Outfront Media (OUT) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Business overview and recent evolution

• Billboards now account for 75–80% of revenue, up from 67% pre-pandemic, with transit making up the rest.

• Less than 5% of billboards are digital, but digital now generates over 30% of billboard revenue.

• Local advertising has shown steady mid-single-digit growth, while national advertising is more volatile.

• Transit revenue growth has outpaced billboard in 2024, with strong national performance, especially in New York's MTA.

Portfolio rationalization and financial strategy

• Sold Canadian business for CAD 410 million (~$300 million) to reduce leverage and focus on U.S. operations.

• Proceeds used to pay down $200 million in term loans and $100 million in other debt, reducing leverage from 5.4x to 5x.

• Targeting leverage in the 4x–5x range by year-end, with continued deleveraging into 2025.

Digital transformation and channel development

• Plan to add about 150 new digital billboards in 2024, accelerating digitization in 2025.

• Automated channels (programmatic and digital direct) now make up about 60% of digital billboard revenue and 5% of total billboard revenue, growing rapidly.

• Digital inventory, though less than 5% of total, drives over 30% of revenue and yields are rising.