes, we are looking for additional ways to be more cost efficient as an organization.

Matt: Along with recent management changes, we're looking for additional ways to be more cost efficient as an organization.

Matthew Siegel: Turn to campus pages on slide 13. Q1 CapEx spending was $17 million including about $6 million of maintenance. 2025. We still expect to spend approximately $85 million of CapEx, and also still expect $35 million of this total for maintenance.

Matt: Turning to capital expenditures on slide 13.

Matt: Q1, Capex spend was $17 million, including about $6 million of maintenance spend.

Matt: For 2025.

Matt: We still expect to spend approximately $85 million of Capex and also still expect $35 million of this total for maintenance.

Matthew Siegel: Looking at AFFO on slide 14. You can see the bridge to our Q1 AFFO of $24 million. The improvement is principally driven by higher billboard and trend debt OIBRA and lower interest expense caused by lower debt balance following the sale of our Canadian business.

Matt: Looking at <unk> on Slide 14, you can.

Matt: Can see the bridge towards Q1 <unk> of $24 million.

Matt: The improvement is principally driven by higher Billboard and transit OIBDA and lower interest expense caused by lower debt balance following the sale of our Canadian business.

Matthew Siegel: These benefits were partially offset by a higher corporate expense, much of which was due to unusual items such as...

Matt: These benefits were partially offset by higher corporate expense much of which was due to unusual items such as severance.

Matthew Siegel: For the full year, while the economic environment remains uncertain, we are not seeing any, we're not seeing cancellations or other indications that a recession is likely and continue to expect reported 2025 consolidated AFFO will grow in the mid-single-digit range.

Matt: For the full year, while the economic environment remains uncertain, we are not seeing any.

Matt: Not seeing cancellations or other indications that a recession is likely to continue to expect reported 2025 consolidated <unk> will grow in the mid single digit range.

Matthew Siegel: Please turn to slide 15 for an update on our balance sheet. Community liquidity is over $600 million, including about $30 million of cash, around $500 million available via our revolver, and $100 million available via our accounts receivable securitization facility. As of December 31st, our total net leverage was 4.8 times, within a 4 to 5 times target range.

Matt: Please turn to slide 15 for an update on our balance sheet.

Matt: Committed liquidity at over $600 million, including about $30 million of cash around $500 million available by our revolver and $100 million available by our accounts receivable securitization facility.

Matt: As of December 31, our total net leverage was four eight times within a four to five times target range.

Matthew Siegel: Our next maturity is a $400 million term loan in late 2026. And we intend to refinance that later this year.

Our next maturity is $400 million term loan in late 2026 and.

Matt: And we intend to refinance that later this year.

Matthew Siegel: Turning to our dividend, we announced today that our Board of Directors maintained a $0.30 cash dividend payable on June 30th to shareholders of record at the close of business on June 6th.

Matt: Turning to our dividend.

Matt: We announced today that our board of directors maintained at 30, <unk> cash dividend payable on June 30 to shareholders of record at the close of business on June 6th.

Matthew Siegel: We spent approximately $6 million on acquisitions during the quarter and looking at our current acquisition pipeline, we continue to expect our 2025 deal activity to be focused on opportunistic tuck-ins and remain at a similar level to those seen in the last couple of years.

Matt: We spent approximately $6 million on acquisitions during the quarter and looking at our current acquisition pipeline. We continue to expect our 2025 deal activity to be focused on opportunistic tuck ins and remain at a similar level to those in the last couple of years.

Nick Brien: With that, let me turn the call back over to Nick.

Nick: With that let me turn the call back over to Nick.

Nick Brien: Thank you, Matt. While significant uncertainty has been ejected into the market because of the fluctuating economic policy announcements, from where we sit today, we expect that second quarter revenues will look similar to the first quarter, perhaps a bit better, with billboards flattish. Slightly down and transit up low to mid-single digit. Notably, our quarter 2 guidance includes the revenue headwinds created by the exits of two large billboard contracts. But as Matt just noted, these exits will have little to no impact on a OEBDTA or AFFO. Encouragingly, the top line in the second half is currently placing better than the first.

Nick: Thank you Matt.

Speaker Change: While significant uncertainty has been injected into the market because of the fluctuating economic policy announcements on where we sit today, we expect that second quarter revenues will look similar to the first quarter, perhaps a bit better with billable flattish to slightly down in transit up low.

Speaker Change: To mid single digits, notably our quarter two guidance includes the revenue headwinds created by the exits of two large <unk> contracts.

Speaker Change: Matt just to note. These exits will have little to no impact on our OIBDA.

Speaker Change: No.

Speaker Change: And culturally the top line in the second half is currently pacing better than the first.

Nick Brien: To close, I'd like to share some of the comments I recently made at the OAAA conference earlier this week in Boston. Today's marketing industry prioritises digital media for measurable performance outcomes. This demands that we accelerate our digital-first strategy to enable first-party data integration, leverage our partnerships with the leading ad tech platforms to deliver dynamic content to target custom audience segments in the most efficient way possible.

Speaker Change: To close I'd like to share some of the comments I've recently made at the <unk> Conference earlier this week in Boston.

Speaker Change: Today's marked an industry <unk> digital media for measurable performance outcomes.

Speaker Change: This demands that we accelerate our digital first strategy to enable first party data integrations leverage our partnerships with the leading AD tech platforms to deliver dynamic content to <unk>.

Speaker Change: Custom audience segments, and the most efficient way possible.

Nick Brien: This campaign activation strategy will ensure that we deliver the most effective digital out-of-home campaigns with a proven ROI advertisers are demanding. which in turn will allow the entire out-of-home industry to fortify its position in an increasingly digital advertising future.

Speaker Change: This campaign activation strategy will ensure that we deliver the most effective digital out of home campaigns with a proven ROI appetizers are demanding.

Speaker Change: In turn will allow the entire out of home industry to fortify our position in an increasingly digital advertising future.

Operator: With that operator, let's now open up the lines for questions. Sure, we will now begin the question and answer session. If you'd like to ask a question, please press star followed by one on the telephone keypad.

Speaker Change: With that operator.

Speaker Change: Let's now open up the lines for questions.

Speaker Change: Sure. We will now begin the question and answer session if you'd like to ask a question. Please press star followed by one on the telephone keypad. If you change your mind. Please press star followed by T.

Operator: If you change your mind, please press star followed by. When preparing to ask your question, please ensure your device is unmuted locally. We will make a quick pause here for the questions to be.

Speaker Change: Preparing to ask a question. Please ensure your devices on mute locally.

Speaker Change: I'll make a quick pause here. So the question is to be registered.

Daniel Osley: And our first question comes from the line of Daniel Osley with Wells Fargo. Thanks.

Danielle: And our first question comes from the line of Danielle <unk>.

Speaker Change: Wells Fargo.

Nick Brien: Given the broader concerns on the macro, can you give us a general sense of what percentage of your ad categories are goods versus services? And then also, you know, in the current environment, would you expect local or national advertisers to be more resilient? I think this is the second quarter in a row where local is underperforming. I think when, thank you Daniel, the question is one that we've been asking our sales organization on a very frequent basis that we're looking at it nationally, regionally and locally, and when it comes to the tariff and the implications of what that is representing either in cuts or postponement, we've actually seen it in really in the range of postponements and we've seen that with automotive, some government and political, a brief amount of fashion and retail and tourism and CPG.

Speaker Change: Thanks.

Speaker Change: Given the broader concerns on the macro can you give us a general sense of what percentage of your AD categories, our goods versus services and then also in the current environment would you expect local and national advertisers to be more resilient I think in the second quarter in a row, where local with underperformed. Thank you.

Speaker Change: I think when.

Speaker Change: Thank you Daniel.

Speaker Change: The question is one that we've been asking all sales organization.

Speaker Change: Every frequent basis that we're looking at it nationally regionally and locally and when it comes to the Paris.

Speaker Change: Patients have what banners, representing either Encapsule postponement.

Speaker Change: Actually seen it in really anywhere in the range of postponed and we've seen that with automotive.

Speaker Change: Some government and political reefer.

Speaker Change: A brief amount of fashion and retail and.

Nick Brien: They have not had any significant reductions and we're mostly services, so I hope that gives you a sense of our book.

Speaker Change: Tourism of CPG.

Speaker Change: Have not had any significant reductions in women mostly services.

Speaker Change: So I hope that gives you a sense of our book.

Daniel Osley: That's helpful.

Speaker Change: That's helpful.

Cameron McVeigh: And the next question comes from Cameron McVeigh with Morgan. Hi, thanks. I noticed a picture of your billboards in LA on the first slide of the deck. And curious, you know, any more color on how spend in LA? Particular media and entertainment related spend is trending. I was curious if the exit of the L.A. contract is related to the fire.

Cameron: The next question comes from Cameron <unk> with Morgan Stanley.

Cameron: Hi, Thanks, I noticed a picture of your billboards in La on the first flight of the deck and curious any more color on outside of la and and in particular in media and entertainment related spend is trending.

Cameron: I was curious if the exit of the la contracts is related to the fire.

Nick Brien: I think, Cameron, thank you for the question. Clearly, entertainment, the media and entertainment category is extremely important for us in L.A. And as Matt outlined on our last call, we're going to ensure that we're as creative and innovative as we can about representing the broadest range of our inventory, whether it be transit, static or digital, to ensure we satisfy the best opportunities. This is what we are. not going to continue doing is to ensure that because of one individual category we're going to be focused on leases and lease arrangements and contracts that we don't consider to be profitable over the longer term.

Cameron: Sure.

Cameron: I think Cameron. Thank you for the question clearly at the time in the media and entertainment category is extremely important fast in allied.

Cameron: And as Matt outlined on our last call.

Cameron: We're going to ensure that we have is creative and innovative as we can about representing the broadest range of our inventory whether it be transit static or digital to ensure we satisfy the.

Cameron: The best opportunities, what we all know.

Cameron: Not on a continued doing is to ensure that because of one individual category. We are going to be focused on leases and lease arrangements and contracts that we don't consider it to be profitable over the longer term. What we've also not seen is that this is an individual category is fire related.

Nick Brien: What we've also not seen is that this is an individual category, it's fire related. We've had a lot, I was just asking the LA team this, we've had a lot on the genre that have actually been more horror related for the last quarter. We've seen a very exciting quarter two of the slate that's looking very promising. So again, as an industry sector, it remains extremely important for us and one that we're going to service with the level of productivity as they have come to expect.

Cameron: We had.

Cameron: I was just asking the allied team. This we've had a lot on the genre that has actually been more hollow related for the last quarter, we've seen a very exciting quarter too.

Cameron: The slate is looking very promising so.

Cameron: Ken.

Speaker Change: As an industry sector. It remains extremely important to us and one that we're going to service with the <unk>.

Speaker Change: Level of productivity as they have come to expect.

Cameron McVeigh: Great, thank you.

Cameron McVeigh: And then, just secondly, curious the latest on the MTA contract, you know, where the MAG Thanks, Cam. It's Matt. On the MTA contract, the MEG went up this year from $150 million last year to $156, which represented a little over 3% New York CPI increase.

Speaker Change: Great. Thank you and then just secondly.

Speaker Change: Just curious the latest on the MTA contracts, where the Mag stands and if you've seen any impact from the New York City congestion pricing on transit growth so far.

Matt: Thanks, Tim it's Matt.

Matt: On the MTA contract.

Matt: Meg went up this year from $150 million last year to 156, which represented a little over 3%.

Matthew Siegel: It's hard to trace or see the benefit of congestion pricing or return to office or just New York City economic activity. But it's only the congestion pricing and scenes of credence. We're focusing more performance-wise on the MTA, so our teams are doing great. But I'm on the subway almost every day. You know, it seems a little more crowded to me and our metrics that we look at and get from the MTA seem to open, you know, higher, higher ridership.

Matt: New York CPI increase.

Matt: It's hard to kind of trace or see the benefit of.

Matt: Congestion pricing or returned to officer.

Matt: New York City economic activity.

Matt: But joined the congestion pricing.

Matt: Seems accretive.

Matt: We're focusing more performance wise on the MCA. So our teams are doing great.

Speaker Change: I'm on the subway almost everyday.

Matt: It seems a little more crowded to me.

Matt: And all of our metrics that we look at it you can get from the MTA seamless.

Matt: Higher the higher ridership.

Matt: And the return to work and then.

Operator: Page PAGE of NUMPAGES www.outfrontmedia.com Just as a reminder that if you'd like to ask a question, please press star followed by one on a telephone keypad.

I hope all the banks and we're also out there pushing people for five days a week.

Bob: It's helpful. Thanks, Bob.

Bob: Okay.

Bob: Just as a reminder, that if you'd like to ask a question. Please press star followed by one telephone keypad.

Patrick Sholl: We will now follow to the next question that comes from Patrick Sholl with Barrington. Hi, thank you. I'm just curious on the first two imperatives that you laid out for OUTFRONT's focus. I was just wondering if you could maybe talk about, you know, anything you could drill down into how we should, you know, think about, you know, potential cost savings or Operational efficiencies that you would you would look for in there.

Bob: We will now fall, let Judy next question that comes from Patrick Sholl with Barrington Research.

Bob: Alright, thank you.

Speaker Change: Curious on the first two imperatives that you laid out per tons for outcomes focus I was just wondering if you could maybe talk about.

Bob: Any.

Bob: If you could drill down into how we should think about potential cost savings or.

Bob: Operational efficiencies that you would you would look for in there.

Nick Brien: Thanks, Patrick, for the question. I aligned, you know, against the vision of these four strategic imperatives that have begun in earnest. You're talking specifically about, you know, the first two in terms of resetting sales strategies and ways of working. And to be clear, that's not about the efficiency. That's really about the demand engine and being very focused on our organizational structure and operating system to both drive revenues from existing clients whilst really pursuing the non-out-of-home advertisers that are significant in many industry categories today. The second strategic imperative is allowing us to review all of the costs that have been invested in the AI and the automation and the current existing tech stack, because we've said that we want to modernize our tech stack, whether it's to do with our order management system or our data integration, and we're going to continue to be as smart on our investments for our tech stack.

Speaker Change: Thanks, Patrick.

Speaker Change: For the question.

Speaker Change: Lined up against the vision for these four strategic imperatives.

Speaker Change: <unk> begun in earnest and you're talking specifically about.

Speaker Change: The first tranches, we set and sell strategies and ways of working on but to be clear thats not about the efficiencies that's really about the demand engine and being very focused on our organizational structure and operating system.

Speaker Change: Both drive.

Speaker Change: Revenues from existing clients, whilst really pursuing the non out of home appetizers that are significant in many industry counted at least today.

Speaker Change: Second strategic imperative is.

Speaker Change: <unk> is allowing us to review all of the costs that are being invested in.

Speaker Change: <unk> AI and the automation and the current existing tech stack, because we've said that we want to modernize our tech stack, whether it's to do with the order management system integrations, and we're going to continue to be as smart on our investments for a tech stack and critically that's about the programmatic platforms between.

Nick Brien: And critically, that's about the programmatic platforms between the SSPs and DSPs, as well as identifying those platform resellers that are becoming very active, very significant in the digital out-of-home marketplace. So where we're focusing and we're having the conversation that Matt mentioned earlier is about looking, ensuring we're focused on cost efficiencies throughout the business.

Speaker Change: The SSP DSP as well as identify those platform we sell it so they're becoming very very active very significant in the Ida and the digital out of home marketplace. So where we are focusing and we're having the conversation and Matt mentioned earlier is about looking ensuring we're focused on cost efficiency.

Nick Brien: These four strategic imperatives are about focus, a laser-like focus on what we believe to be the most important things that are going to drive the growth of the business and taking our attention or involvement away from the things that aren't. I hope that answers your question. Yes, yeah.

Speaker Change: Fees throughout the business.

Speaker Change: These four strategic imperatives, our about focus a laser like focus on what we believe to be the most important things that are going to drive the growth of the business and taking our attention or involvement away from the things at all.

Speaker Change: I hope that answers your question.

Nick Brien: And then on the Q2 expectations, you know, aside from the exited contracts, are you seeing any differences across geographies and on the revenue trends? The West has been a bit of a challenge for us, not just L.A., but obviously San Francisco is still recovering, so if anything, as Nick pointed out in his remarks, South and the Midwest are generally doing pretty well. In the East region, pointed out the MTA transit performance is doing very well, and that really carries the water for all of our transit segments. Nothing to draw conclusions about regions, just where we have our portfolios, some seem to do a little better these days, some are doing a little less better.

Speaker Change: Yes, yes.

Speaker Change: And then.

Speaker Change: On the Q2 expectations aside from the exited contracts are you.

Speaker Change: Seeing any differences.

Speaker Change: Differences across geographies.

Speaker Change: On the revenue trends.

Speaker Change: Hey, guys.

Speaker Change: The west has been a bit of a challenge for us not just la EBITDA.

Speaker Change: Obviously, San Francisco is still recovering.

Speaker Change: So if anything.

Speaker Change: Nick pointed out in his remarks.

Speaker Change: South and the Midwest are generally doing pretty well.

Speaker Change: In the east region points.

Speaker Change: Pointed out the MTA MTA transit performance, it's doing very well and that really carries a order for all of our transit segment.

Speaker Change: But.

Speaker Change: Nothing did draw conclusions about regions, where we have our portfolios some seem to do a little better. These based on we're doing little less better.

Patrick Sholl: Okay, thank you.

Speaker Change: Alright, thank you.

Operator: And just as a final reminder, if you'd like to ask a question, please press star followed by 1 on your telephone keypad.

Speaker Change: And just as a final reminder, if you'd like to ask a question. Please press star followed by one on your telephone keypad.

Nick Brien: And since we don't have any further questions in the queue, I will hand back over to Nick Brine for any closing remarks. Well thank you for joining us today. Certainly we hope to see and meet many of you at the various conferences and events as we head into the summer. But for those who we don't, we certainly look forward to presenting our quarter two results to you in early August.

Ryan: And since we don't have any further questions in the queue I will hand back over to Ryan for any closing remarks.

Ryan: Well. Thank you for joining us today, certainly we hope to see many of you at the various conferences and events as we head into the summer.

Ryan: But for those should we don't we certainly look forward to presenting our quarter two results to you in early August. Thank you for your thank you for your time today.

Nick Brien: Thank you for your time today. Thank you, everyone, for joining today's call.

Ryan: Yes.

Operator: This concludes the call. You may now disconnect. Have a great rest of your day.

Ryan: Thank you everyone for joining today's call. This concludes the call you may now disconnect have a great rest of your day.

Ryan: [music].

OUTFRONT Media Inc.: OUTFRONT Media Inc.

Ryan: Yes.

Ryan: Yes.

Ryan: Yeah.