Clear Channel Outdoor Holdings Inc (CCO) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Clear Channel Outdoor Holdings, Incorporated's 2024 first-quarter earnings conference call. (Operator Instructions)

女士們、先生們，感謝你們的支持，並歡迎參加 Clear Channel Outdoor Holdings, Incorporated 的 2024 年第一季收益電話會議。（操作員說明）

At this time, I'll now turn the conference over to your host, Eileen McLaughlin, Vice President, Investor Relations. Please go ahead.

現在，我將把會議交給東道主、投資者關係副總裁艾琳·麥克勞林 (Eileen McLaughlin)。請繼續。

Good morning and thank you for joining our call. On the call today are Scott Wells, our CEO; and David Sailer, our CFO. They will provide an overview of the 2024 first-quarter operating performance of Clear Channel Outdoor Holdings, Inc., and Clear Channel International B.V.

早安，感謝您加入我們的通話。今天參加電話會議的是我們的執行長 Scott Wells；以及我們的財務長大衛‧賽勒 (David Sailer)。他們將概述 Clear Channel Outdoor Holdings, Inc. 和 Clear Channel International B.V. 2024 年第一季的營運表現。

We recommend you download the earnings presentation located in the financial section in our investor website and review the presentation during this call. After an introduction and a review of our results, we'll open the line for questions and Justin Cochrane, CEO of Clear Channel, UK and Europe will join Scott and Dave during the Q&A portion of the call.

我們建議您下載我們投資者網站財務部分的收益演示文稿，並在本次電話會議期間查看該演示文稿。在介紹和審查我們的結果後，我們將開通提問熱線，英國和歐洲 Clear Channel 首席執行官賈斯汀·科克倫 (Justin Cochrane) 將與斯科特和戴夫一起參與電話問答部分。

Before we begin, I'd like to remind everyone that during this call, we may make forward-looking statements regarding the company including statements about its future, financial performance, and its 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 risks contained in our earnings press release and our filings with the SEC.

在開始之前，我想提醒大家，在這次電話會議中，我們可能會做出有關公司的前瞻性陳述，包括有關其未來、財務表現和策略目標的陳述。所有前瞻性陳述均涉及風險和不確定性，無法保證管理階層的期望、信念或預測能夠實現，或實際結果不會與預期不同。請查看我們的收益新聞稿和向 SEC 提交的文件中包含的風險聲明。

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 GAAP basis as part of the earnings presentation. Also, please note that the information provided on this call speaks only to management's views as of today, May 9, 2024, and may no longer be accurate at the time of replay.

在今天的電話會議中，我們也將提及某些不符合公認會計原則的措施。作為收益報告的一部分，我們提供了將這些非 GAAP 指標與我們按照 GAAP 報告的結果進行協調的時間表。另請注意，本次電話會議中提供的資訊僅代表截至今天（2024 年 5 月 9 日）管理層的觀點，在重播時可能不再準確。

Please turn to slide 4 in the earnings presentation, and I will now turn the call over to Scott.

請翻到收益簡報中的投影片 4，我現在將把電話轉給 Scott。

Good morning, everyone, and thank you for taking the time to join us today. We delivered consolidated revenue of $478 million for the first quarter, excluding movements in foreign exchange rates, reflecting a 9.3% increase as compared to the prior year. Many of the trends we saw in the fourth quarter continued into the first quarter. These results, which were in line with our guidance reflect record first quarter revenue for America, Airports, and Europe-North, excluding sold markets and movements in foreign exchange rates.

大家早安，感謝您今天抽出時間加入我們。我們第一季的綜合營收為 4.78 億美元，不包括匯率變動，較上年成長 9.3%。我們在第四季看到的許多趨勢延續到了第一季。這些結果符合我們的指引，反映了美國、機場和北歐地區創紀錄的第一季收入，不包括銷售市場和外匯匯率的變動。

We remain focused on delivering on our strategic plan, which is aimed at enhancing the profitability of our business, focusing on our higher-margin US assets and integrating the right technology into our platform to strengthen our ability to serve a broader range of advertisers. In our Americas segment, during the first quarter, digital continued to grow and print bounced back nicely, driven in large part by growth in our local sales channel, including secondary locations, which helped margins.

我們仍然專注於實現我們的戰略計劃，該計劃旨在提高我們業務的盈利能力，專注於我們利潤率較高的美國資產，並將正確的技術整合到我們的平台中，以增強我們為更廣泛的廣告商提供服務的能力。在我們的美洲業務領域，第一季度，數位業務持續成長，印刷業務強勁反彈，這在很大程度上得益於我們本地銷售管道（包括二級銷售管道）的成長，這有助於提高利潤率。

Performance was broad-based across the majority of our markets. Verticals that delivered the most growth include business services, amusements, and media entertainment. We continue to develop ways we can proactively bring new national brands into the sector against the backdrop of mixed inbound demand. Our national sales team continues to generate incremental revenue in both pharma and CPG. And programmatic is performing very well, delivering a double-digit increase in the first quarter with very strong growth in the current quarter.

我們的大多數市場的表現都有廣泛的基礎。成長最快的垂直產業包括商業服務、娛樂和媒體娛樂。在入境需求參差不齊的背景下，我們繼續尋找方法，並積極地將新的國家品牌引入該行業。我們的全國銷售團隊繼續在製藥和消費品領域創造增量收入。程序化的表現非常好，第一季實現了兩位數的成長，目前季度的成長非常強勁。

Supporting our efforts, we're continuing to enhance our sales teams, including attracting sales professionals directly from the key verticals we're targeting. We believe this will have a positive impact and drive incremental revenue. Overall, we believe we're effectively playing offense in pursuing business across a number of channels. For example, our RADAR data solutions continuing to bring innovation into the out-of-home marketplace, opening doors to new advertisers and verticals by providing previously unavailable insights to customers on how their out-of-home campaigns are performing.

為了支持我們的努力，我們將繼續增強我們的銷售團隊，包括直接從我們目標的關鍵垂直領域吸引銷售專業人員。我們相信這將產生積極影響並推動收入增量。總的來說，我們相信我們在透過多種管道尋求業務方面正在有效地進攻。例如，我們的雷達數據解決方案繼續將創新帶入戶外市場，透過向客戶提供以前無法獲得的關於戶外廣告活動表現的見解，為新的廣告商和垂直行業打開大門。

We are piloting a new approach where customers are starting to get weekly updates on campaign performance initially around how Clear Channels' media is driving visits into restaurants and stores that advertise in our markets. Regular delivery of campaign performance data is a critical step in moving us closer to the experience that advertisers expect from digital media.

我們正在試行一種新方法，客戶開始每週獲得有關活動效果的最新信息，最初圍繞 Clear Channels 的媒體如何推動在我們市場上做廣告的餐館和商店的訪問量進行。定期提供活動成效數據是讓我們更接近廣告主期望從數位媒體獲得的體驗的關鍵一步。

We also continue to innovate around out-of-homes impact on mobile app behaviors and how our media drives measurable performance. For example, we completed a study in Q1 for a mobile audio entertainment platform that demonstrated that cut consumers exposed to one brands ads in our airports were more likely to try the app and were more deeply engaged with the app's content. It's encouraging progress that reinforces the importance of leveraging data as a way of working with more digital marketers and accessing incremental budgets.

我們也繼續圍繞戶外對行動應用程式行為的影響以及我們的媒體如何推動可衡量的性能進行創新。例如，我們在第一季完成了一項針對行動音訊娛樂平台的研究，該研究表明，在機場接觸某個品牌廣告的消費者更有可能嘗試該應用程序，並且更深入地參與該應用程式的內容。令人鼓舞的進展強調了利用數據作為與更多數位行銷人員合作和獲取增量預算的一種方式的重要性。

Turning to Airports, our business remains robust, driven by continued strength across multiple verticals. We're leveraging the premium nature of our inventory to drive campaigns for major brands looking to connect with millions of travelers. We continue to invest in digital displays across our airports, including in the New York and New Jersey airports. We recently installed a mix of highly visible dynamic digital platforms that are providing us with additional premium inventory in these key high-volume locations to sell, allowing us to take greater advantage of strong demand.

說到機場，在多個垂直領域持續強勁的推動下，我們的業務仍然強勁。我們正在利用庫存的優質特性來推動希望與數百萬旅行者建立聯繫的主要品牌的行銷活動。我們繼續投資整個機場的數位顯示屏，包括紐約和新澤西機場。我們最近安裝了一系列高度可見的動態數位平台，這些平台為我們在這些關鍵的大批量銷售地點提供了額外的優質庫存，使我們能夠更好地利用強勁的需求。

Europe-North is also continuing to deliver great results with the second quarter on track to continue the strong momentum seen in the first quarter as well as last year, with growth continuing in the largest markets, the UK, Sweden, and Belgium. The momentum in the second quarter has been buoyed by advertiser commitments around the European Football Championship. The continued strength in the business has been particularly impressive given the ongoing M&A efforts.

歐洲北部地區也持續取得出色的業績，第二季預計將延續第一季和去年的強勁勢頭，其中最大的市場英國、瑞典和比利時持續成長。第二季的勢頭受到了廣告商對歐洲足球錦標賽的承諾的提振。鑑於持續的併購努力，該業務的持續實力尤其令人印象深刻。

Moving to our balance sheet. In March, we announced the refinancing of our term loan and the CCIBV notes that extended our 2025, and 2026 maturities and created flexibility supporting the M&A process in Europe. Dave will go through the details, but I do want to congratulate the team on successfully executing these transactions at what we consider favorable rates in a volatile market.

轉向我們的資產負債表。3 月份，我們宣布對定期貸款和 CCIBV 票據進行再融資，延長了 2025 年和 2026 年的期限，並為支持歐洲的併購流程創造了靈活性。戴夫將詳細介紹細節，但我確實想祝賀球隊在動蕩的市場中以我們認為有利的利率成功執行了這些交易。

With regard to our guidance, Dave will also expand on the details later, but I want to highlight, we are confirming our full year revenue guidance, which is expected to increase mid-single digits over last year, excluding movements in foreign exchange rates. So overall, we're pleased with our performance.

關於我們的指導，戴夫稍後還將詳細介紹細節，但我想強調的是，我們正在確認我們的全年收入指導，預計將比去年增長中個位數，不包括外匯匯率的變動。總的來說，我們對我們的表現感到滿意。

In addition to benefiting from the overall growth of the economy, we're seeing positive impacts on various levels from our investments in digital, in our sales teams, in our new website and of course, in programmatic and data analytics. These initiatives all bode well for our longer-term growth profiles.

除了受益於經濟的整體成長之外，我們還看到我們在數位化、銷售團隊、新網站，當然還有程序化和數據分析方面的投資對各個層面產生了積極影響。這些舉措對於我們的長期成長來說都是好兆頭。

On the M&A front, we are in negotiations on the sale of our Europe-North segment, and we continue to engage with potential counterparties in LatAm. We will update the market as and when we're able.

在併購方面，我們正在就出售歐洲北部部門進行談判，並繼續與拉丁美洲的潛在交易對手進行接觸。我們將盡可能更新市場情況。

With that, let me hand the call over to Dave. As you may know, Dave was promoted to CFO on March 1. He has made a seamless transition, and I look forward to a strong partnership with him as we move forward in executing our strategic plan.

接下來，讓我把電話轉給戴夫。如你所知，Dave 於 3 月 1 日晉升為財務長。他實現了無縫過渡，我期待在我們推進執行策略計劃的過程中與他建立牢固的合作關係。

Thanks, Scott. Good morning, everyone. I've appreciated the support all the teams have provided me as I transitioned into this new role. Please see slide 5, for an overview of our results. As a reminder, Europe-South is included in discontinued operations. Additionally, during our discussion of GAAP results, I'll also talk about our results excluding movements in foreign exchange rates, a non-GAAP measure. We believe this provides greater comparability when evaluating our performance.

謝謝，斯科特。大家，早安。我非常感謝所有團隊在我過渡到這個新角色時為我提供的支持。請參閱投影片 5，以了解我們的結果概述。提醒一下，歐洲南部已包含在已停止營運的業務中。此外，當我們討論公認會計準則結果時，我還將討論不包括外匯匯率變動（一項非公認會計準則衡量標準）的結果。我們相信，這在評估我們的績效時提供了更大的可比性。

Direct operating expenses and SG&A expenses include restructuring and other costs that are excluded from adjusted EBITDA to segment adjusted EBITDA. The amounts I refer to are for the first quarter of 2024, and the percent changes are first quarter 2024, compared to the first quarter of 2023, unless otherwise noted.

直接營運費用和 SG&A 費用包括重組和不包括在調整後 EBITDA 至部門調整後 EBITDA 中的其他成本。除非另有說明，我提到的金額是 2024 年第一季的金額，百分比變化是 2024 年第一季與 2023 年第一季相比的情況。

Now onto the first quarter reported results. Consolidated revenue for the quarter was $482 million, a 10.1% increase. Excluding movements in foreign exchange rates, consolidated revenue for the quarter was $478 million, up 9.3%. Loss from continuing operations was $89 million, an improvement as compared to the prior year.

現在我們來看看第一季的業績報告。該季度綜合營收為 4.82 億美元，成長 10.1%。不計匯率變動，該季綜合營收為 4.78 億美元，成長 9.3%。持續經營虧損為 8,900 萬美元，較前一年有所改善。

Consolidated net loss, which includes the loss from discontinued operations, was also $89 million. Adjusted EBITDA was $97 million, up 53.6%. Excluding movements in foreign exchange rates, adjusted EBITDA was up 53%. The increase is largely driven by America and Airports. AFFO was negative $16 million in the first quarter, an improvement of 62.6%. Excluding movements in foreign exchange rates, AFFO was up 61.6%.

合併淨虧損（包括已終止經營業務的虧損）也為 8,900 萬美元。調整後 EBITDA 為 9,700 萬美元，成長 53.6%。不計匯率變動，調整後 EBITDA 成長 53%。這一增長主要是由美國和機場推動的。第一季 AFFO 虧損 1,600 萬美元，年增 62.6%。排除匯率變動，AFFO 上漲 61.6%。

On to slide 6, for the Americas segment for first quarter results. America revenue was $250 million, up 5.8%, reflecting increased revenue in all regions. Billboard revenue was higher, driven by increased demand and digital deployments with growth both in print and digital bulletins. Digital revenue, which accounted for 33.7% of America revenue, was up 7.9% to $84 million.

前往投影片 6，查看美洲部分第一季的業績。美洲營收為 2.5 億美元，成長 5.8%，反映出所有地區收入的成長。由於需求增加和數位部署以及印刷和數位公告的成長，廣告看板收入增加。數位收入占美國收入的 33.7%，成長 7.9% 至 8,400 萬美元。

National sales, which accounted for 34.5% of America revenue were up 5.5%. Local sales accounting for 65.5% of America revenue and were up 6%. Direct operating and SG&A expenses were flat with 2023 at $155 million. Higher compensation costs, largely driven by increased headcount and pay increases were offset by lower credit loss expense.

占美國收入 34.5% 的全國銷售額成長了 5.5%。本地銷售額占美國收入的 65.5%，成長了 6%。直接營運和 SG&A 支出與 2023 年持平，為 1.55 億美元。較高的薪資成本主要是由於員工人數和薪資成長所致，但被較低的信貸損失費用所抵消。

Site lease expense was down slightly, driven by the renegotiation of an existing contract. Segment adjusted EBITDA was $95 million, up 17.3% with a segment's adjusted EBITDA margin of 38.2%, an improvement over the prior year. The improvement in segment adjusted EBITDA margin was driven by the strong revenue performance in addition to the lower credit loss expense and favorable revenue mix.

由於現有合約的重新談判，場地租賃費用略有下降。部門調整後 EBITDA 為 9,500 萬美元，成長 17.3%，部門調整後 EBITDA 利潤率為 38.2%，比上年有所改善。除了較低的信貸損失費用和有利的收入組合之外，強勁的收入表現也推動了部門調整後 EBITDA 利潤率的改善。

Please see slide 7 for a review of the first quarter results for Airports. Airports revenue was $77 million, up 43% with strong demand across the portfolio. Digital revenue, which accounted for 55.4% of Airports revenue was up 44.1% to $43 million. National sales, which accounted for 55.2% of Airports revenue were up 25.5%. Global sales accounted for 44.8% of Airports revenue and were up 72.8%.

請參閱投影片 7，以了解機場第一季業績回顧。機場營收達 7,700 萬美元，成長 43%，整個投資組合需求強勁。佔機場收入 55.4% 的數位收入成長了 44.1%，達到 4,300 萬美元。佔機場收入 55.2% 的全國銷售額成長了 25.5%。全球銷售額佔機場收入的 44.8%，年增 72.8%。

Direct operating and SG&A expenses were up 21.9% to $58 million. The increase is primarily due to a 21.4% increase in site lease expense to $44 million, driven by higher revenue and an increase in compensation costs, largely driven by higher sales commissions. Segment adjusted EBITDA was $19 million, up 204.6% with a segment adjusted EBITDA margin of 24.8%. The improvement in the segment adjusted EBITDA margin is driven in large part by the increase in revenue in the quarter.

直接營運和 SG&A 費用成長 21.9%，達到 5,800 萬美元。這一成長主要是由於收入增加和補償成本增加（主要由銷售佣金增加推動），場地租賃費用增加了 21.4%，達到 4,400 萬美元。部門調整後 EBITDA 為 1,900 萬美元，成長 204.6%，部門調整後 EBITDA 利潤率為 24.8%。部門調整後 EBITDA 利潤率的改善在很大程度上是由本季營收的成長所推動的。

On to slide 8. For a review of our performance in Europe-North, my commentary on Europe-North is on results that had been adjusted to exclude movement in foreign exchange rates. Europe-North revenue increased 5.9% to %136 million due to higher revenue in the UK, Sweden, and Belgium, driven by increased demand and digital deployments, partially offset by the loss of a transit contract in Norway. Digital accounting for 52.4% of Europe-North's total revenue and was up 9.1% to $71 million. Europe North direct operating and SG&A expenses were down slightly to $121 million due to a decrease in site lease expense, which was down 5.8% to $53 million, driven by the contract loss in Norway. This was partially offset by higher compensation costs.

轉到投影片 8。為了回顧我們在歐洲北部的表現，我對歐洲北部的評論是針對經過調整以排除外匯匯率變動的結果。歐洲北部地區的收入成長了 5.9%，達到 1.36 億%，這是由於需求和數位部署的增加推動了英國、瑞典和比利時的收入增加，但部分被挪威運輸合約的損失所抵消。數位業務佔 Europe-North 總營收的 52.4%，成長 9.1% 至 7,100 萬美元。由於挪威合約損失導致場地租賃費用下降 5.8%，至 5,300 萬美元，北歐直接營運和 SG&A 費用小幅下降至 1.21 億美元。這被較高的補償成本部分抵銷。

Europe-North segment adjusted EBITDA was up 92.5% to $14 million, and the segment adjusted EBITDA margin was 10.1%, an improvement over the prior year. The first quarter historically had the lowest segment adjusted EBITDA resulting in margins being more sensitive to fluctuations in revenue and contract mix.

歐洲-北歐部門調整後 EBITDA 成長 92.5%，達到 1,400 萬美元，部門調整後 EBITDA 利潤率為 10.1%，較前一年改善。第一季的部門調整後 EBITDA 歷來最低，導致利潤率對收入和合約組合的波動更加敏感。

Moving on to CCIBV on slide 9. Clear Channel International B.V. or CCIBV, an indirect wholly owned subsidiary of the company and the borrower under the CCIBV term loan facility includes the operations of our Europe-North and Europe-South segments, as well as Singapore, which is included in other.

轉到幻燈片 9 上的 CCIBV。Clear Channel International B.V. 或 CCIBV 是該公司的間接全資子公司，也是 CCIBV 定期貸款融資下的借款人，包括我們的歐洲北部和歐洲南部部門以及新加坡（包含在其他部門）的業務。

The financial results of Singapore have historically been immaterial to the results of CCIBV. And revenue and expenses for this business were further reduced in the first quarter of 2024 due to the loss of a contract. As the current and former businesses in Europe-South segment are considered discontinued operations, the results of these businesses are reported as a separate component of consolidated results and the CCIBV consolidated statements for all periods presented and are excluded from the discussion below.

新加坡的財務表現歷來對 CCIBV 的表現並不重要。由於合約損失，該業務的收入和支出在2024年第一季進一步減少。由於歐洲南部部門目前和以前的業務被視為已終止經營，因此這些業務的業績將作為合併業績和 CCIBV 合併報表中所有期間的單獨組成部分進行報告，並且被排除在下面的討論之外。

CCIBV results from continuing operations for the first quarter of 2024 as compared to the same period of 2023 are as follows. CCIBV revenue increased 3.8% to $140 million from $134 million. Excluding the $3 million impact of movements in FX, CCIBV revenue increased 1.4% as higher revenue from our Europe-North segment, as I just mentioned, was partially offset by the loss of a contract in Singapore. CCIBV's operating loss was $7 million compared to the operating loss of $18 million in the same period of 2023.

CCIBV 2024 年第一季持續經營業績與 2023 年同期相比如下。CCIBV 營收成長 3.8%，從 1.34 億美元增至 1.4 億美元。排除外匯波動帶來的 300 萬美元影響，CCIBV 收入成長了 1.4%，因為正如我剛才提到的，我們歐洲北部部門的收入增加部分被新加坡合約的損失所抵消。CCIBV 的營運虧損為 700 萬美元，而 2023 年同期的營運虧損為 1,800 萬美元。

Now moving to slide 10, and our review of capital expenditures. CapEx totaled $24 million in the first quarter, a decrease of $9 million over the prior year due to timing of CapEx spend in both America and Airports.

現在轉到投影片 10，我們對資本支出進行審查。第一季資本支出總額為 2,400 萬美元，比前一年減少 900 萬美元，原因是美國和機場的資本支出時間表。

Now on to slide 11. During the first quarter, cash and cash equivalents decreased by $58 million to $193 million, primarily as a result of $127 million in cash interest payments, which included an additional $48 million in payments due to timing. Specifically, the cash paid for interest during the first quarter increased $55 million compared to the same period in the prior year. Approximately $48 million increase is related to the timing of interest paid early as a result of the debt refinancing transactions in March 2024, and the payment of the first semiannual interest payment on the CCOH 9% senior secured notes issued in August 2023.

現在轉到投影片 11。第一季度，現金和現金等價物減少 5,800 萬美元，至 1.93 億美元，主要是由於支付了 1.27 億美元的現金利息，其中包括因時間安排而額外支付的 4,800 萬美元。具體來說，第一季支付利息的現金比去年同期增加了5,500萬美元。約 4,800 萬美元的增加與 2024 年 3 月債務再融資交易導致提前支付利息的時間以及支付 2023 年 8 月發行的 CCOH 9% 優先擔保票據的第一筆半年度利息有關。

The remaining increase is due to higher interest rates on the term loan facility. Our liquidity was $389 million as of March 31, 2024, down $97 million compared to liquidity at the end of the fourth quarter due to the decline in cash and cash equivalents, as well as the decrease in the availability under the receivable base credit facility due to lower net receivables at the end of the quarter. Our debt was $5.7 billion as of March 31, 2024, a slight increase compared to December 31, 2023, due to the refinancing in March.

剩餘的成長是由於定期貸款利率上升所致。截至2024 年3 月31 日，我們的流動資金為3.89 億美元，比第四季末的流動資金減少9,700 萬美元，原因是現金和現金等價物減少，以及應收帳款基礎信貸安排下的可用資金減少降低季末的應收帳款淨額。截至 2024 年 3 月 31 日，我們的債務為 57 億美元，由於 3 月的再融資，較 2023 年 12 月 31 日略有增加。

As Scott mentioned, we successfully executed debt transactions with favorable terms during the quarter that improved our balance sheet by deferring our near-term maturities and reducing our anticipated cash interest payments in 2024 by approximately $18 million as a result of the refinancings. On March 18, 2024, we issued $865 million aggregate principal amount of 7.875% senior secured notes due 2030, and used a portion of the proceeds therefrom to prepay $835 million of borrowings outstanding under our term loan facility.

正如Scott 所提到的，我們在本季度成功地以優惠條件執行了債務交易，透過推遲近期到期日並透過再融資將2024 年預期現金利息支付減少約1800 萬美元，改善了我們的資產負債表。2024 年3 月18 日，我們發行了本金總額為8.65 億美元、利率為7.875%、2030 年到期的優先擔保票據，並使用其中的一部分收益來預付我們定期貸款安排下的8.35 億美元未償還借款。

At the same time, we amended our senior secured credit agreement to, among other things, refinanced the $425 million remaining principal balance on the term loan facility and to extend its maturity date from 2026 to 2028. On March 22, 2024, CCIBV entered into a credit agreement comprising two tranches of term loan totaling an aggregate principal amount of $375 million, which mature in 2027 and used the proceeds therefrom to redeem all of the outstanding CCIBV 6.625% senior secured notes due 2025.

同時，我們修改了優先擔保信貸協議，除其他外，為定期貸款安排的 4.25 億美元剩餘本金餘額進行再融資，並將其到期日從 2026 年延長至 2028 年。2024 年3 月22 日，CCIBV 簽訂了一項信貸協議，包括兩批定期貸款，本金總額總計3.75 億美元，將於2027 年到期，並使用所得款項贖回所有未償還的2025 年到期的CCIBV 6.625% 優先擔保票據。

Our weighted average cost of debt was 7.4%, a slight improvement over year-end. As of March 31, 2024, our first lien leverage ratio was 5.38 times, an improvement over year end. The credit agreement covenant threshold is 7.1 times.

我們的加權平均債務成本為 7.4%，比去年底略有改善。截至2024年3月31日，我們的第一留置權槓桿率為5.38倍，較去年底有所改善。信貸協議契約門檻為7.1倍。

Now on to slide 12, and our guidance for the second quarter and the full year 2024. All consolidated guidance and Europe-North guidance excludes movements in foreign exchange rates with the exception of capital expenditures and cash interest payments. For the second quarter, we believe our consolidated revenue will be between $547 million and $572 million, representing a 3% to 8% increase over the second quarter of 2023. We expect America revenue to be between $290 million and $300 million and Airports revenue is expected to be between $82 million and $87 million. Europe-North revenue is expected to be between $155 million and $165 million.

現在轉到投影片 12，以及我們對第二季和 2024 年全年的指導。除資本支出和現金利息支付外，所有綜合指引和北歐指引均不包括外匯匯率變動。對於第二季度，我們相信我們的合併收入將在 5.47 億美元至 5.72 億美元之間，比 2023 年第二季度增長 3% 至 8%。我們預計美國收入將在 2.9 億美元至 3 億美元之間，機場收入預計將在 8,200 萬美元至 8,700 萬美元之間。歐洲北部收入預計在 1.55 億美元至 1.65 億美元之間。

Moving onto our full year guidance. We are confirming the full year guidance for revenue, adjusted EBITDA, and CapEx provided in February. Cash interest payments, loss from continuing operations, and AFFO have been revised to reflect the recent refinancings and other updated information. We expect consolidated revenue to be between $2.2 billion and $2.26 billion, representing a 3% to 6% increase over 2023.

轉向我們的全年指導。我們正在確認 2 月提供的全年收入指引、調整後 EBITDA 和資本支出。現金利息支付、持續經營損失和 AFFO 已進行修訂，以反映最近的再融資和其他更新資訊。我們預計綜合收入將在 22 億美元至 22.6 億美元之間，比 2023 年成長 3% 至 6%。

America revenue is expected to be between $1.135 billion and $1.165 billion. Airports revenue is expected to be between $345 million and $360 million. Europe-North revenue is expected to be between $635 million and $655 million. On a consolidated basis, we expect adjusted EBITDA to be between $550 million and $585 million. AFFO guidance is $80 million to $105 million. Capital expenditures are expected to be in the range of $130 million and $150 million with a continued focus on investing in our digital footprint in the US.

美國收入預計在 11.35 億美元至 11.65 億美元之間。機場收入預計在 3.45 億美元至 3.6 億美元之間。歐洲北部收入預計在 6.35 億美元至 6.55 億美元之間。在合併基礎上，我們預計調整後 EBITDA 將在 5.5 億美元至 5.85 億美元之間。AFFO 指引值為 8,000 萬至 1.05 億美元。資本支出預計在 1.3 億至 1.5 億美元之間，並繼續專注於投資我們在美國的數位足跡。

Additionally, we anticipate having cash interest payment obligations of $436 million in 2024, and $425 million in 2025. The expected increase in cash interest payments in 2024, compared to the prior year is largely due to differences in the timing of interest payments. We expect $93 million of cash interest to be paid in the second quarter. This guidance assumes that we do not refinance or incur additional debt. And now let me turn the call back to Scott.

此外，我們預計 2024 年的現金利息支付義務為 4.36 億美元，2025 年的現金利息支付義務為 4.25 億美元。與前一年相比，2024 年現金利息支付的預期增加主要是由於利息支付時間的差異。我們預計第二季將支付 9,300 萬美元的現金利息。本指南假設我們不進行再融資或承擔額外債務。現在讓我把電話轉回給史考特。

Thanks, Dave. To recap, we're positive about the trends we're seeing in our business and our team's disciplined focus on executing our plan. Our performance is broad-based across the portfolio, and our outlook remains positive. In the US, we're making good progress in leveraging the investments we're making to modernize our platform and expand the range of advertisers we can serve. At the same time, we remain committed to streamlining our organization with a focus on our America and Airports segments.

謝謝，戴夫。回顧一下，我們對我們在業務中看到的趨勢以及我們團隊對執行計劃的嚴格關注持積極態度。我們的投資組合績效基礎廣泛，我們的前景仍然樂觀。在美國，我們在利用我們的投資來實現平台現代化並擴大我們可以服務的廣告商範圍方面取得了良好進展。同時，我們仍然致力於精簡我們的組織，並專注於我們的美國和機場部門。

Summing up, with our operating progress and the refinancings, we reduced exposure to rate hikes, retained optionality to hedge down or refinance as rates move down and created room for adjusted EBITDA growth by moving our maturities out. And if you take our full-year AFFO guidance and include our discretionary CapEx, we expect to be close to positive cash flow in 2024.

總而言之，隨著我們的營運進展和再融資，我們減少了升息風險，保留了利率下降時對沖或再融資的選擇權，並透過推遲到期日為調整後的 EBITDA 成長創造了空間。如果您採用我們的全年 AFFO 指導並考慮我們的可自由支配資本支出，我們預計 2024 年將接近正現金流。

Looks like pretty good progress from our point of view. Many thanks to our company-wide team for their ongoing contributions as we pursue growth this year. And now let me turn over the call to the operator and Justin Cochrane will join us on the call.

從我們的角度來看，這似乎是一個相當不錯的進展。非常感謝我們全公司的團隊在我們今年追求成長的過程中所做的持續貢獻。現在讓我把電話轉給接線員，賈斯汀·科克倫 (Justin Cochrane) 將加入我們的通話。

(Operator Instructions)

（操作員說明）

Cameron McVeigh, Morgan Stanley.

卡梅倫‧麥克維，摩根士丹利。

Hey, guys. Thank you, Scott, I thought it was interesting your Americas performance in national and local versus some of your peers. So hoping you could discuss maybe in your view why there is a divergence in any other color on your view of the current state of the ad market? And then secondly, how would you suggest we think about AFFO growth beyond 2024? Thank you.

大家好。謝謝你，斯科特，我認為與你的一些同行相比，你在美洲國家和地方的表現很有趣。因此，希望您能討論一下您認為為什麼在您對廣告市場當前狀況的看法上存在任何其他顏色的分歧？其次，您建議我們如何考慮 2024 年後的 AFFO 成長？謝謝。

Thanks, Cameron. Yeah, I mean, I think there's a lot of things going on. And it's always hard to bridge with the competitor where we don't know exactly how they calculate the numbers and how they choose to report them. I think as we've said, and I do think this is pretty consistent. What we call national is tied to the biggest agencies and the business placed by the biggest agencies. That's how we get at the metrics. And as we look at it, I mean, I think you can see a couple of things just in our numbers. Of you look at America versus Airports, international grew five times as much in airports as it did in America and the roadside business.

謝謝，卡梅倫。是的，我的意思是，我認為發生了很多事情。而且我們總是很難與競爭對手建立聯繫，因為我們不確切地知道他們如何計算這些數字以及他們如何選擇報告這些數字。我認為正如我們所說，而且我確實認為這是非常一致的。我們所說的全國性是與最大的機構和最大的機構所進行的業務連結在一起的。這就是我們獲取指標的方式。當我們審視它時，我的意思是，我認為你可以從我們的數據中看到一些事情。對比美國和機場，國際機場的成長速度是美國和路邊業務的五倍。

And I think that speaks to the challenge of thinking of national as like as a singular thing. So it's a hard number to compare. I do think we have some things flowing through there that are probably differential, particularly related to the pharma vertical. I think we are having success in that and are blazing the trail in that and that some we probably don't have -- our competitors probably don't have as much of that flowing through.

我認為這說明了將民族視為單一事物的挑戰。所以這是一個很難比較的數字。我確實認為我們那裡有一些可能有所不同的東西，特別是與製藥垂直領域相關的東西。我認為我們在這方面取得了成功，並在這方面開闢了道路，而有些我們可能沒有——我們的競爭對手可能沒有那麼多的經驗。

I don't have -- I think probably the only other thing I'd call out that's tangible is you may recall from Q1 last year, we had a pretty rough Q1 last year, and that was at least partly because of challenges in California, particularly in Northern California. And that has stabilized and started to move in the other direction. I won't say that it's fully where it needs to be, but it's in a significantly better place than last year. And I think that probably colors those numbers as well. Those would be the things that I would pick off. I don't know, Dave, if there's anything that jumps to your mind?

我沒有——我想我要指出的唯一一件有形的事情是你可能還記得去年第一季度，我們去年的第一季度相當艱難，這至少部分是因為加州的挑戰，特別是在北加州。這種情況已經穩定下來並開始朝另一個方向發展。我不會說它完全達到了需要的水平，但它的情況比去年要好得多。我認為這也可能為這些數字帶來色彩。這些都是我會挑選的東西。戴夫，我不知道你有沒有想到什麼？

No, I think that covers it.

不，我認為這涵蓋了它。

Then do you want to take the AFFO?

那你想拿AFFO嗎？

Yeah. When you're thinking about AFFO, as we're moving forward, the components of AFFO, when you think about our interest and what we did in the month of March, which I was very pleased with the pushing out of our maturities for notes that were due in '25 and '26, and they are pushed out to 2027, 2028 and some of the term loan was pushed out to 2030 with the notes that we issued. But from an AFFO standpoint, I feel like a lot of the components, interest, maintenance capital should be pretty similar to where we are this year. I think the growth in our EBITDA is really going to drive our AFFO higher as we get into next year.

是的。當你想到 AFFO 時，當我們在前進時，當你想到我們的興趣以及我們在 3 月份所做的事情時，AFFO 的組成部分，我對延長票據到期日感到非常高興這些貸款原定於25年和26 年到期，現在被推遲到2027 年、2028 年，部分定期貸款隨著我們發行的票據被推遲到2030 年。但從 AFFO 的角度來看，我覺得很多組成部分、利息、維護資本應該與今年的情況非常相似。我認為，隨著明年的到來，我們 EBITDA 的成長確實會推動我們的 AFFO 走高。

Yeah. Cameron, you had asked about the general ad market. I'm sorry, I left that one off in my in my opening of trying to bridge to numbers, but I don't know what I'm bridging from just in terms of the ad market. And I think I'd characterize it as the local market remains strong and pretty broad-based. Business services amusements, you know, really a number of retail, a number of verticals do and doing really well in that space. Do you know in national entertainment is picking up -- media is picking up, I think tech is picking up.

是的。卡梅倫，您問過一般廣告市場的狀況。抱歉，我在嘗試連接數字的開場白中遺漏了這一點，但我不知道就廣告市場而言我正在連接什麼。我認為我將其描述為本地市場仍然強勁並且基礎相當廣泛。商業服務娛樂，你知道，很多零售業、很多垂直產業都在做，而且在這個領域做得非常好。你知道嗎，全國娛樂業正在崛起——媒體正在崛起，我認為科技正在崛起。

So I think there are a number of things moving in the right direction. We had hoped to see more activity in auto insurance this year, and that has not come together so far, there have been a lot of conversations, but no significant orders. I think that the broader health care, set aside pharma, the broader health care space, which is partly local, partly national, but a lot of cross market, a lot of regional health care, that hasn't been great.

所以我認為有很多事情正在朝著正確的方向發展。我們原本希望今年在汽車保險領域看到更多的活動，但到目前為止還沒有實現，有很多對話，但沒有重大訂單。我認為更廣泛的醫療保健，拋開製藥業，更廣泛的醫療保健空間，部分是本地的，部分是全國性的，但很多跨市場，很多區域醫療保健，這並不是很好。

So it's a mixed market. I mean, we're trying to characterize it down the middle of the fairway here and not get over excited about the relative Q1 performance and trying to focus on bringing in incremental business as the year goes on. So I think that's the best snapshot I can give you at this point. Hopefully, that helps.

所以這是一個混合市場。我的意思是，我們試圖將其描述為中途的特徵，而不是對第一季的相對錶現過度興奮，並努力專注於隨著時間的推移帶來增量業務。所以我認為這是我目前可以給你的最好的快照。希望這會有所幫助。

Definitely. Thank you, both.

確實。謝謝你們倆。

Thanks, Cam.

謝謝，卡姆。

Daniel Osley, Wells Fargo.

丹尼爾‧奧斯利，富國銀行。

Thank you. So we're impressed with the margin from diabetes in the quarter. We were also a bit surprised that the strength and flowed through to full year EBITDA raise. Were there any timing related factors that impacted the quarter? And can you help us in general, the impact of the margin puts and takes between sales build outs, tightness in negotiation and contract losses. Thank you.

謝謝。因此，我們對本季糖尿病業務的利潤印象深刻。我們也對全年 EBITDA 成長的強勁勢頭感到有點驚訝。是否有任何與時間相關的因素影響了本季？您能否從整體上幫助我們了解銷售增加之間的保證金買賣的影響、談判的緊張程度和合約損失。謝謝。

So why don't I hit on part of this and then I'll ask Dave to add in some of the detail on margins. When we do our annual guidance, we have pretty good visibility to where Q1 is going to it's going to come in and so on. I mean, I'm intrigued with -- I think the core issue here is just that, particularly in Europe and to a degree in airports. Q1 is always such a small part of the annual number that the percentages can get pretty gaudy pretty quickly.

那麼，為什麼我不抓住其中的一部分，然後我會要求戴夫添加一些關於邊距的細節。當我們進行年度指導時，我們對第一季的發展等有很好的了解。我的意思是，我很感興趣——我認為這裡的核心問題就是這個，特別是在歐洲，在某種程度上在機場。第一季始終只佔年度數字的一小部分，因此百分比很快就會變得非常華麗。

Last year in Airports, in particular that worked against us this year, it worked in favor of us and international also worked in favor of us. So I guess what I'd tell you is we had pretty good visibility to where Q1 was going to be when we guided. And so there wasn't a sense on our side of needing to up the guide at this point. This was particularly surprising from where we sat, as we looked at the full year. I don't know, Dave, if you want to talk about the puts and takes part of the question.

去年在機場，特別是今年對我們不利的情況，今年對我們有利，國際也對我們有利。所以我想我要告訴你的是，當我們指導時，我們對第一季的情況有很好的了解。因此，我們此時並不覺得需要升級指南。從我們所處的位置來看，當我們回顧全年時，這一點尤其令人驚訝。我不知道，戴夫，你是否想談談問題中的看跌期權和拿貨部分。

Yeah, absolutely. And when I when I think about the guidance from a revenue standpoint, we were within our guide in Q1. What you want to, as Scott mentioned, is it's a smaller EBITDA amount in each of our segments. So if you get a couple of one-timers going each way or a little bit of favorability, it is going to have a bigger impact on your margins in the first quarter as opposed to the Q2 through Q4.

是的，絕對是。當我從收入的角度考慮指導時，我們在第一季的指導範圍內。正如斯科特所提到的，你想要的是我們每個細分市場的 EBITDA 金額都較小。因此，如果你得到幾個一次性的人或一點點好感，那麼第一季的利潤率將比第二季到第四季的利潤率產生更大的影響。

If I unpack it by segment for America, we were up 6% first quarter of 2023, wasn't the strongest. And I'd probably say the biggest impact is when we had growth of 6% and expenses are roughly flat because of a credit loss. We had savings there. We had some bad debt in the first quarter of last year that obviously didn't repeat in the first quarter of this year for America and collections were actually very strong. That's probably driving that increase. Airports is different. We had a tough first quarter in 2023. And for 2024, we were up 43%.

如果我按美國細分市場來分析，我們在 2023 年第一季成長了 6%，並不是最強勁的。我可能會說，最大的影響是當我們的成長率為 6%，而由於信貸損失而導致費用大致持平時。我們在那裡有積蓄。去年第一季我們有一些壞賬，顯然今年第一季美國沒有重蹈覆轍，而且收款實際上非常強勁。這可能是推動這一成長的原因。機場則不同。2023 年第一季我們過得很艱難。2024 年，我們成長了 43%。

And we're continually to get on COVID site lease relief very similar to what we got last year in the first quarter. So when you have that incremental revenue growth that's really going to have a big impact on your margins. And when you think about Airports going forward, I know this question will come up here. The margins will be elevated in 2024. Still under 2023, because with the new site lease, Cloverleaf is still going to trickle in one hundreds, which are what quarters are falling but we do expect to get some. So we always talk about our airports business that it's not a high-teens business as revenue grows, you're going to get to the higher-teens, maybe up to about 20%.

我們將繼續獲得與去年第一季非常相似的新冠疫情場地租賃減免。因此，當您的收入不斷增長時，這確實會對您的利潤產生重大影響。當您考慮機場的未來發展時，我知道這個問題將會出現。2024 年利潤率將提高。仍低於 2023 年，因為隨著新的場地租賃，Cloverleaf 仍將減少數百個，這是季度下降的數字，但我們確實預計會得到一些。因此，我們總是談論我們的機場業務，隨著收入的成長，它不是一個高十幾歲的業務，你會達到更高的十幾歲，也許高達 20% 左右。

But this year, you'll be higher just because of the relief you're getting. And for Europe-North and their EBITDA, it's smaller in the first quarter and that they have as growth throughout the year on each quarter gets stronger with $7 million of EBITDA in the first quarter of 2023, they had very good top line growth. We spoke about earlier lost contract in Norway. So when your site lease goes down and their expenses are roughly flat and they have top line growth, that's really what's driving that margin impact, especially because the numbers are small, it's going to be definitely a little bit higher.

但今年，你會因為得到的緩解而變得更高。對於歐洲北部地區及其EBITDA 而言，第一季的規模較小，但隨著全年每季的成長變得更加強勁，2023 年第一季的EBITDA 為700 萬美元，他們的營收成長非常好。我們談到了早些時候在挪威失去的合約。因此，當您的網站租賃下降並且他們的費用大致持平並且收入增長時，這確實是推動利潤率影響的原因，特別是因為數字很小，所以肯定會更高一點。

Thank you.

謝謝。

Avi Steiner, JPMorgan.

阿維‧史坦納，摩根大通。

Thank you very much. I've got a couple of here. One, and just given the markets you're in, you may have touched on this, but curious how you think about the media and entertainment category, particularly as we move to the second half of the year and we strikes and some other issues. And then I had a couple more. Thank you.

非常感謝。我這裡有幾個。第一，鑑於您所在的市場，您可能已經觸及這一點，但很好奇您如何看待媒體和娛樂類別，特別是當我們進入今年下半年、我們罷工和其他一些問題時。然後我又吃了幾個。謝謝。

Yeah. I mean, I think media and entertainment obviously slowed us down in Q4 it was doing okay in Q1 and that was off of some, not great comps in Q1 of '23. That was before the strikes, but it just -- that had not been a particularly on strong quarter. And I think as it builds, I think we're going to see it continue to continue to perform. There's nothing that we're hearing that suggests a lot of softness. They're there, but are a lot of and what's the right word it is. So you don't you don't have the streaming wars going on right now. That was a high point in media and entertainment time.

是的。我的意思是，我認為媒體和娛樂在第四季度明顯拖慢了我們的速度，在第一季表現還不錯，但在 23 年第一季的一些表現不佳。那是在罷工之前，但這並不是一個特別強勁的季度。我認為隨著它的建立，我們將看到它繼續發揮作用。我們沒有聽到任何表明有太多軟弱的聲音。它們在那裡，但是數量很多，正確的單字是什麼？所以你不知道，現在還沒有串流媒體大戰。那是媒體和娛樂時代的高峰。

So it's not going to be as vibrant as that era, but without the strikes going and with a pretty good release schedule, the movie part of media and entertainment looks like it should be solid through the year. I think the streaming content and television parts of it are a little more idiosyncratic and you have to get company by company and the book of products that each of those companies have. And so you're going to have puts and takes within that. But I think it will be a growth category for us this year, Avi. That would be top line how I'd characterize it.

因此，它不會像那個時代那樣充滿活力，但如果沒有罷工，並且有了相當好的發行時間表，媒體和娛樂的電影部分看起來應該會在這一年保持穩定。我認為串流內容和電視部分有點特殊，你必須逐一公司以及每家公司擁有的產品手冊。所以你會在其中有看跌期權和索取期權。但我認為這將是我們今年的一個成長類別，Avi。這將是我對它的最重要的描述。

Appreciate that. And then just on Europe-North even with some puts and takes, it seems to be performing quite well, (inaudible) comments in the opening about some buoyancy there. And I'm just curious how that backdrop might be impacting the process you're going through there, if at all. And how you think about those assets? And then I have one more. Thank you.

感謝。然後，就在歐洲北部，即使有一些看跌期權和看跌期權，它似乎也表現得相當不錯，（聽不清楚）在開頭評論說那裡有一些浮力。我只是好奇這種背景會如何影響你正在經歷的過程（如果有的話）。您如何看待這些資產？然後我還有一個。謝謝。

Yeah. I mean, I think I would not look at near term or short-term performance being a direct factor in how things sort out, if anything, it supports the dialogue. It makes the perceived value of the assets to us go up every time that the performance goes up. And so that's a on a factor that comes into play. But we've been real clear that our intention is to become a US focused business. So the fact that it's performing well, I am extrapolating from your question a little bit, Avi, the things you've asked me in times past, it hasn't at all in any way changed our intention on that.

是的。我的意思是，我認為我不會將近期或短期表現視為事情如何解決的直接因素，如果有的話，它支持對話。每當績效上升時，我們對資產的感知價值就會上升。所以這是一個起作用的因素。但我們非常明確，我們的意圖是成為一家專注於美國的企業。事實上，它表現良好，我從你的問題中推斷出一點，阿維，你過去問過我的事情，它根本沒有以任何方式改變我們對此的意圖。

And as I said in the in the opening script comments, we are in negotiations with that with a buyer at this point. And I'm not going to go into any more detail on that in case anyone else wants to ask on that one. That's what you're get. But the process is progressing. I think, you know, strong performance supports that, as we work through it, but it's not going to change the answer or the viewpoint on what our portfolio should look like downstream.

正如我在開場腳本評論中所說，我們目前正在與買家進行談判。我不會詳細討論這一點，以防其他人想問這個問題。這就是你得到的。但這一進程正在取得進展。我認為，你知道，當我們努力解決這個問題時，強勁的業績支持了這一點，但這不會改變答案或我們的投資組合下游應該是什麼樣子的觀點。

No, that's a great place for me to leave. And I'll turn it over. Thank you very much for the time everyone.

不，那是我離開的好地方。我會把它翻過來。非常感謝大家抽空。

Thanks, Avi.

謝謝，阿維。

Lance Vitanza, Cowen.

蘭斯·維坦扎，考恩。

Hi. Thanks for taking the questions and great quarter. The Norway contract loss that you called out, in the prepared remarks, could you give us just a little bit more detail? I mean, I know that this asset is ultimately going away, but I'm just curious, what was this contract? Who do you lose it to? Had the contract been profitable? Did you did you let the contract go or was this a disappointing loss for you? And then maybe most importantly, does it impact your ability to sell Norway one way or the other? Thanks.

你好。感謝您提出問題和精彩的季度。您在準備好的發言中提到的挪威合約損失，您能給我們更多細節嗎？我的意思是，我知道這項資產最終會消失，但我只是很好奇，這份合約是什麼？你輸給誰了？這份合約是否有利可圖？你是放棄了合約還是這對你來說是一個令人失望的損失？然後也許最重要的是，這是否會影響您以某種方式推銷挪威的能力？謝謝。

So I'm going to ask Justin to opine on Norway, on that particular contract.

因此，我將請賈斯汀就挪威的特定合約發表意見。

Yeah, sure. Thanks, Scott. So this was a transit contracts are centered around the Oslo Metro. So it was a relatively big contract for us relatively low margin. We lost it in a public tender, it's always the case for the contract, you're only willing to bid the level to which you're willing to bid to make it worthwhile doing it. We bid to the level that we were very happy with. We didn't win the contract. The contract was won by JCDecaux. And we then move on to our Plan B and continue to grow the business. So like I said, it was a lower margin contract. We have plans to replace it with a smaller higher-margin contracts and those plans are going well.

好，當然。謝謝，斯科特。所以這是一個以奧斯陸地鐵為中心的交通合約。因此，對於我們相對較低的利潤率來說，這是一份相對較大的合約。我們在公開招標中失敗了，合約總是如此，你只願意出價到你願意出價的水平，以使其值得這樣做。我們出價到了我們非常滿意的水平。我們沒有贏得合約。該合約由德高集團贏得。然後我們繼續實施 B 計劃並繼續發展業務。正如我所說，這是一份利潤率較低的合約。我們計劃用規模較小、利潤率較高的合約取代它，這些計劃進展順利。

Great, thanks. And then, Scott, you talked quite a bit about Hollywood, but the Bay Area and Silicon Valley, I think it also been a particular soft spot for advertisers as of late, but likely recovering or how far back is your business in that region? Is it 80% back, is it 90% back? And if you could distinguish between what you saw in the first quarter and then what you're seeing today as we sit here in May, if there's been any additional change? Thanks.

萬分感謝。然後，斯科特，你談了很多關於好萊塢的事情，但灣區和矽谷，我認為這也是廣告商最近特別喜歡的地方，但可能正在復蘇，或者你在該地區的業務有多遠？是返還80%還是返還90%？您能否區分您在第一季看到的情況和我們今天五月坐在這裡看到的情況，是否有任何其他變化？謝謝。

Yeah. I mean, we have a really enormous footprint over the Bay area, all the way from Silicon Valley up through San Francisco into Oakland and then into the surrounds. And I'd tell you that -- when you talk about percent back, it's been a little bumpy throughout its history, San Francisco has been a boom and bust city and it busted hard in COVID, but it actually came back, and it really boomed when it came back, and it came back very strong in '21 and '22 until the latter part of '22. And then you started having the whole narrative about downtown San Francisco and homelessness and lawlessness and shoplifting and retailers leaving and all those things that came out in late '22 into early '23.

是的。我的意思是，我們在灣區的足跡非常巨大，從矽谷一直到舊金山，再到奧克蘭，然後再到週邊地區。我想告訴你，當你談論回歸百分比時，整個歷史都有點坎坷，舊金山一直是一個繁榮和蕭條的城市，在新冠疫情中遭受重創，但它實際上回來了，而且真的當它回來時就蓬勃發展，並且在21年和22年強勢回歸，直到22年下半年。然後你開始了解舊金山市中心的整個故事，無家可歸、無法無天、商店行竊、零售商離開以及所有這些在 22 世紀末到 23 年初出現的事情。

And the city has done a number of things since then, including a number of ballot initiatives passing, increasing policing and working to get streets cleaned up. I think to characterize it as like a percentage back is hard for me to do because it is not anywhere near its full potential right now, but its back to growing and it's moving in the right direction. And I would tell you that tech, in particular, that vertical in the city is coming back very nicely and that we're definitely seeing positivity from out of that market.

從那時起，該市做了很多事情，包括透過多項投票倡議、加強警力以及努力清理街道。我認為將其描述為百分比回歸對我來說很難做到，因為它目前尚未接近其全部潛力，但它又恢復成長並且朝著正確的方向前進。我想告訴你，科技，特別是城市中的垂直科技正在很好地回歸，我們肯定會看到該市場的積極性。

But I think it's going to be a little while still until national advertisers decide that they want to weigh in. And national advertisers have always been an important part of the media mix there. It's a really interesting dynamic because if you think about where a lot of our like street furniture assets are in the city which are some of the assets that have been hit hardest, the neighborhoods in San Francisco are actually doing incredibly well. They like main streets in Noe Valley or in the Marina or Cow hollow, the various neighborhoods. The neighborhoods are doing really, really well, where there's a perceived softness and there are some actual softness, although I go to San Francisco a couple of times every year.

但我認為，在全國廣告商決定參與其中之前，還需要一段時間。全國性廣告商一直是當地媒體組合的重要組成部分。這是一個非常有趣的動態，因為如果你考慮城市中許多類似的街道設施資產（這些資產是受打擊最嚴重的資產），舊金山的社區實際上表現得非常好。他們喜歡諾伊谷（Noe Valley）、碼頭（Marina）或牛谷（Cow Hollow）以及各個街區的主要街道。儘管我每年都會去舊金山幾次，但這些社區的表現真的非常非常好，有一種明顯的柔軟性，也有一些實際的柔軟性。

And I'd tell you it is considerably better now than it was two years ago. So I feel good about the trend line. The cities on, I feel good that our team, our local team in particular, has really stepped up and is taking on the challenge of covering for those national advertisers, not being as vibrant there. And I think we see we see good things ahead for San Francisco.

我想告訴你，現在比兩年前好多了。所以我對趨勢線感覺良好。在城市，我感覺很好，我們的團隊，特別是我們的本地團隊，確實加強了，正在接受覆蓋那些全國性廣告商的挑戰，而不是在那裡充滿活力。我認為我們看到了舊金山未來的美好前景。

Great. Thanks so much.

偉大的。非常感謝。

Thanks, Lance.

謝謝，蘭斯。

Aaron Watts, Deutsche Bank.

亞倫‧瓦茨，德意志銀行。

Hi, eveyone. Thanks for having me on. One follow-up on the national ad performance, which obviously was quite good in the quarter. I'm curious Scoot, your view on the recent introduction of several ad-supported streaming offerings, providing more targeted video inventory? Do you see that as a potential headwind at all for your business here in the US?

大家好。謝謝你邀請我參加。全國廣告表現的後續行動，本季的表現顯然相當不錯。我很好奇酷航，您對最近推出的幾種支援廣告的串流媒體產品（提供更有針對性的影片庫存）有何看法？您認為這對您在美國的業務來說是一個潛在的阻力嗎？

You know, I don't think so. And part of why I don't think so is because I think there are an enormous threat to linear TV, and linear TV is struggling. I think what they might do is they might prevent us participating in the transition of advertisers out of linear TV as much as we might have otherwise.

你知道，我不這麼認為。我不這麼認為的部分原因是我認為線性電視面臨著巨大的威脅，而線性電視正在苦苦掙扎。我認為他們可能會阻止我們參與廣告商從線性電視的轉型，就像我們本來可以做的那樣。

So I guess in that in that regard, it is a bit of a challenge. But overall, I don't think that they're a particular threat and us. I think they just speak to and it's one of the real frustrations in the US because is that linear TV transition in the rest of the world. It's true in LatAm, it's true in Europe.

所以我想在這方面，這是一個挑戰。但總的來說，我不認為他們和我們構成特別的威脅。我認為他們只是在談論，這是美國真正的挫折感之一，因為世界其他地方的電視節目是線性轉型的。在拉丁美洲是這樣，在歐洲也是如此。

We are seeing money coming out of linear TV and going on to our assets in international markets to a degree that we are not seeing it as much here and we're seeing some here. But the magnitude of it in international markets is much higher and it's a lot of the same brands. And so it's just interesting that the brands gravitate to out-of-home more and in other markets than the US.

我們看到資金從線性電視流出，並流向我們在國際市場上的資產，其程度是我們在這裡看不到的，但我們在這裡看到了一些。但它在國際市場上的規模要高得多，而且有很多相同的品牌。因此，有趣的是，這些品牌更傾向於戶外市場以及除美國以外的其他市場。

Some of it is they do like the street furniture asset that's a little closer to point of sale. But when we look at it analytically, the impact of the roadside is similar to what the impact of street furniture is for many use cases. So it's a little bit of a head scratcher to us that more of that linear TV money doesn't come here in the US, but that's the dynamic. So I don't think it's a huge threat and it is in some ways an opportunity because they are promoting these ads served businesses are signs so there's opportunity in there, too.

其中一些原因是他們確實喜歡距離銷售點更近的街道設施資產。但當我們分析地看待它時，路邊的影響與街道設施對許多用例的影響類似。因此，對我們來說，更多的線性電視資金並沒有流入美國，這有點令人頭疼，但這就是動態。所以我不認為這是一個巨大的威脅，在某些方面它是一個機會，因為他們正在推廣這些廣告服務的企業是跡象，所以那裡也有機會。

That's a helpful perspective. If I could ask one last question. Just around the capital structure. You've highlighted all the work you've done to extend out maturities. You've got a clear runway for the next couple of years. Given the current rate environment, do you take a pause on that front now? And then, relatedly, any other levers aside from growth in the business that we should be thinking about over the near-term horizon to accelerate the deleveraging process?

這是一個很有幫助的觀點。如果我可以問最後一個問題的話。就圍繞資本結構而言。您已經強調了為延長期限所做的所有工作。未來幾年你將擁有一條暢通無阻的跑道。考慮到目前的利率環境，您現在會在這方面暫停一下嗎？那麼，與此相關的是，除了業務成長之外，我們在短期內還應該考慮哪些其他槓桿來加速去槓桿化？

From what you're saying as we've pushed out maturities there we're obviously extremely pleased with what went on in the month of March, pushing out B.V. notes to 2027, which obviously would be tied to the process that we're running overseas in Europe that Scott mentioned earlier. But look, we are always going to monitor the market and we saw that opportunity in March, and we went forward and I think it was very successful from our standpoint where rates have honestly have gone since that point in time, the opportunities not there.

從你所說的情況來看，我們已經推遲了到期日，我們顯然對 3 月份發生的事情非常滿意，將 B.V. 票據推遲到 2027 年，這顯然與我們正在運行的流程有關斯科特之前提到的歐洲海外。但看，我們總是會監控市場，我們在三月看到了這個機會，我們繼續前進，我認為從我們的角度來看，這是非常成功的，自那時以來，利率確實已經消失，機會不存在。

But look, we will monitor the market if there's an opportunity to lower our cost of debt we will -- obviously, we'll look at it, but the economics have to be compelling. When you're thinking about deleveraging, you're obviously pushing out our maturities. 2027, 2028, that really gives us that runway from an EBITDA standpoint to really grow the business.

但看，我們將監控市場，如果有機會降低我們的債務成本，我們會——顯然，我們會關注它，但經濟必須令人信服。當你考慮去槓桿化時，你顯然會推遲我們的期限。 2027 年、2028 年，從 EBITDA 的角度來看，這確實為我們提供了真正發展業務的跑道。

And as we go through the proceeds in Europe and as those proceeds come out, some of those proceeds will obviously goes to the B.V. notes, or the B.V. term loan as it is today. And then the remaining proceeds can be -- we have 18 months to reinvest in the business either through CapEx or acquisitions. So I think there will be options at that point in time to take a look at it.

當我們審查歐洲的收益以及這些收益的發放時，其中一些收益顯然將流向 B.V. 票據，或像今天一樣用於 B.V. 定期貸款。然後剩餘的收益可以是——我們有 18 個月的時間透過資本支出或收購對業務進行再投資。所以我認為到那時會有一些選擇來看看它。

Yeah. And I think to the other part of your question of what to look for, I think we've been pretty clear that we've had a lot of our structuring and deal creativity focused on Europe and on the international divestitures for the last couple of years. As we successfully work our way through those processes that capacity will become available to us in the US. And there's a lot of interest in this sector and a lot a lot of different ideas that come our way.

是的。我認為，對於你要尋找什麼的問題的另一部分，我認為我們已經非常清楚，我們的許多結構和交易創造力都集中在歐洲和過去幾年的國際資產剝離上。當我們成功地完成這些流程時，我們將在美國獲得產能。人們對這個領域很感興趣，我們也提出了許多不同的想法。

And I think as we simplify and clarify the business, our ability to do something creative is good, but I'm not going to direct you as to what that creative thing might be because as you are very well aware, the variety of things that we could do is broad. And you should just expect that the creative energy that we've been expending to position ourselves for the divestitures we've been working on is energy that we'll be able to deploy on working on structuring things here in the US downstream.

我認為，當我們簡化和澄清業務時，我們做一些創造性事情的能力是好的，但我不會指導你創造性的事情可能是什麼，因為正如你非常清楚的那樣，各種各樣的事情我們能做的事情很廣泛。你應該期望我們一直在為我們一直致力於的資產剝離而花費的創造性能量，我們將能夠將這些能量用於在美國下游建立事物。

Great. Thanks, Scott. Thanks, Dave.

偉大的。謝謝，斯科特。謝謝，戴夫。

David Karnovsky, JPMorgan.

大衛卡諾夫斯基，摩根大通。

Alright, thank you. This is Ted on for David. I have two questions. The first is on the 2024 AFFO guide. I just wanted to ask about the source of the upside there relative to keeping revenue and EBITDA the same. Is that primarily from Q1 flowing through to the full year? Or is there anything?

好的，謝謝。這是特德為大衛介紹的。我有兩個問題。第一個是 2024 年 AFFO 指南。我只是想問一下相對於維持收入和 EBITDA 不變而言的上升空間的來源。這主要是從第一季流向全年嗎？或有什麼嗎？

No, there's really nothing major there. It's just us refining our estimates. There was really an adjustment in our deferred tax asset, which flows through to that calculation from an overall tax standpoint, our cash taxes, which are minimal for the year, mostly focused around in the international and in the US, local and state. I don't see any major differences from what we paid last year from a cash standpoint and our projections for 2024.

不，那裡確實沒什麼大不了的。這只是我們改進我們的估計。我們的遞延稅資產確實進行了調整，從整體稅收的角度來看，我們的現金稅是最小的，主要集中在國際和美國、地方和州的計算中。從現金角度來看，我認為我們去年支付的費用和我們對 2024 年的預測沒有任何重大差異。

Got it. Thank you. And then I wanted to ask on programmatic, just wanted to ask about the source of strength for the quarter end expectations moving forward.

知道了。謝謝。然後我想問程序化的問題，只是想問季度末預期的力量來源。

Ladies and gentlemen, please standby. We're experiencing technical difficulties. Our conference will resume momentarily. Thank you. Please continue with your question.

女士們、先生們，請等候。我們遇到技術困難。我們的會議將立即恢復。謝謝。請繼續你的問題。

Hey Ted, sorry, we lost you as you were starting your second question, I'm not sure we had a little power surge or something knocked us out of our line, but we're back.

嘿，特德，抱歉，當你開始第二個問題時，我們失去了你，我不確定我們有一點電湧或什麼東西把我們從我們的線路中擊倒，但我們回來了。

Okay, great. Yeah, the question was basically about Q1 programmatic strengths and the source of that and what your expectations are for programmatic for the rest of the year?

好的，太好了。是的，問題基本上是關於第一季的程序化優勢及其來源，以及您對今年剩餘時間程序化的期望是什麼？

So programmatic has been ramping pretty well since September, October last year and there's a variety of drivers behind it. At least one of the growth programmatic accounts right now is actually coming off of direct business. And so that's something we haven't seen broadly. And so there's a little bit of, you know, it's coming out of the left pocket in the right pocket and that is part of what's going on.

自去年九月、十月以來，程序化交易一直在蓬勃發展，背後有各種各樣的驅動因素。目前至少有一個成長的程序化帳戶實際上是來自直接業務。所以這是我們還沒有廣泛看到的。所以有一點，你知道，它從左口袋流到右口袋裡，這就是正在發生的事情的一部分。

But I think the broader thing is that you've had the Trade Desk mainstream out-of-home and DV360 is in the process of mainstreaming out-of-home. And what that means is that your two biggest omnichannel DSPs are offering digital out-of-home in their on a base trading platform. And so we get consideration that way. And I think that's at least part of what's going on in addition to outreach to clients, there are a number of partners that we've had some really good success, bringing new advertisers to the category. So it's a variety of factors behind it. I don't think that the growth rate will stay as high as it's been the last couple of quarters for the whole year. But I do think we expect it will be a double-digit growth rate. It just won't be as high as it's been in Q4 and Q1.

但我認為更廣泛的事情是，Trade Desk 已經成為戶外產品的主流，而 DV360 正在成為戶外產品的主流。這意味著您的兩個最大的全通路 DSP 正在其基礎交易平台上提供數位戶外服務。所以我們透過這種方式得到考慮。我認為這至少是我們正在發生的事情的一部分，除了與客戶的接觸之外，我們還有許多合作夥伴取得了一些非常好的成功，為該類別帶來了新的廣告商。所以這背後是有多種因素的。我認為全年的成長率不會像前幾季那麼高。但我確實認為我們預計這將是兩位數的成長率。只是不會像第四季和第一季那麼高。

Jim Goss, Barrington Research.

吉姆‧戈斯，巴靈頓研究中心。

Hi, thank you. The movie advertising is going to be very immediate, obviously. Just coming out of CinemaCon, there's a lot of enthusiasm for '25 and '26 with return of film flow, but a very current tough environment over the next couple of quarters. I'm wondering how big a drag do you think that can be and what your optimism is for next year? And also, the mix of small screen versus big screen in terms of importance to your markets? I think it's mostly big screen but tell me otherwise.

嗨，謝謝你。顯然，電影廣告將非常直接。剛從 CinemaCon 出來，隨著電影流量的回歸，人們對 25 和 26 年充滿熱情，但未來幾季的環境非常艱難。我想知道您認為這會帶來多大的阻力以及您對明年的樂觀程度如何？另外，小螢幕與大螢幕的組合對您的市場的重要性如何？我認為主要是大螢幕，但請告訴我不然。

Okay. Thanks, Jim. No, you're absolutely right. We are more big screen oriented. We get some small screen, but that's not the prevalent part of our mix. I think we -- your characterization of the release schedule is maybe a little darker than what I hear, but I'm not disputing the '24 will not be as good as '25. So I do think that this is something that can be a multi-quarter positive category for us. It's not an enormous part of our book. So, I don't think I would characterize it as it's going to make or break how '24 goes or what '25 can be.

好的。謝謝，吉姆。不，你說得完全正確。我們更注重大螢幕。我們有一些小螢幕，但這不是我們組合中普遍存在的部分。我認為我們——你對發佈時間表的描述可能比我聽到的要暗一些，但我並不認為 '24 不會像 '25 那樣好。所以我確實認為這對我們來說可能是一個多季度的積極類別。這並不是我們書中的很大一部分。所以，我不認為我會描述它，因為它會決定「24」的發展或「25」的發展。

But with the political year where we don't get a ton of direct political, although we are working very hard on that, but we don't have a lot of direct political built into our guide. So that would be upside for us in '24. If we actually cracked that one. But with a year that has political, we're going to see overflow coming to us of people that are getting crowded out in the TV space or that want to find other ways to reach audiences that are fatigued with the 17th on a political ad in a row on the brakes in their sports that they're watching.

但是在政治年中，我們沒有得到大量的直接政治內容，儘管我們正在努力工作，但我們的指南中並沒有太多直接的政治內容。所以這對我們 24 年來說是有利的。如果我們真的破解了那個。但是，在充滿政治色彩的一年裡，我們將看到大量的人在電視領域被排擠，或者想要找到其他方式來吸引那些對 17 日的政治廣告感到厭倦的觀眾。中的一排煞車。

So movies can be a welcome growth driver in 2025. And I think we share your optimism for how that release schedule is going to look and that should help offset some of the political comp that we build this year into next year. But again, it's not going to make or break our business.

因此，電影可能會成為 2025 年受歡迎的成長動力。我認為我們和您一樣對發佈時間表的前景持樂觀態度，這應該有助於抵消我們今年和明年建立的一些政治競爭。但同樣，它不會成就或破壞我們的業務。

Okay, thanks. The other area I'd like to touch on briefly if I got it straight, you said, Airport margin should probably be high-teens business in general but can vary quite a bit. And I wonder if you might talk a little about that and drivers you think are important in terms of either travel trends, the volume of the travelers' business versus personal and how that's going to affect the revenue side and what you think might be impactful in terms of the expense side?

好的謝謝。如果我明白的話，我想簡單談一下另一個領域，你說，機場利潤率總體上應該是高十幾歲的業務，但可能會有很大差異。我想知道您是否可以談談這個問題以及您認為在旅行趨勢方面重要的驅動因素、旅行者的商務量與個人量以及這將如何影響收入方面以及您認為可能會產生影響的因素費用方面？

So let me let me start on the revenue side and then I'll let Dave begin on the expense side. We really have changed how we sell airports over the last few years. We have become more focused on creating experiences that are particularly compelling for advertisers, whether that's doing sampling or other on-site experiences taking over different assets like tunnels between terminals. We've done that in a number of airports. And so what you've seen the last 18 months has been the progression of us just getting better at monetizing those assets. And that's something that I'm challenging the team to apply some of that same thinking to our roadside assets. And we're starting to see some experiments along those lines playing out.

因此，讓我從收入方面開始，然後讓戴夫從支出開始。在過去的幾年裡，我們確實改變了銷售機場的方式。我們更專注於創造對廣告商特別有吸引力的體驗，無論是進行採樣還是接管不同資產（例如航站樓之間的隧道）的其他現場體驗。我們已經在許多機場做到了這一點。因此，您在過去 18 個月中看到的是我們在將這些資產貨幣化方面取得了更好的進展。這就是我向團隊提出的挑戰，要求他們將同樣的想法應用在我們的路邊資產上。我們開始看到一些類似的實驗正在進行中。

But I think that the driver -- so building out New York only was a big part of the driver. New York is largely built, although there will be meaningful projects as LaGuardia. Some of the LaGuardia terminals finish, some of the JFK terminals finish because they're still they're still renovation going on there. So there should be some more juice in just the expansion of that footprint. We've gotten much more strategic about where we deploy assets in different airports, and that's been a tailwind of what's gone on. And you're going to have that pretty consistently. And until we get to where we have -- the next big step back in airports will be when we lose a big contract, which inevitably at some point, we will.

但我認為，驅動因素 - 所以只建造紐約是驅動因素的重要組成部分。紐約已基本建成，儘管也會有像拉瓜迪亞這樣有意義的計畫。一些拉瓜迪亞航站樓竣工，一些肯尼迪航站樓竣工，因為它們仍然正在進行翻新。因此，僅僅擴大足跡就應該有更多的成果。我們對於在不同機場部署資產的位置變得更具戰略性，這是所發生的事情的順風車。而你會一直保持這種狀態。在我們達到目前的水平之前，機場的下一個重大退步將是我們失去一份大合同，而在某些時候，我們不可避免地會失去這份合約。

There's nothing that we can see in front of us right now that we think is headed that way. And we've had good fortune doing direct extensions, but that's the nature of that business. At some point, we will take a step back in one of the big airports that we're in and done, and that will be a headwind. I think in terms of the actual travelers and who the advertisers are trying to reach, we had done a really nice job of getting people bought into the idea that even if people were pleasure travelers, they still represented very attractive demographics within business decision making.

現在我們面前看不到任何東西，我們認為沒有任何東西會朝那個方向發展。我們很幸運地進行了直接擴展，但這就是該業務的本質。在某些時候，我們將在我們已經進入並完成的大型機場之一中後退一步，這將是一種逆風。我認為，就實際旅行者和廣告商想要接觸的人群而言，我們做得非常好，讓人們相信，即使人們是休閒旅行者，他們在商業決策中仍然代表著非常有吸引力的人口統計數據。

And as business travel has come back and business travel is getting back close to where it was pre-pandemic, that has been like a cherry on top for us because for certain airports gives you really nice uplifts as the business traveler comes back. And so that's been part of the revenue story too. But those are the big drivers different selling ongoing expansion of our digital assets and the traveler continuing to come back and continue to be a super attractive premium target.

隨著商務旅行的回歸，商務旅行正在恢復到接近大流行前的水平，這對我們來說就像是錦上添花，因為對於某些機場來說，當商務旅行者回來時，會給你帶來非常好的提振。所以這也是收入故事的一部分。但這些是我們數位資產持續擴張的主要驅動力，旅行者不斷回來並繼續成為超級有吸引力的優質目標。

Dave, you had talk to expenses.

戴夫，你談到了費用。

Sure expenses, I would say is definitely simpler than from a revenue standpoint, obviously there's a lot of drivers going into the fantastic revenue growth we've been seeing over the last several quarters. But from an expense standpoint, the airports business, their biggest expenses, site lease. What we pay to the airport authorities for the assets that we have in the airports. And when you think about that site leads, some of our most of our contracts are a percent rent. The larger airports have a higher percent rent -- the smaller airports, a slightly lower.

我想說，從收入的角度來看，當然費用肯定比收入更簡單，顯然有許多驅動因素推動了我們在過去幾個季度看到的驚人的收入成長。但從費用的角度來看，機場業務最大的開支是場地租賃。我們為機場擁有的資產向機場當局支付的費用。當你考慮到該網站的潛在客戶時，我們的大多數合約中的一些都是百分比租金。較大的機場的租金百分比較高，而較小的機場則略低。

So your revenue mix actually has a big component of what your margins are going to be. And right now, I mean, we're performing really well across all those factors, which is really helping from a margin standpoint. And we also have a few airports that are fixed mag. So if you drive revenue above that, that's going to drop right down to the bottom line. We definitely experienced that in the first quarter. And then I'll go back to the relief that we are continually getting and we're going to get that throughout 2024 to a lesser extent than what we had in '23. But those are two of the main factors that are really driving it from an expense standpoint. But as that revenue grows, you are going to have margin expansion and that's what we are seeing.

因此，你的收入組合實際上對你的利潤率有很大的影響。我的意思是，現在我們在所有這些因素上都表現得非常好，從利潤的角度來看，這確實很有幫助。我們還有一些固定磁力的機場。因此，如果你的收入超過這個數字，那麼收入就會直接下降到底線。我們在第一季確實經歷過這一點。然後我會回到我們不斷獲得的緩解，我們將在整個 2024 年獲得這種緩解，但程度會比 23 年時還要小。但從費用的角度來看，這是真正推動這一趨勢的兩個主要因素。但隨著收入的成長，利潤率將會擴大，這就是我們所看到的。

Great. Thank you very much. Appreciate it.

偉大的。非常感謝。欣賞它。

Thank you, Jim.

謝謝你，吉姆。

Thank you. At this time, I'd like to turn the floor back to Scott for closing comments.

謝謝。現在，我想請斯科特發表最後評論。

Great. Thank you, Rob, and thank you to all of our questioners and for putting up with our little technical glitch there. I'm sorry for that brief window of silence. We appreciate your attention. We feel good about the year and look forward to seeing you all or many of you in upcoming events in the coming weeks. Take care.

偉大的。謝謝你，羅布，也謝謝我們所有的提問者，謝謝你們容忍我們的小技術故障。我對那短暫的沉默感到抱歉。感謝您的關注。我們對這一年感覺良好，並期待在未來幾週即將舉行的活動中見到你們所有人或許多人。小心。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, we thank you for your participation and have a wonderful day.

謝謝。今天的會議到此結束。此時您可以斷開線路，我們感謝您的參與，祝您有個愉快的一天。