Outfront Media (OUT) Q4 2024 earnings summary

Executive summary

• Organic revenues excluding Canada grew 4% year-over-year, with billboard revenues up 3% and transit revenues up nearly 9% for 2024.

• Consolidated revenue for 2024 was $1,831 million, up 0.6% year-over-year, with organic revenue up 3.9%.

• Net income for 2024 was $258 million, compared to a net loss of $425 million in 2023, reflecting a net gain on dispositions and lower impairment charges.

• Leadership transition underway, with Nick Brien as interim CEO following Jeremy Male's retirement.

• Sale of the Canadian business for $300 million reduced leverage to 4.7x from 5.4x at 2023 year-end.

Financial highlights

• Q4 organic revenues grew 3.9% year-over-year, slightly ahead of guidance.

• Q4 adjusted OIBDA was $155 million, AFFO was $119 million; full-year AFFO grew 11.5% to $308 million.

• Billboard revenue for 2024 was $1,409 million, up 2.9% year-over-year; transit revenue was $384 million, up 8.8%.

• Digital revenues in Q4 2024 were $179.5 million, up 6.7% year-over-year, with automated digital revenue up 40.4%.

• Digital revenue represented nearly 36% of total, up from 34% last year.

Outlook and guidance

• Q1 2025 revenues expected to be slightly up year-over-year, with billboard flat and transit up mid-single digits.

• 2025 consolidated AFFO growth expected in the mid-single digit range, driven by OIBDA improvement.

• CapEx for 2025 projected at $85 million, with $35 million for maintenance, including $10 million for digital billboard replacements.