Q2 2025 Clear Channel Outdoor Holdings Inc Earnings Call
Ink second quarter 2025 earnings conference call on webcast.
We ask that you please hold all questions until the completion of the formal remarks at which time you'll be given instructions for the question and answer session.
Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. It's now my pleasure to turn the call over to Alex Winkleman, vice president legal Alex, please go ahead.
Good morning, and thank you for joining our call.
on the call today are Scott Wells, our CEO and
CFO.
Will provide an overview of the second quarter 2025 operating performance of Clear Channel outdoor Holdings Inc. We recommend you download the second quarter 2025 earnings presentation, located in the financial information section of our investor relations website and review that presentation during this call.
After an introduction and a review of our results will open the line for questions.
Before we begin, I'd like to remind everyone that during this call, we may make 4 looking statements regarding the company, including statements, about its future, financial performance, and a strategic goals.
All forward-looking statements, involve risks and uncertainties and there can be no assurance that Management's expectations beliefs, or projections will be achieved or that actual results will not differ from expectations.
Please review the statements of risk contained in our earnings, press release and our filings with the SEC.
During today's call, we will also refer to certain measures that do not conform to generally accepted accounting principles.
We provide schedules, that reconcile these non-gaap measures with our reported results on a gap basis. As part of the earnings presentation,
when reviewing our earnings presentation, it is important to reiterate that all European and Latin American operations are reported as discontinued operations for all periods. Presented this includes our current businesses in Spain and Brazil as well as our former businesses in Mexico, chile, and Peru, which were sold on February 5th, 2025, and our former year of North segment, which was sold on March 31st 2025
The reported Consolidated results include the America and Airport. Segments in Singapore.
Also, please note that the information provided on this call, speaks only to Management's views as of today, August 5th, 2025 and may no longer be accurate at the time of a replay.
Please see, slide 4 in the earnings presentation and I will now turn the call over to Scott.
Good morning everyone. And thank you for taking the time to join us today.
During the second quarter, we delivered solid Financial results within our guidance range and continue to make good progress and executing on our strategic plan.
Our transition into a U.S.-focused organization has allowed us to direct our attention to maximizing ROI from our digital footprint. Data analytics, resources, and our sales force are being leveraged to scale our business and increase cash generation.
Our Outlook remains positive and we expect a good second, half of the year, a testing to the strength of out-of-home advertising, and our leadership and innovating, and driving, the digital transformation of our industry.
Turning to our results. On a Consolidated basis, we generated revenue of 402.8 million during the second quarter representing an increase of 7%.
Our America segment delivered records, second quarter revenue of 3033.1 million representing a year-over-year increase of 4.4% driven by strength and digital and local sales as well as the planned ramp up in the MTA roadside billboard contract. We saw growth across the majority of our markets with continued strength in San Francisco, as we benefit from the recovery, in the market and the surge in AI related Investments.
An airports delivered, a 15.6% increase in revenue for the second quarter uh record of 99.7 million a substantial gain compared to a strong performance in the prior year comparable period.
Categories, that continue to perform well across the company, include Business Services, technology Banking and insurance.
in addition to our financial results, we also took some important capital structure actions during Q2 and shortly after
extending both our cash flow revolver and asset back credit line to June 2030.
Refinancing approximately 40% of our debt maturities and 2 tranches of senior secured notes to 2031 and 2033 with our nearest maturity. Now in 2028
And continuing to buy back senior notes, thus far our BuyBacks were have reduced our annual interest by 17 and 1.5 million dollars, generating a yield of 12.4%.
Deeper on this, in his section.
now let me talk a bit more about the future and how we are continuing to leverage technology to make our medium more compelling to advertisers
We are now in the process of rolling out. Our in-flight insights campaign attribution solution.
We have been testing this technology for a couple of years. And we're now ready to arm our companywide Salesforce with this groundbreaking tool. The tool allows Brands to assess the impact of their out of home campaigns, while they are still alive with previously. Unavailable insights into audience visits in a privacy conscious way.
These insights allow customers to evaluate ways to optimize their out of home campaign performance to drive more store, traffic. As we expand access to the solution, we're finding that consumers, travel much farther than expected after seeing an out-of-home ADD.
This is key as it underscores the influence of our platform on much larger audiences. Well, beyond a specific geographic location.
In a world of declining search efficacy, we believe our physical presence is a distinct advantage.
A great example of this scale benefit is our progress with the Pharma category, where recent campaigns have been executed across a wide swath of our markets.
We are demonstrating success in reaching targeted audiences at scale, selling audiences more than locations. Our vertical sales force has been invaluable in this regard, as they leverage their relationships and sector knowledge to educate advertisers on the scope of our reach and impact.
So we've made substantial progress in developing what is now a very Dynamic addressable and measurable platform integrated with the broader digital advertising world.
This is demonstrated by the results of our recently, released 5-year study of data with market research leader Kenard, which demonstrated that out of home advertising outperformed, CTV and digital channels in key metrics such as ADD awareness brand favorability and purchase intent.
Among the positive findings out of home, delivers over a 13% lift in ad, awareness surpassing even linear TV, confirming it as a powerful solution for reaching audiences at scale.
The study validates, our Strategic investment in Innovation and attribution via platforms like CCO radar proof.
The position, our company is the industry's most measurement forward media partner.
As I noted, our business remains healthy entering the second half of the year, and we are reiterating the midpoint of our consolidated revenue and adjusted EBITDA guidance. For the year, we are confident, as we now have nearly 90% of our Q3 revenue guidance under contract, and our business pipeline remains solid. We call it a strong second half when we gave full-year guidance in February.
February and we are seeing that come in.
with regard to our remaining business sales, we still expect to close the sale of our business in Brazil, this year and the sale process for our business, in Spain is ongoing
As we complete these transactions, we are deep in the process of zero-based, budgeting, and will share details on that work at our investor day on September 9th.
Summing it up, we're feeling good about the remainder of the year and more importantly, the direction we're headed longer term as we confidently, execute on our plan and work to enhance shareholder value.
And with that, I'll hand the call over to Dave.
Thanks Scott.
Police these slides 5 for an overview of our results. The amounts, I referred to are for the second quarter of 2025 and the percent changes are second quarter 2025 compared to the second quarter of 2024. Unless otherwise noted
Consolidated revenue for the quarter was 402.8 million a 7% increase which was in line with our guidance income from continuing operations was 6.3 million.
Adjusted evida for the quarter was 128.6, million of 7.7%, driven in part by strong digital revenue and local sales performance across both segments.
Afo was 27.8 Million up 75.9%.
Within our expectations.
Onto slide 6 for the America segment. Second quarter results.
America Revenue was 303.1 Million.
Up 4.4% in line with Guidance, the increase was primarily driven by digital Revenue which was up 11.1% the MTA roadside billboard contract and continued Improvement in the San Francisco Bay Area.
Local sales were up 7.4% and national sales were down 1% on comparable basis. This is the 17th consecutive quarter. Local has grown year-over-year.
Slightly expense primarily related to the MTA contract.
Please see, slide 7 for a review of the second quarter results for airports.
I'm pleased to say airports have delivered another terrific quarter with revenue of 99.7 million up 15.6% outperforming our second quarter Guidance. The increase was driven by strong performance across both sales Channels with national sales of 15.4% and local sales up, 15.9% on a comparable basis.
Segment. Adjusted ibido was 24.3. Million up 27.6% with a segment adjusted ibida margin of 24.4% driven by Revenue growth.
Moving on to slide 8 capex total 12.8 million in the second quarter down. 21.4% driven by lower digital spend and less contractual spend on shelters.
Now want to slide 9, we ended the quarter with liquidity of 351 million which includes 139 million of cash and 212 million available under the revolvers.
This strong liquidity position, complements the various balance sheet initiatives. We have taken just prior to. And since our last earnings call,
With the proceeds from the sale of our International businesses and cash on hand, we prepaid the 375 million of CCI BV term loans and repurchase approximately 230 million aggregate, principal amount of outstanding senior notes in the open market.
At the end of the second quarter, we amended our revolving credit facilities to extend maturities through June 2030 and more recently. We completed a new senior secured notes offering investor interest in the offering was very strong. A testing to the underlying fundamentals of our business Outlook and access to the capital markets. These Collective efforts have secured our access to our credit facilities. Through mid 2030.
pushed approximately 40% of our debt maturities to 2031 and Beyond
Increased, our weighted average maturity from 3.2 years to 4.8 years.
And reduced their annualized, cash interest by 28 million.
Our work to strengthen and de-risk, our maturity profile is ongoing and we will continue to actively manage our balance sheet, with the goal of ensuring, we maintain flexibility while prioritizing debt reduction.
now, on to slide 10 and our guidance for the third quarter and the full year of 2025,
For the third quarter, we expect our Consolidated Revenue to be within 395 million to 410 million. Representing a 5% to 9% increase over the same period in the prior year.
We expect third quarter, America Revenue to be within 303 million to 313 million and airports, revenue is expected to be within 92 million to 97 million.
As Scott mentioned, we are again, confirming our midpoint for the Consolidated full year, Revenue guidance, and adjusted Eva that we provided in February.
We expect full-year AFFO to be within $75 million to $85 million, representing an increase of 28% to 45% over the prior year.
Following the prepayment of the CCI BV term loans. The second quarter purchases of senior notes and the recent refinancing we anticipate future annualized interests of approximately 390 million assuming no further Capital markets activity.
And now, let me turn the call back to Scott.
Thanks Dave.
As we wrap up, I'd like to thank our companywide team for their continued commitment and contributions as we build on our momentum, and pursue value creation for our investors.
Are more focused portfolio is giving us ever greater opportunities to connect with our Frontline and amplify the things that are working. Thank you.
To recap, we continue to make real progress executing on our strategic plan and our Outlook remains positive. We remain on track to deliver growth and Consolidated revenue and adjusted e. But done the year ahead along with significant compound growth in affo. Putting us in a strong position to pursue debt reduction to put a finer point on this. We expect afo to cover growth capex and also allow for excess cash available to pay down debt.
We also are starting to see some movement in the marketing environment as advertisers are, beginning to appreciate the value of our physical Assets, in a world, where search performance is degrading, and AI is changing the dynamic. In pure digital channels, it's still early innings in this shift, but we are going to drive our message about physical presence, married to digital insights hard in the months ahead.
Have been asking and now let me turn the call over to the operator.
Thank you.
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Our first question will come from Benjamin swinburne with Morgan Stanley.
You may now unmute your audio and ask your question.
Hey guys, can you hear me?
Yeah.
All right. This is Cameron McVey, um, just had a couple to start, you know, Scott as you continue to transition to a US focused business, just curious how you're thinking about the trade-off between between pain down debt, uh, versus investing internally in digital boards and more of your sales force. Uh, you know, what's what's the priority? And if you can do both at the same time and then secondly um yeah I wanted to
Ask about the current status of any future JV plans and other Partnerships to increase ebita, as I know that has come up in the past. Thanks.
I'm going to start on your first question and then see if Dave wants to to fill anything in um on it.
Um, since you directed it to me. But the the trade-off, I mean, this, this is in every business. A, a consideration, obviously 1, that's 10 times levered. Um, the paying down in debt has a, uh, a value that is, um, greater than a, a less levered company. Uh, but we are very mindful of continuing to invest in our, our asset base, continue to drive conversions. It's obviously 1 of the key underpinnings of our growth strategy. So, investing in Innovation for the sales force investing in, um, things that make us more effective, uh, investing in insights and research that, uh, that that led us. Um,
Tap new parts, uh, of of marketplace, new verticals, all of those things are things that we're going to do and as we get that growth, um, we will we will then use that to pay down to pay down debt. I mean, I think, I think 1 of the things that everyone needs to remember and I know many of our investors are acutely aware of this.
Is that at 4%? Um, you know, when you're not on boarding a big contract, but at 4%, you get some operating leverage at 6%. This is revenue growth. You get a lot of operating leverage. And so it is incredibly important for us to be driving, particularly the America part of the business for that 6% growth level. Um, not saying we're going to get that routinely not saying that, that's easy. Um, but that is incredibly important overall, because that operating Leverage is then, what gives you the affo that that ultimately lets you paid out of debt? See what else would you add to to that?
No, no, I think you have it covered. I mean, I don't look at it as trade-off. I I look at it as a balance and you have to do both and I want to be clear, you know, paying down to get it, it's an absolute priority. But what Scott mentioned is, we're absolutely knowing that it's in the business. We're going to invest in our digital, we have to grow the top line. And by investing in the Top Line, we'll be able to pay down debt. So to me, it goes hand in hand as opposed to a trade-off when I'm thinking of, you know paying down debt or assistance, you know, Investments great. And then on on the second part Tamara and I think we've done enough deal related question answering over the last 3 years, as we've divested markets for you to know that we're going to tell you. Just as soon as we have, uh, news. Um, really all I would tell you is that the, uh, the dialogues are ongoing. Um, we are looking into, uh, creative commercial Solutions, uh, broadly and
Um, we will uh we will absolutely share good news as we as we have it, but there's nothing, uh, nothing to report right now.
Great, thank you both.
Thanks.
Our next question will come from Abby Abby Steiner with JP Morgan. You may now unmute your audio and ask your question.
Uh hi. Good morning, thank you. Uh, couple questions here.
Very helpful, uh, particularly given, you know, some thoughts around the ad ad environment here, curious how that contracted amount Compares. Maybe the prior years at this time and just given, we're here in early August.
Is that suggests I'm not trying to put you on the spot here, but that's just does that suggest potential upside and then I've got a couple more thank you.
Thanks Bobby.
Yeah, you got a shiny new metric and
you need to unpack it. I'm amazed that we got to the second question before we got 1 on this. Um so I I think what the way I would characterize it is if you know plus or minus a few percent.
Pretty, pretty typical of where we would be at this stage in the quarter. You know, we're we're a month into, um,
Q3. And um, so you know, I I I would not, I would not take it as
Um, certainly, it's not a sign of of weakness, uh, but I don't think that you should think that we, like sandbag our guidance. I think our guidance takes into account, that, that 9
Uh and you know, on the more broad ad environment, question that is that is posed. I think we have seen things, um, you know, perk up as we got into the latter part of June and into July. Um, in a way that has been encouraging for how the, how the second half is going to is going to come in.
uh, my second question here,
the inflight insights campaign attribution, roll out that you talked about is that
Clear Channel specific. And if it is, maybe talk about how that compares to what some of your competitors are doing, if you could and relatedly. Would it make sense? Maybe for the industry to get together?
To offer something like this as a whole to drive continued, share gain from other mediums and then have 1 more and thank you.
So, uh, in Flight insights is is specific to us. Uh, there are variations on measurement that are competitors are offering. Um, and certainly in the programmatic channel, there is some reporting that dsps offer. Uh, but I think we've got a, uh, a leg up in terms of the timeliness of the information flow, the challenge. Uh,
with without a call, historically has been the lag, uh, from the the data reporting and within flight insights we have um,
You know, made that made that quite time.
Uh, we do as an industry. Um,
Do a lot of work together on measurement, and I think, you know, over time it would be beneficial for the industry to standardize on things. But there are, um, you know, significant...
Disagreements, among the different players about what the appropriate level of investment is what the priority should be. Um, you know, anytime that you get a lot of entities involved working on things, it's uh it it's challenging. And so our our view is that we try to get things that are like um
core core counts.
Done at an industry level because that's something that that it's important that everybody is sort of on the same level and you've seen this in retail media. Right now, I don't think there's a day that goes by that. There's not a discussion of the fact that every retailer has a different measurement system than G is that frustrating. Um, so it'll be interesting how um those players some of whom are very large and opinionated work, work it out in their space. Um we're not as large but I suspect we're probably similarly opinionated in the outdoor space so I think you'll see us continue to work as an industry on things that support the industry as a whole. But I think you'll also see us all work to innovate and drive. Um individual enhancements that will ultimately do good things. I think you know, the second half of this year um you're going to see pharmaceutical money in the outdoor industry at a broader level than you've seen in the past. And I'm definitely going to take a Victory lap on that 1 and expect.
Drink from my fellow CEOs. Um,
Because of the work that we've done to, uh, you know, bring bring that category in. And now the agencies are working to, um, you know, broaden the, uh, the footprint that it's covering. So we we are a uh, we are an industry in front of these. Um, we definitely all watch what each other are doing. I, I think in Flight insights, is something that is going to be helpful to us in the, uh,
in the near term, but I'm sure that, uh, our competitors will come up with Innovation to help Drive the industry forward to
For a customer remaining asset, self proceeds. But I'm curious maybe if you want to
Talk a little bit about the toolkit. I, I don't know that you will and then, uh, relatedly. Dave, if you could just remind us, uh, your minimum cash balance Comfort level, and thanks for the questions again.
Sure. Uh, look, I appreciate the call out on the majorities. I um, I think we're really happy with the deal, you know, that we did and, you know, pushing out the majorities, you know, $2 billion after 2031 and 2033. Um, with our weighted average, you know, up roughly 4.8 years. So, very happy with that. Um, as far as the, uh, the senior notes, I mean, look, we're going to be generating free cash flows. I think it's a combination of generating free cash flow, you know, to your question, you know, excess cash on the balance sheet, utilizing to pay them down. Um, and then also we have asset sale proceeds that will be coming in, and we obviously talked about Brazil, the same process is ongoing. You know, we're going to utilize those to pay down debt, you know, within what our credit docs, you know, allow for.
I mean, I guess going back to your question on.
On cash balances. And then we mentioned before, you know, we we're probably in the 50 to 75 million range cash balance. So right there, there there's tests that we can utilize as well and then you know 1 last whatever you know, that's got to talk about
We're still evaluating evaluating potential, creative commercial Solutions, so you know, that could be a letter to us as well.
Thank you. All.
Thanks. Our next question will come from Jonathan Maverick with TD Cohen. You may know him. Unmute your audio and ask your question.
Hey, how are you? Um, my first question is on America Revenue grew 4% but secondly, that was flat year year implying to a margin compression there. Um, beyond the MTA site lease ramp, what were the other cost pressures impacting flow through this quarter if at all? And should we expect similar Dynamics in the, uh, in the second half?
Yeah, I I'll I'll take that. Um the answer is it's really just the majority of the week. We've talked about that in the past and that contract started, you know, November 1st of last year. So you're going to see that as we get into the fourth quarter as well and the third quarter. Um, so that's definitely having these disease. Impacts, the only other thing I I probably mentioned um which was in the second quarter, you know, we uh you know, built a large format sign which is production Revenue. It's it's lower margin. So when you put those 2 together that's really what's driving it in the second quarter um but there's really nothing to send it or something going forward. You know that I'd going out.
It really is the NCA and, you know, we'll have that contract as we get into November, you know, I think San Francisco next year. You'll see, you know, the the margin, you know, um, you know, benefit of that of that contract.
Got it. And um, my last 1 is just you reiterated, uh, these uh, Financial 25. I just see you the guidance but just given the 395 million of cash interest. Um, are you at all confident that you can generate, uh, be free cash flow positive this year uh and it's so what levers, do you find more most critical
No, no, I mean I, yes, but so the answer to that would be yes. Um, look the biggest thing is really is Eva. Um, so we we really need to, you know, Drive the Top Line, you know, to to drive either, which is going to, you know, go through the afo to cash flow. I mean, I I would talk to, you know, working capital to a certain standpoint. I mean, it's more on the collection side, just making sure we're collecting that Revenue that we're driving, that probably a big deal.
You know, from you mentioned capex.
I I said, look, we're going to manage a
earlier on in the call. Now, we're going to invest in the business. That makes sense. You got, you got to drive investment to drive, the Top Line Drive me with that. So there's always a balance there. But to me, um,
Then it's not going to be a huge flood or what I'm looking to, you know, drive a free cash flow for the year.
Got it. Thank you.
Our next question will come from Aaron Watts with Deutsche Bank. You may know, unmute your audio and ask your question.
Hi. Thanks for having me on Dave, I'll assume the switch to this uh new Zoom. Call format. A cruise to the bottom line and we'll be adjusting my model accordingly. Um
Uh, just 2 questions for me. Uh, the first 1 Sales in the airport segments, have obviously been quite strong, but I wanted to ask about the margins there, which continue to remain elevated above where,
We thought they might Trend to, what, what factors would you point to that are, that are propping them up and, and how should we think about the progression on Airport? Margins, going forward. Then I've got 1 more
Like I think the the team has done a really nice job, you know, monetizing our assets. It's it's a premium buy a lot of the verticals banking technology and perform, you know, extremely well. Um we were up you know, in the in the second quarter last year pretty well and you know we we laughed at so you know the team has performed. So what I'm thinking about margins in the business you know for the for the back half of this year, you know we're going to be in the in the low 20%.
Okay that's helpful and then save perhaps more of a housekeeping type question. But with regards to the big, beautiful Bill, well, any of the changes in their benefit, the company materially from a cash flow standpoint, whether it's interest deductibility or tax depreciation, considerations
Yeah, I think you you you answer the question for me. It's not a huge impact for for us. And you know, obviously we're still working through uh, the beautiful bills. Um but a lot of it is going to be there'll be a little bit more of an interest standpoint we file on the 163j. So that will increase slightly and from its appreciation standpoint. Uh you know they were officially phasing out what you can appreciate and that that goes back to 100% so that absolutely will have an impact from a cash, you know, from a cash. Then when really on taxes, we're not really a material taxpayer, it will help but it's it's not a, it's not a huge deal at the moment.
Appreciate the time. Thanks again. Thanks sir.
Our next question will come from David karnowski with JP Morgan. You may now unmute your audio and ask your question. Is that clear? Okay, thanks, um, just within America Q2 growth for local looks uh
can you hear me?
Yes. Yeah.
Yes, sir.
Yeah, sure. Uh no. I was just saying for the for the second quarter. Uh, local looks, uh, not a bit better than National Scott. I don't know if you could just talk to kind of how
Uh, local versus National marketers are kind of or have responded to the macro volatility we've seen and then just for America. The the revenue was a touch short of the midpoint of the guide. Uh, you gave back from May 12th to what track different from expectation. And then some of the factors that led you to reduce the the full year of America Guide to the, I think the prior low end. Thank you.
Sure. Well, I'm going to take your your second part first, um, and, and really that, that was a timing issue of a, a large contract that we thought was going to start in may that ended up starting in in very late June. Um, and that, that would have, um,
That would have pushed us well toward the upper end of the guide from from May. And you know that that happens it it was a an account that is in transition its agency and it um,
It it just, you know, they had a little, they had a little longer ramp getting going. So there was nothing, there was nothing deeper, uh, behind it and it was a national account. So that also, um, would have pushed us to
A better National number for for America, you know, on your, on your question on mix of national and local and and what's going on. I think the the thing I'd start with is if we didn't break out America in airports what we would have reported was National 4 and a half percent.
That's what the blend between. Um,
The American segment.
the airport segment is international and Dave talked a little bit about some of the verticals and some of the momentum in in airports, um, but I think it it is not the case that there's anything I point to saying that
um, you know, National is, you know, endemic weaker than local or
It's, it's it's more chunky and it's it's less predictable than than local. Um, but you know, obviously we are having tremendous success with large advertisers in the
The airport segment and we're having pretty good success with them in the um, the national segment in.
In America.
And, um, you know, there probably was a stretch.
In the, in the kind of late May early, mid June, um, where there were some lag lag effects, I think for Liberation day, although frankly it might have just been this 1 contract.
That I talked about you know, not showing up that we had we thought was going to show up that that was causing us to perceive it. Um but we we really haven't heard from advertisers generally that that they're considering pullback or that they that they are pulling back on. The contrary people are looking to invest in their in their businesses you know if I think about it as the vertical level
this year, um, that that has, um,
you know, not not been commensurate with the the Slate, it releases that we expected, you know, that that probably hasn't been as good, um, you know, on a local front restaurants and and hotels on the hotels sort of straddle, um, both of them straddle local National but but a lot
In the restaurant and hotels local National. You know, those verticals are not doing as well. Um and I think you know some of the reductions travelers from um performing countries and things like that although there has been enough.
Listed domestic travel. So there there's a lot of there's a lot of competing factors going on, but I think the story of of our results so far correlates more with the geographies. Um,
And you know, in the case with, uh, with airports,
It's the geographies that are the big geographies. The big airports, big airports are, uh, by and large with, with a couple exceptions, you know, firing on all cylinders. And in the, in the markets, um, the America markets, uh, you know, the Northeast, but that, that is, you know, heavily influenced by the NPA correct. Uh, contract that the Northeast is, is performing really well NorCal, like we talked about with San Francisco's, performing really well. So Southeast is performing really well. So there are
There are pockets of geographic strength and and if I, you know, I'll I have a lot of employees that listen to this earnings call. Um, I'm just going to like, send a a PSA to them that. If you're not 1 of the, the regions that I just named, um, you should expect that you're, you're going to be getting some attention. Um, because we need to, we need to pick it up and have, um,
And it's not that it's not the other regions are growing. It's just the other reasons might not be
as much or in, in the case of, uh,
Southern California. We're we're
You know, flattish, the flattish to a little bit down for the year and, and we need to pick that up. So um, it it that, that to me is a lot more of the story than than the national local story. I don't know. Dave, if you're experiencing a different or
No, no, I I I agree when I'm when I'm thinking about, you know, the the thing about the business, you know, from a revenue plan, when I am looking at it and see our epic standpoint and, you know, kind of where we are in the second quarter. You have a lot more markets that are up that are down, um, and the ones that are up are performing, you know, and at a grander pace. But yeah, there there are, there are a few markets, you know, that you kind of mentioned from a geographic standpoint that we need to get those to grow. And that's that's really where you get those growing and then that goes back to the question. And you know, best name in the business is dead when you when you get that Top Line growing that's that's the cycle and that's what we want to get to. So we're investing in the business and we're paying that debt at the same time.
So, a little more than you bargain for Aaron, but, but since nobody else had asked about the geography or anything, I wanted to give a little little color on that because I I know that our investors are all very interested in that.
No that's fine. Maybe just 1 more uh for David I don't know if you could just clarify on the on the lower afo guide and the and the driver there just giving the reiterated even though that would be helpful. Thanks.
Yeah, I mean we're still uh, I would say from an A, at the same we're still.
But we said in February, maybe slightly above. Um, it's really the, the, the, um,
The refinancing you know that we did in July, you know your your advertising uh in the interest expense. So that that's really what what's dropping that that difference.
Nothing more than that.
Great. Thank you.
Hi, last question will come from Patrick Shaw. With barington research, you may know, unmute your audio and ask your question.
Hi. Uh, thanks for taking the question. Um, with another question I think might be timing related but um, do you do you need to talk about like the revision on the capital expenditure guidance? I think it's, it's it's that in that should be an impacting, the like, cases of digital board installs in the near term or as Tyler thinks about that.
Now look from a from a capex uh from a guy that 1 we had you know blood contractual spend on some of our shelter deals which was driving second quarter a little bit later in the year um from a timing standpoint, there's a little bit of timing. I mean you had mentioned Harris as well that that's not
Looking at your pipeline and how they're going after the year, but, you know, but we're going to be putting in the allotment that that we we had sought out, you know, early in the year, from a digital standpoint.
Okay. Um and then this may uh go to the uh large National client you talked about earlier, but could you talk about like the
The different, the trends within static. And I, I realized that it's improved sequentially in both America's and airports. But you used me to talk about like,
Why? That's kind of continues to be lagging uh in in the second quarter in terms of the pace of growth and
Just with the Insight, how you maybe anticipate that impacting, you know, Advertiser uptake and on uh, static versus digital as you start. Uh, presenting that to Advertiser clients.
so, um,
the static versus digital is a is a many year. You, you should with the capital that you're putting behind digital, you should expect that digital is going to be growing.
Better than static. And I think that the fact that we have grown static as much as we have over the last bunch of years defies. A lot of the conventional wisdom um on that. But it is it is just a fact that advertisers really like the flexibility of digital, they like, um, the the fact that you can, you know, say you
Campaign to start on Friday, on Thursday in the campaign could be up and and active. Um they like you know, a logistically simpler implementation um where you know they don't they don't have to go through all of the all of the steps.
But I think equally as well. We have a lot of advertisers that are very passionate about their, their static signs and and they're, you know, somewhat different use cases. Static is a, a more powerful tool. Um, what you're doing a directional, um, static can be an incredibly powerful tool um, you know, going to the most extreme static which is painted when you're trying to make a statement on a you know, iconic location. Um so you know there are there are there are give and take but I I would say just in in general and and you see this in our airports business. Um, you know, as you make digital more available, uh, you are able to do creative and interesting things with the digital to, to grow the business. And so I think it is, um, it is in the interest of of The Advertiser as well as the media owner to have a a robust digital offer. This is why the cities that are still resistant on having digital signs are so frustrating.
Frustrating because they're holding back the development of our medium. Um, by not allowing us to have, you know, a, a digital presence. But as I as I say that and I talked about the, the the preference I'd be very remiss if I didn't say that, that there were equally a number of advertisers that are very passionate about owning locations, not sharing and getting the really, really great. Um, resolution you can get on a on a printed asset. So I think you're going to see I guess to to wrap it up, Patrick. The the thing I'd say is you're you're going to see the digital is going to likely, you know, systemically outperform static, but it's better given the relative Capital that we're putting into digital.
Okay, thank you.
There are no more questions, so I will now turn the call back over to Scott Wells for any closing remarks.
Great, thank. Thank you very much. And thank you all for the the questions.
But we're we're turning a big.
The day and in process, debt reduction and refinancing all combined with Organic growth in the US business, we're generating positive and growing afo after investing for growth in the business.
As we streamline costs in the simplified business ramp that MPA contract, I would expect that Revenue growth from this point. Forward is going to drive operating leverage, um, visibly operating leverage on in 2026.
We're dedicated to realizing value from the premier portfolio of assets that we operate. And we believe we're well on our way to improving highly. Our highly leveraged balance sheet.
So, all of that to say that we believe the value transfer from debt to equity is inevitable and compelling in this business. We see it out on the horizon. I've been in this industry a long time, and I know these assets are worth.
So given the trends that we're starting to see around the value of our physical presence, we are excited about what lies ahead.
Proud of the progress. We're making, uh, all of this to say, get yourselves here to New York for our investor day on September 9th because we are excited to, uh, tell you about our our long and mid-term plans. And with that, we'll wrap up and I'll thank you for your interest and your time take care.
Thank you for joining Clear Channel outdoor. Second quarter 2025 earnings calls. This concludes today's call, you may now disconnect