Outfront Media (OUT) Morgan Stanley Technology, Media & Telecom Conference summary

Growth strategy and market trends

• Focus remains on expanding digital inventory, targeting both national and local markets for revenue growth.

• National advertising has shown strong performance, especially in New York transit, while local markets face macroeconomic volatility.

• Digital revenue is expected to reach 50% of total revenue as digitization of billboards continues at a steady pace.

• Automated and programmatic sales are key growth drivers, contributing higher margins and expanding digital reach.

• Industry seeks a dynamic audience measurement currency to replace static systems like Geopath.

Technology and programmatic initiatives

• Automated revenue now represents 16% of digital revenue and is growing faster than static formats.

• All digital billboards and most transit screens are connected to programmatic platforms, with further integration planned.

• T-Mobile’s acquisition of Vistar Media is seen as a positive signal for industry innovation and potential new measurement standards.

• Programmatic capabilities are expected to drive strong transit growth, especially in New York.

Contract management and operational focus

• Exited a thin-margin, high revenue share MTA billboard contract, creating a short-term revenue headwind but minimal EBITDA impact.

• May exit other high revenue share contracts if terms do not improve, prioritizing EBITDA over revenue retention.

• Transit revenue, led by New York MTA, is recovering due to focused sales efforts and compensation plan changes.

• Above-ground and below-ground advertising in New York are seen as complementary, with both benefiting from increased city activity.