Clear Channel Outdoor Holdings Inc (CCO) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Clear Channel Outdoor Holdings Inc 2024 third quarter earnings conference call. At this time. All participants are in a listen-only mode, a question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to your host, Eileen mclaughlin, Vice President Investor Relations. Please go ahead.

女士們先生們，謝謝你們的支持。歡迎參加 Clear Channel Outdoor Holdings Inc 2024 年第三季財報電話會議。此時。所有參與者均處於僅聽模式，正式演示後將進行問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。提醒一下，本次會議正在錄製中。現在我將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 Sailor, our CFO. They will provide an overview of the 2024 third quarter operating performance of Clear Channel Outdoor Holdings Inc and Clear Channel International BV. We recommend you download the 2024 third quarter earnings presentation located in the financial information section of 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 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 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, October 31st 2024 and may no longer be accurate at the time of a replay.

早安，感謝您參加我們的通話。今天是我們的執行長 Scott Wells 和財務長大衛賽勒 (David Sailor)。他們將概述 Clear Channel Outdoor Holdings Inc 和 Clear Channel International BV 2024 年第三季的營運表現。我們建議您下載位於我們投資者網站財務資訊部分的 2024 年第三季收益演示文稿，並在介紹和審查我們的業績後在本次電話會議上查看該演示文稿。我們將開通提問熱線，Clear Channel 英國和歐洲首席執行官賈斯汀·科克倫 (Justin Cochrane) 將在我們開始之前與斯科特和戴夫一起參與電話問答部分。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中包含的風險聲明以及我們在今天的電話會議期間向美國證券交易委員會提交的文件。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 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 10 月 31 日）管理層的觀點，重播時可能不再準確。

Please see side four in the earnings presentation and I will now turn the call over to Scott.

請參閱收益報告的第四部分，我現在將把電話轉給斯科特。

Good morning everyone and thank you for taking the time to join us today. We delivered consolidated revenue of $559 million during the third quarter, representing an increase of 6.1% or 5.7% excluding movements in foreign exchange rates in line with our guidance and with growth across all our business segments.

大家早安，感謝您今天抽出時間加入我們。第三季我們實現了 5.59 億美元的綜合收入，根據我們的指引以及我們所有業務部門的成長，成長了 6.1% 或 5.7%（不包括匯率變動）。

Our Americas segment delivered growth across all regions driven in part by an improvement in national advertising airports continues to benefit from strong demand across all channels. And Europe North delivered another robust quarter with gains across the majority of the portfolio. We continue to see the benefits from our initiatives aimed at leveraging our technology investments and expanded sales teams to maximize our performance in the US.

我們的美洲業務在所有地區都實現了成長，部分原因是國家廣告機場的改善繼續受益於所有管道的強勁需求。北歐地區又迎來了一個強勁的季度，大部分投資組合都實現了成長。我們繼續看到旨在利用我們的技術投資和擴大的銷售團隊來最大限度地提高我們在美國的業績的舉措所帶來的好處。

Utilizing our digital expertise and our radar data analytics resources. We're making inroads into verticals that have traditionally not relied on out of home to reach their target audiences. For example, our recently announced partnership with Circana further strengthens our radar platform and provide CPG advertisers who under index in our industry with the ability to effectively deliver their message via out of home while measuring the impact of their campaigns on household purchasing behaviour.

利用我們的數位專業知識和雷達數據分析資源。我們正在進軍傳統上不依賴戶外來接觸目標受眾的垂直領域。例如，我們最近宣布與 Circana 合作，進一步加強了我們的雷達平台，並為我們行業中索引的 CPG 廣告商提供了透過戶外有效傳遞訊息的能力，同時衡量其廣告活動對家庭購買行為的影響。

In the Pharma vertical. We've now reached a point where we can share some really compelling results from past campaigns which is helping to open doors for us. We recently served as a sponsor at Digital Pharma East, one of the largest Pharma marketing conferences nationally. This was a first for us and the reception was promising. We are now at the table with numerous pharmaceutical companies and their agencies discussing potential campaigns in the year ahead with regard to our domestic footprint.

在製藥垂直領域。我們現在已經到了可以分享過去活動的一些真正令人信服的結果的地步，這有助於為我們打開大門。我們最近擔任 Digital Pharma East 的贊助商，這是全國最大的製藥行銷會議之一。這對我們來說是第一次，反應很好。我們現在與眾多製藥公司及其代理商一起討論未來一年有關我們國內足跡的潛在活動。

We're excited about the recent award of a large fifteen-year contract for roadside advertising assets controlled by the New York MTA this contract substantially expands our footprint in the New York tri state area and elevates our ability to deliver market wide programs for national and local advertisers in a complementary way.

我們很高興最近獲得了由紐約MTA 控制的路邊廣告資產的一份為期15 年的大型合同，該合同大大擴展了我們在紐約三州地區的足跡，並提高了我們為全國和地區提供市場範圍計劃的能力。

So we are making notable progress in pursuing our plan as we further scale our platform in the US and continue to focus on expanding our revenue sources which sets us up. Well as we look to close out the year and build on our momentum going into 2025 in the current quarter. We are continuing to see revenue growth in America.

因此，隨著我們進一步擴大我們在美國的平台並繼續專注於擴大我們的收入來源，我們在實施我們的計劃方面取得了顯著進展。我們希望在本季度結束這一年，並鞏固進入 2025 年的勢頭。我們繼續看到美國的收入成長。

Our airports business remains strong although we're now up against tougher comps. So the rate of growth will naturally moderate similar to the airports. Europe North is also up against tough comps and could post roughly flat revenues in the quarter. As I noted on our last call, we believe we are turning the corner on cash generation. AFFO exceeded discretionary CapEx in the third quarter, and we expect the same in the fourth quarter with continued improvement into 2025. We believe this creates the option to start to organically reduce our debt. A central goal in our focus on enhancing shareholder value.

儘管我們現在面臨更嚴峻的競爭，但我們的機場業務仍然強勁。因此，成長率自然會放緩，類似機場。北歐也面臨嚴峻的競爭，本季的營收可能大致持平。正如我在上次電話會議中指出的那樣，我們相信我們正在扭轉現金產生的困境。AFFO 在第三季度超過了可自由支配的資本支出，我們預計第四季也將達到相同的水平，並持續改善到 2025 年。我們相信這創造了開始有機減少債務的選擇。我們專注於提高股東價值的核心目標。

On the M&A front, Negotiations for the sale of Europe North are continuing and we remain committed to exiting Europe at a price that reflects the value being delivered by this business.

在併購方面，出售北歐業務的談判仍在繼續，我們仍然致力於以反映該業務所提供價值的價格退出歐洲。

Additionally, you may have seen that JCdecaux terminated its agreement to acquire our Spanish business after deciding to withdraw its regulatory filing with the Spanish competition regulator. Our understanding is that the regulatory commitments exceeded what JCdecaux was willing to pursue the good news is that our Spanish business continued to perform well throughout the process and we are well positioned to bring it back to market in the relatively near future. Lastly, our LATAM sale process is ongoing and we will provide further updates in due course.

此外，您可能已經看到，德高集團在決定撤迴向西班牙競爭監管機構提交的監管備案後，終止了收購我們西班牙業務的協議。我們的理解是，監管承諾超越了德高集團願意追求的目標，好消息是我們的西班牙業務在整個過程中繼續表現良好，並且我們有能力在相對不久的將來將其帶回市場。最後，我們的拉丁美洲銷售流程正在進行中，我們將在適當的時候提供進一步的更新。

So overall, we're pleased with the progress we are making on multiple fronts. And I'd like to thank our company wide team, especially in Europe and Latin America for their continued commitment to executing on our strategic road map and pursuing our long term vision with that. Let me hand the call over to Dave.

總的來說，我們對在多個方面取得的進展感到滿意。我要感謝我們全公司的團隊，特別是歐洲和拉丁美洲的團隊，感謝他們繼續致力於執行我們的策略路線圖並以此追求我們的長期願景。讓我把電話轉給戴夫。

Thanks Scott. 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.

謝謝斯科特。請參閱投影片 5，了解我們的結果概述，以提醒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，我也會討論不包括外匯匯率變動的結果。非公認會計準則衡量標準。

We believe this provides a greater comparability when evaluating our performance, direct operating expenses and SG&A expenses include restructuring and other costs that are excluded. From adjusted EBITDA and segment adjusted EBITDA and the amounts I refer to are for the third quarter of 2024 and the percent changes are third quarter, 2024 compared to the third quarter of 2023 unless otherwise noted.

我們相信，在評估我們的業績、直接營運費用和銷售、一般管理費用（包括重組和排除的其他成本）時，這提供了更大的可比性。除非另有說明，調整後的 EBITDA 和部門調整後的 EBITDA 以及我提到的金額是 2024 年第三季的數據，百分比變化是 2024 年第三季與 2023 年第三季相比的情況。

Now on to the third quarter, reported results as Scott mentioned, consolidated revenue for the quarter was $559 million. A 6.1% increase excluding movements in foreign exchange rates. Consolidated revenue was up 5.7% loss from continuing operations and consolidated net loss which includes the loss from discontinued operations were both $32 million adjusted EBITDA for the quarter was $143 million. Up 2.6% and adjusted EBIDA excluding movements in foreign exchange rates was up 1.9% from the prior year.

現在進入第三季度，正如史考特所提到的，報告結果顯示，該季度的綜合收入為 5.59 億美元。扣除外匯匯率變動後，成長 6.1%。持續經營業務帶來的綜合收入成長了 5.7%，綜合淨虧損（包括終止經營業務的虧損）均為 3,200 萬美元，本季調整後 EBITDA 為 1.43 億美元。成長 2.6%，調整後的 EBIDA（不包括匯率變動）較上年成長 1.9%。

AFFO was $27 million in the third quarter. A 9.1% increase from the prior year excluding movements in foreign exchange rates. AFFO was up 5.5% on to slide. Six, the America segment third quarter results, America revenue was $293 million. Up 5% with revenue up in all regions driven by increased demand for both digital and printed billboards and the deployment of new digital billboards, digital revenue which accounted for 36.1% of America revenue was up 8.4% to $106 million national sales which accounted for 36.3% of America revenue were up 8.4% on a comparable basis. Local sales accounted for 63.7% of America revenue and were up 3.2% on a comparable basis.

第三季 AFFO 為 2700 萬美元。不計匯率變動，較上年增長 9.1%。AFFO 下跌 5.5%。六、美洲分部第三季業績，美洲營收為2.93億美元。由於對數位和印刷廣告看板的需求增加以及新數位廣告看板的部署，所有地區的收入增長了5%，數位收入占美國收入的36.1%，增長了8.4%，達到1.06 億美元，全國銷售額佔36.3%占美國營收的百分比以可比計算成長了 8.4%。本地銷售占美國收入的 63.7%，年增 3.2%。

Direct operating and SG&A expenses were up 4.5% to $165 million due in part to lower property taxes in the prior year related to a legal settlement, as well as higher compensation costs and production expenses related. In part to increased revenue segment adjusted EBITDA was $128 million. Up 5.8% with a segment adjusted EBITDA margin of 43.8%. A slight improvement from the prior year. Please see slide 7 for a review of the third quarter results for airports, airports revenue was $82 million. Up 9% with strong advertising demand led by the Port Authority of New York and New Jersey airports digital revenue which accounted for 51.1% of airports revenue was up 0.8% to $42 million

直接營運和銷售、一般管理費用成長 4.5%，達到 1.65 億美元，部分原因是去年與法律和解相關的財產稅較低，以及相關補償成本和生產費用較高。部分原因是營收增加，調整後的 EBITDA 為 1.28 億美元。成長 5.8%，部門調整後 EBITDA 利潤率為 43.8%。較上年略有改善。請參閱投影片 7，以了解機場第三季業績回顧，機場營收為 8,200 萬美元。紐約港務局和新澤西機場數位收入佔機場收入的 51.1%，廣告需求強勁，成長 9%，成長 0.8%，達到 4,200 萬美元

National sales which accounted for 58.6% of airports revenue were up 8.7% on a comparable basis and local sales accounted for 41.4% of airports revenue and were up 9.3% on a comparable basis, direct operating and SG&A expenses were up 8.9% to $65 million. The increase is primarily due to site lease expense driven in part by higher revenue segment adjusted EBITDA was $17 million. Up 9% with a segment adjusted EBITDA margin of 20.6% in line with the prior year on to slide eight for a review of our performance in Europe. North.

全國銷售佔機場收入的 58.6%，年增 8.7%；本地銷售佔機場收入的 41.4%，年增 9.3%；直接營運和 SG&A 費用增加 8.9%，達到 6,500 萬美元。這一增長主要是由於場地租賃費用增加，部分原因是收入部門的調整後 EBITDA 為 1700 萬美元。回顧我們在歐洲的業績，部門調整後的 EBITDA 利潤率為 20.6%，與上年持平，年減 8%，成長 9%。北。

My commentary on Europe North is on results that have been adjusted to exclude movements in foreign exchange rates. Europe North revenue increased 8.6% to $162 million with revenue up in most countries due to increased demand. Most significantly in Sweden, partially offset by a loss of a transit contract in Norway digital accounted for 58.1% of Europe North total revenue and was up 12.4% to $94 million.

我對北歐的評論是針對經過調整以排除外匯匯率變動的結果。北歐收入成長 8.6%，達到 1.62 億美元，由於需求增加，大多數國家的收入增加。最顯著的是瑞典，部分被挪威運輸合約的損失所抵消，數字佔歐洲北部總收入的 58.1%，成長 12.4% 至 9,400 萬美元。

Europe North Direct operating and SG&A expenses were up 12% to $136 million due to higher site lease expense, property taxes and compensation as well as higher rental costs for additional digital displays. Europe north segment adjusted EBITDA was down 4.5% to $27 million and the segment adjusted EBITA margin was 16.7% but declined from the prior year. Moving on to CCBV on slide 9 clear channel International BV, which I will refer to as CCBV is an indirect, wholly owned subsidiary of the company and the borrower under the CCIBV term loan facility.

由於場地租賃費用、財產稅和補償費用增加，以及額外數位顯示器的租賃費用增加，歐洲北部的直接營運和銷售、一般管理費用增加了 12%，達到 1.36 億美元。歐洲北部部門調整後 EBITDA 下降 4.5%，至 2,700 萬美元，該部門調整後 EBITA 利潤率為 16.7%，但較上年下降。前往投影片 9 上的 CCBV Clear Channel International BV，我稱之為 CCBV 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。

CCIBV includes the operations of our Europe North and Europe south segments. And prior to September seventeenth, 2024 also included Singapore, which is included in other. The financial results of Singapore have historically been immaterial to the results of CCIBV. And revenue and expenses for the Singapore business were further reduced in the first quarter of 2024 due to the loss of a contract on September seventeenth, 2024, CCIBV sold its equity interest in the Singapore business to another indirect foreign wholly owned subsidiary of the company.

CCIBV 包括我們歐洲北部和歐洲南部部門的業務。而2024年9月17日之前還包括新加坡，被納入其他。新加坡的財務表現歷來對 CCIBV 的表現並不重要。而新加坡業務的收入和費用在2024年第一季進一步減少，原因是2024年9月17日合約遺失，CCIBV將其在新加坡業務的股權出售給公司另一家間接外資全資子公司。

As the current and former businesses in the Europe South segment are considered discontinued operations. Results of these businesses are reported as a separate component of consolidated net income in the CCIBV, consolidated statement of income for all periods presented and are excluded from the following results. CCIBV results from continuing operations for the third quarter of 2024 as compared to the same period of 2023 are as follows. CCIBV Revenue increased 8.1% to $166 million from $154 million excluding the $4 million impact of movements in FX. CCIBV revenue increased 5.4% as higher revenue from our Europe North segment, as I just mentioned was partially offset by the loss of a contract in Singapore.

由於歐洲南部地區目前和以前的業務被視為已終止業務。這些業務的業績作為 CCIBV 綜合淨利潤的單獨組成部分、所有期間的綜合損益表進行報告，並且不包括在以下業績中。CCIBV 2024 年第三季持續經營業績與 2023 年同期相比如下。CCIBV 營收成長 8.1%，從 1.54 億美元增至 1.66 億美元，不包括外匯波動帶來 400 萬美元的影響。CCIBV 收入成長了 5.4%，因為我們北歐部門的收入增加，正如我剛才提到的，部分被新加坡合約的損失所抵消。

CCIBV the operating income was $5 million compared to $9 million in the same period of 2023.

CCIBV 的營業收入為 500 萬美元，而 2023 年同期為 900 萬美元。

Now moving to slide 10 in our review of capital expenditures CapEx totalled $31 million in the third quarter. A decrease of $2 million over the prior year. Now on to slide 11 during the third quarter, cash and cash equivalents increased by $12 million to $201 million cash paid for interest during the third quarter. Decreased $2 million compared to the same period in the prior year.

現在進入我們對資本支出審查的幻燈片 10，第三季資本支出總計 3,100 萬美元。比上年減少200萬美元。現在進入第三季的幻燈片 11，第三季支付利息的現金和現金等價物增加了 1,200 萬美元，達到 2.01 億美元。與上年同期相比減少200萬美元。

Our liquidity was $376 million as of September thirtieth 2024 down $29 million compared to liquidity at the end of the second quarter due to the previously announced $34 million decrease in the borrowing limit of the revolving credit facility. Our debt was $5.7 billion as of September thirtieth 2024 in line with the second quarter, our weighted average cost of debt was 7.4% also in line with the second quarter.

截至 2024 年 9 月 30 日，我們的流動性為 3.76 億美元，與第二季末的流動性相比減少了 2,900 萬美元，原因是先前宣布的循環信貸額度借款限額減少了 3,400 萬美元。截至 2024 年 9 月 30 日，我們的債務為 57 億美元，與第二季持平，我們的加權平均債務成本為 7.4%，也與第二季持平。

As of September thirtieth ,2024 our first lien leverage ratio was 5.34 times. The credit agreement covenant threshold is 7.1 times now on to slide 12 and our guidance for the fourth quarter and the full year of all2,024 consolidated guidance and Europe North guidance excludes movements in foreign exchange rates. With the exception of capital expenditures and cash interest payments for the fourth quarter. We believe our consolidated revenue will be between $628 million and $653 million representing a decline of 1% to an increase of 3% over the same period of the prior year.

截至2024年9月30日，我們的第一留置權槓桿率為5.34倍。信貸協議契約門檻現在是幻燈片 12 的 7.1 倍，我們對第四季度和全年的所有 2,024 綜合指導和北歐指導不包括外匯匯率的變動。第四季的資本支出和現金利息支付除外。我們認為，我們的綜合營收將在 6.28 億美元至 6.53 億美元之間，較上年同期下降 1% 至成長 3%。

We expect Americas revenue to be between $308 million and$318 million. And airports revenue is expected to be between $111 million and $116 million. Europe North revenue is expected to be between $185 million and $195 million. Moving on to our full year guidance, we expect consolidated revenue to be between $2.222 billion and $2.247 billion representing a 4% to 6% increase over the prior year.

我們預計美洲地區的營收將在 3.08 億美元至 3.18 億美元之間。機場收入預計在 1.11 億美元至 1.16 億美元之間。北歐收入預計在 1.85 億美元至 1.95 億美元之間。展望全年指引，我們預計綜合收入將在 22.22 億美元至 22.47 億美元之間，比上年增長 4% 至 6%。

America's revenue is expected to be between $1.141 billion and $1.151 billion airports revenue is expected to be between $356 million and $361 million.

美國的收入預計在 11.41 億美元至 11.51 億美元之間，機場收入預計在 3.56 億美元至 3.61 億美元之間。

Europe north revenue is expected to be between $648 million and $658 million on a consolidated basis. We expect adjusted EBITDA to be between $565 million and $5 80 million.

歐洲北部的綜合收入預計在 6.48 億美元至 6.58 億美元之間。我們預計調整後 EBITDA 將在 5.65 億美元至 5.8 億美元之間。

AFFO guidance is $90 million to $105 million capital expenditures are expected to be in the range of $130 million to $140 million with a continued focus on investing in our digital footprint in the US.

AFFO 指引為 9,000 萬至 1.05 億美元，資本支出預計在 1.3 億至 1.4 億美元之間，並繼續重點投資我們在美國的數位足跡。

Additionally, we anticipate having cash interest payment obligations of $137 million in the fourth quarter of 2024 and $420 million in 2025. 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 年第四季的現金利息支付義務為 1.37 億美元，2025 年的現金利息支付義務為 4.2 億美元。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 business trends remain positive across our portfolio and we remain on track. To deliver our full year 2024 financial guidance. As we told you at the beginning of the year, 2024 results have been somewhat lumpy quarter to quarter based on 2023 comparatives. But as we look at the full year, we see real progress and we're encouraged by the early renewal and development efforts for 2025. This is because we are making inroads in our efforts to expand the range of advertisers. We can serve increase utilization across our platform and maximize revenue. In addition, the expansion of our footprint in New York through the new roadside contract further increases the size of the audiences we can deliver.

謝謝戴夫，回顧一下我們的投資組合中的業務趨勢仍然積極，我們仍然走在正軌上。提供 2024 年全年財務指引。正如我們在年初告訴您的那樣，與 2023 年相比，2024 年的季度業績有些不穩定。但當我們回顧全年時，我們看到了真正的進展，並且我們對 2025 年的早期更新和開發工作感到鼓舞。這是因為我們正在努力擴大廣告商的範圍。我們可以提高整個平台的利用率並最大化收入。此外，透過新的路邊合約擴大了我們在紐約的足跡，進一步增加了我們可以提供的觀眾規模。

We are committed to executing our strategic plan including continuing the sale processes related to our international businesses. Our ultimate goals include organically growing cash flow and reducing leverage on our balance sheet.

我們致力於執行我們的策略計劃，包括繼續與我們的國際業務相關的銷售流程。我們的最終目標包括有機成長現金流和減少資產負債表上的槓桿。

Our progress is evident in our third quarter AFFO which exceeded our discretionary CapEx and as noted, we expect the same in the fourth quarter as well as improvement in 2025. And now let me turn over the call to the operator and Justin Cochrane will join us on the call.

我們在第三季的AFFO 中取得了明顯的進展，該支出超出了我們的可自由支配資本支出，並且如上所述，我們預計第四季度也會取得同樣的進展，並在2025 年有所改善。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) Cameron McVeigh, Morgan Stanley.

（操作員指示）Cameron McVeigh，摩根士丹利。

Hi, good morning. I'd be curious any more colour on the New York MTA roadside contract. Maybe, you know why now and any more economics behind the deal. And then secondly, could you talk a bit more about the drivers of the improved national ad spend? We've seen some pressure on National Outdoor over the past few quarters. So curious, just in your view, what has changed? And if that's structural, thanks.

嗨，早安。我很好奇紐約 MTA 路邊合約上還有更多顏色嗎？也許，你現在知道為什麼以及這筆交易背後的更多經濟因素了。其次，您能多談談全國廣告支出改善的驅動因素嗎？在過去的幾個季度中，我們看到了 National Outdoor 面臨的一些壓力。很好奇，在你看來，發生了什麼變化？如果這是結構性的，謝謝。

Hey, Cameron. Good morning. Thanks for the questions. I'm going to start actually with your second first and I'll come back to the MTA & I'm going to hand it to Dave to talk a little bit more about the, the, the contract itself, but just on national ad spend environment. So there are things that contributed that we drove this quarter, like our emphasis on things like CPG, things like pharmaceuticals, things like telecom.

嘿，卡梅倫。早安.感謝您的提問。我實際上將從你的第二個開始，然後我將回到 MTA，我將把它交給戴夫，更多地談論合約本身，但只是在全國廣告上消費環境。因此，我們本季推動了一些事情的發展，例如我們對消費品、製藥、電信等方面的重視。

And there are things that are just math, and I think, you know, both of them conspired to make the number, you know at the kind of high single digits range. And I would just say that it's definitely better than it was a year ago, but there is nothing linear about the way national ad spending is evolving. We continue to see a median entertainment space that's going through a lot of turmoil and is not, you know, bouncing back to the kind of prestrike kind of levels, the I think everybody is aware of the competitive environment there and all of the you know, different activities that are going on. And so that, that vertical hasn't, hasn't really come back. And then we have, I mean it's not terrible, but it's not great and it is an important vertical within, within our portfolio.

有些東西只是數學，我認為，你知道，他們兩個合謀創造了這個數字，你知道在那種高個位數範圍內。我只想說，這肯定比一年前好，但全國廣告支出的發展方式並不是線性的。我們繼續看到中間娛樂空間正在經歷很多動盪，並且不會反彈到罷工前的水平，我認為每個人都意識到那裡的競爭環境以及所有你知道的，正在進行的不同活動。所以，垂直方向還沒有真正回來。然後我們，我的意思是，它並不可怕，但也不是很好，它是我們投資組合中一個重要的垂直領域。

And then there are just, you know, puts and takes business services continues to be a, a very strong performer at the local level. So anyway, you asked about national. So I'll pause there on, on the national. So it's partly things that we're consciously doing and it's partly just math and I'd say that the, the basic national market looks a lot like the basic national market.

然後，你知道，商業服務仍然是當地表現非常強勁的。無論如何，你問的是國家的。所以我會在國家賽上暫停一下。因此，這部分是我們有意識地做的事情，部分只是數學，我想說，基本的全國市場看起來很像基本的全國市場。

We've been looking at the last several quarters. So it's lumpy. Things are a little episodic, things are a little late to come in. But, but there's money out there to be had and, and the onus is on us to go get it, which brings me to your first question, which I'll answer second, which is about, about the MTA and you started off with why now just to be really clear, these are roadside bulletin assets, they're assets that, that kind of stretch around the tri state area on property that the MTA controls.

我們一直在關注過去幾季的情況。所以是塊狀的。事情有點偶然，事情來得有點晚。但是，但我們有錢可以拿到，我們有責任去拿到它，這讓我想到了你的第一個問題，我將回答第二個問題，這是關於 MTA 的，你一開始是為什麼現在要真正明確的是，這些是路邊公告資產，它們是在MTA 控制的三州地區周圍延伸的資產。

So this is all above ground stuff and it's all kind of billboard and poster type inventory. It's not shelters, it's not, you know, transit assets per se and this contract was consolidated back in 2017 and we actually had some of the properties prior to that. That's not really here nor there. Other than just to emphasize, this is our core business. This is not some you know, different adjacency. It is something that is going to give us a better footprint as we negotiate national contracts that we think will have a knock-on effect in other, in other markets.

所以這都是地上的東西，都是廣告看板和海報類型的庫存。這不是避難所，你知道，它本身不是交通資產，這份合約早在 2017 年就已合併，我們實際上在此之前就擁有了一些房產。那並不真正在這裡或那裡。除了強調之外，這是我們的核心業務。這不是你所知道的一些不同的鄰接。當我們談判國家合約時，這將為我們提供更好的足跡，我們認為這些合約將在其他市場產生連鎖反應。

And it will certainly be good for our New York operations, both locally and nationally because it's going to give us the ability to be relevant to a whole bunch of advertisers that we didn't have great solutions for our core New York City assets prior to this contract coming online, which is actually happening tomorrow. The beginning of November, I guess effectively Monday is really the first operational date. But the effect of it, the effect of it will be to give us a much richer story in terms of the audience we can deliver in New York. And it's a mix of digital and printed assets. And I'm going to let Dave get into a little bit of the, the contract details, but that's sort of the strategic rationale.

這肯定有利於我們在紐約本地和全國的業務，因為這將使我們有能力與一大群廣告商建立聯繫，而在此之前我們沒有為我們的紐約市核心資產提供很好的解決方案。將於明天上線。十一月初，我想實際上星期一實際上是第一個運營日期。但它的效果，它的效果將是為我們在紐約的觀眾提供一個更豐富的故事。它是數位和印刷資產的混合體。我會讓戴夫了解一些合約細節，但這就是策略原理。

Yeah, thanks Scott. I mean from a financial. Standpoint, I guess the first thing I I talk about is the contract starts, as Scott said on November 1st, there's definitely going to be a little bit of a ramp period as we get into it. It's obviously two months of the fourth quarter. So when I'm at a high level, when I'm, when I'm thinking about this contract, as we get into, into 2025 you know, this will add probably a couple of points of growth from a revenue standpoint. So it's very strong from a top line standpoint, very good assets, digital and, and also printed assets. And as Scott mentioned, we did have some of this inventory prior, so we're very familiar with it, but it is a municipal contract, the MTA contract. So it is going to be if you know, there's a mag attached to this contract, it's a very high rev share. There is some a little bit of capital recovery, but you know, you're going to have a revenue share in the high 70s.

是的，謝謝斯科特。我的意思是從金融角度。立場，我想我要談論的第一件事是合約開始，正如斯科特在 11 月 1 日所說，當我們進入合約時肯定會有一點過渡期。顯然這是第四季的兩個月。因此，當我處於高水準時，當我考慮這份合約時，當我們進入 2025 年時，你知道，從收入的角度來看，這可能會增加幾個百分點。因此，從收入的角度來看，它非常強大，非常好的資產，數位資產和印刷資產。正如斯科特所提到的，我們之前確實有一些庫存，所以我們非常熟悉它，但它是市政合同，即 MTA 合同。所以，如果你知道，這份合約附有一份雜誌，它的轉速份額非常高。有一些資本回收，但你知道，你將獲得 70 多美元的收入份額。

So from a margin standpoint, you know, it's not the normal flow through, you know, of the out of home space, but you know, it's absolute, you know, increase in, in our, in our margin dollars. So a contract, we're, we're absolutely looking forward to as I think about it in the fourth quarter. You know, you're probably going to have a little bit of a margin impact just because you're ramping the contract. Obviously, the mag starts, you got to match, you got to match that from a revenue standpoint. So they there'll definitely be obviously some top line growth in the fourth quarter, a little bit of impact from the margin standpoint in the fourth quarter. As I said, as we get into the next year, you'll have that impact on the top line of a couple of points and there may be a little bit of a margin impact as we get into 2025. But it's definitely more from a, from a top line standpoint in the business.

因此，從利潤的角度來看，這不是家庭外空間的正常流動，但你知道，我們的保證金美元絕對會增加。因此，當我在第四季度考慮時，我們絕對期待一份合約。您知道，僅僅因為您增加了合同，您可能就會對利潤產生一點影響。顯然，雜誌開始了，你必須匹配，你必須從收入的角度匹配。因此，第四季的營收肯定會出現一些明顯的成長，從第四季的利潤率角度來看，會產生一些影響。正如我所說，當我們進入明年時，您將對營收產生幾個點的影響，當我們進入 2025 年時，可能會對利潤率產生一些影響。但這絕對更多是從業務頂線的角度來看。

Yeah, and I think on that point, you know, I appreciate Dave saying that there may be a margin impact on it. I know how important operating leverage is to everybody who follows our business. Operating leverage is definitely going to be impacted as we absorb this contract over the next year. Once we get it fully up and operational, you'll see operating leverage get back to a more normal state, but I just don't want anybody thinking that this is going to flow through that 2025 is going to be a normal year from an operating leverage perspective because this is a big contract and it will again, just math impact the margin percent over the course of that, but we should see it. You know, as the year goes on normalize and then, you know, future years will look more normal in operating leverage.

是的，我認為在這一點上，你知道，我很欣賞戴夫說可能會對利潤產生影響。我知道營運槓桿對於每個關注我們業務的人來說有多重要。當我們在明年吸收這份合約時，營運槓桿肯定會受到影響。一旦我們全面啟動並投入運營，您將看到運營槓桿恢復到更正常的狀態，但我只是不希望任何人認為這將貫穿 2025 年將是正常的一年。大合同，它會再次影響利潤率，但我們應該看到它。你知道，隨著今年的正常化，未來幾年的營運槓桿看起來會更加正常。

Daniel Osley with Wells Fargo.

丹尼爾·奧斯利與富國銀行。

Good morning. I just have two questions. The first, can you unpack any political benefit you had in Q3 and maybe your expectation for Q4, whether it be from crowd out or direct dollars. And then secondly, how should we think about airports growth moving forward? It seems like you fully lapped the ramp of the port authority contract and your Q4 guide implies a low single digit growth range. So, is that something we should be extrapolating moving forward or is there anything that moves that one way or the other?

早安.我只有兩個問題。首先，您能否分析您在第三季度獲得的任何政治利益，以及您對第四季度的期望，無論是來自擠出還是直接美元。其次，我們該如何看待機場的未來發展？看來您完全完成了港務局合約的成長，而您的第四季指南意味著較低的個位數成長範圍。那麼，這是我們應該推斷的事情嗎？

Thank you.

謝謝。

Thanks Daniel. You know,first off on political, we, we definitely have seen some political money come in. We've seen it in our programmatic channels. We've also seen it in our direct channels, and it's come from the campaigns themselves as well as from packs. The numbers are not enormous you're talking about, you know, over the course of the year, a few million dollars in terms of the impact.

謝謝丹尼爾。你知道，首先在政治上，我們肯定看到了一些政治資金的進來。我們已經在程序化管道中看到了這一點。我們也在我們的直接管道中看到了它，它來自於活動本身以及來自包。你所說的數字並不巨大，你知道，在這一年中，就影響而言，只有幾百萬美元。

So I don't think you're going to see us, you know, see the, the boom up, the boom down that, that you see in other local oriented media. It just is not, it's not a huge driver for us, but it is something we've had some success with this year. It is something that, you know, when the dust settles on Q4 and we finish, you know, we are in a bunch of swing states. When the dust settles on it, we should see, you know, the percentage growth in political will be big for us, but it will be on a very small base.

所以我認為你不會看到我們，你知道，看到你在其他本地媒體上看到的繁榮上升，繁榮下降。事實並非如此，這對我們來說不是一個巨大的推動力，但這是我們今年取得的一些成功。你知道，當第四季度塵埃落定並且我們完成時，你知道，我們正處於一系列搖擺狀態。當塵埃落定後，我們應該會看到，你知道，政治方面的成長百分比對我們來說將會很大，但基礎卻很小。

And you know, I don't expect to be coming to you hat in hand using it as an excuse a year from now. So hopefully that dimensionalizes political for you reasonably well on airports moving forward. I think we've been signalling for a while now and Dave keep me Honest on this one, but I think we've been signalling for a while now that as the buildout matures in the port authority and, and we don't have any other major contract puts and takes that, that, that kind of GDP plus growth that normal out of home has over sustained periods is probably the right way to think about airports.

你知道，一年後我不會拿著它當藉口來找你。因此，希望這能為您在機場的未來發展中提供相當好的政治維度。我想我們已經發出了一段時間的信號，戴夫讓我在這件事上保持誠實，但我認為我們已經發出了一段時間的信號，隨著港務局擴建的成熟，而且我們沒有任何其他主要合同認為，這種國內生產總值加上正常的持續一段時間內的增長可能是考慮機場的正確方式。

There are definitely things we're working on to enhance our offer and to you know, further innovate in terms of how we go to market but this team has been on an absolute tear for the last, you know, probably six or seven quarters and I think you're going to see a little bit of a pause there. And, you know, probably in the next two or three years we'll have, you know, some puts and takes in terms of contracts. There's nothing like, you know, material coming up or anything like that. But you're seeing the airport business, you know, they were hit so hard by COVID. A lot of the airport authorities went to direct extensions as opposed to RFPs. So I think it's been a little bit of an unnaturally quiet period in terms of contract stability. Again, nothing like big that's in the immediate headlights. But I think you're going to start to see that crop up in the next couple of years.

我們肯定正在努力提高我們的產品和服務，並且在我們進入市場的方式方面進一步創新，但這個團隊在過去的時間裡一直在努力，你知道，可能有六七個季度，我想你會看到那裡有一點停頓。而且，你知道，可能在未來兩三年內，我們將在合約方面進行一些看跌期權和索取期權。你知道，沒有任何材料出現或類似的東西。但你看到機場業務，你知道，他們受到了新冠疫情的嚴重打擊。許多機場當局採取了直接延期的方式，而不是徵求建議書。所以我認為就合約穩定性而言，這是一段不自然的平靜時期。再說一次，沒有什麼比眼前的車頭燈更大的了。但我認為您將在未來幾年內開始看到這種情況的出現。

Avi Steiner with JPMorgan.

摩根大通的阿維·斯坦納。

Thank you and good morning. I've got three here. If I can. One, I'll start on the balance sheet, free cash flow as we look at it positive in Q3, the commentary pointed to further improvements broadly in the context of those comments and organically reducing debt with free cash flow. I'm just wondering how you think about balancing some discount available on some of your debt for some earlier maturities and I've got two more. Thank you very much.

謝謝你，早安。我這裡有三個。如果我可以的話。第一，我將從資產負債表和自由現金流開始，因為我們在第三季度看到它是積極的，評論指出在這些評論的背景下將進一步改善，並透過自由現金流有機地減少債務。我只是想知道你如何考慮平衡一些較早到期的債務的折扣，我還有另外兩個。非常感謝。

Will you take that one Dave?

你願意接受那個戴夫嗎？

Sure. No, look. Thanks for the question a from the free cash flow standpoint, I feel pretty good where we are right now. I mean, we signalled in the call last quarter about, you know, being our, AFFO covering our discretionary or slash growth CapEx to be positive in the second half. And we were positive in the third quarter and we're going to be positive in the fourth quarter. And I can see that progressing as we get into the 2025. So I think that's a, that's a good milestone for the business. You know, as far as when you're talking about the paydown of debt.

當然。不，你看。謝謝你從自由現金流的角度提出問題，我對我們現在的處境感覺很好。我的意思是，我們在上個季度的電話會議中表示，作為我們的 AFFO，我們的可自由支配或大幅增長的資本支出將在下半年實現正值。我們在第三季表現積極，在第四季也將表現積極。當我們進入 2025 年時，我可以看到這一點正在取得進展。所以我認為這對企業來說是一個很好的里程碑。你知道，當你談論償還債務時。

Yeah, as we start, you know, producing, you know, free cash for the, for the business, absolutely, that's a definite, you know, opportunity or outcome with that cash. And, you know, we would look at our the pricing of our bonds, you know, right now, you know, the prices are actually pretty strong if you look across our portfolio of assets. But I think that's something we're going to get into the strategic initiatives and as those progress, I think that's the conversation, you know, where we're looking at debt pay down from that standpoint first and then as we're obviously generating free cash flow, you know that this is another positive outcome, you know, from that cash flow, you know, do you invest in the business or is there a certain, are there, is there ways that we can go after our debt to pay that down? So that's definitely top of mind.

是的，當我們開始時，你知道，為企業生產免費現金，絕對，這是一個明確的，你知道的，現金的機會或結果。而且，你知道，我們會關注我們債券的定價，你知道，現在，如果你看看我們的資產組合，價格實際上相當強勁。但我認為這是我們將要納入戰略舉措的內容，隨著這些進展，我認為這就是對話，你知道，我們首先從這個角度考慮債務償還，然後我們顯然正在產生債務自由現金流，你知道這是另一個正面的結果，你知道，從現金流中，你知道，你投資於該業務還是有一定的，有沒有，有什麼方法可以讓我們追回我們的債務還清那筆錢嗎？所以這絕對是首要考慮的事情。

Great. And my second question, I just want to dig into the, pull your guide a little bit more and what it implies for you, which I think is slightly down in the fourth quarter. And if you mentioned this already, I apologize, but anything to call out on the expense side or otherwise that, you know, by segment that might account for that. And then I have one last one to thank you very much.

偉大的。我的第二個問題，我只是想深入研究一下，把你的指南拉得更多一點，以及它對你意味著什麼，我認為第四季度略有下降。如果你已經提到了這一點，我很抱歉，但在費用方面或其他方面有任何需要指出的地方，你知道，按可能解釋這一點的部分。最後我要非常感謝你們。

I mean, when I'm thinking about the guide for the fourth quarter, I mean, when I'm thinking about it from the top, from a topline standpoint, I mean, for the full year, you know, America has roughly 4$ to 5% or 3% to 7% in the fourth quarter. And, you know, right now for, for airports and American I can say this for Europe as well. In the third quarter, we've had record revenue, you know, for airports. We're going to continue that in the fourth quarter. The fourth quarter of last year was the biggest, revenue, quarter we've ever had in airports at, at $111 million, you know, we're looking to exceed that. So, II I, when you look at the percentages, yeah, they're probably not the go to numbers that we've been seeing over the last, you know, 6 to 7 quarters. But when we talked about that, you know, as we come up across those coms that will have an effect from a growth rate standpoint and in Europe North and they're coming off of, you know, 13%-14%% growth in the fourth quarter of last year. Again made a record quarter last year in the fourth quarter. We're coming up against those comps and seeing a little bit of softness, I'd say in the UK. And I think as, you know, the government is kind of rolling out in their budgets and the conversations there, I think that kind of growth a little bit in the fourth quarter for Europe. So that's probably when you think about the weakness of the guide in the fourth quarter, that's probably where I point you to.

我的意思是，當我考慮第四季度的指南時，我的意思是，當我從頂層、從頂線的角度考慮時，我的意思是，就全年而言，你知道，美國大約有4第四季將成長至 5% 或 3% 至 7%。而且，你知道，現在對於機場和美國，我也可以對歐洲這麼說。你知道，第三季我們的機場收入創下了紀錄。我們將在第四季繼續這樣做。去年第四季是我們機場有史以來收入最高的季度，達到 1.11 億美元，你知道，我們希望超越這個數字。所以，II I，當你看百分比時，是的，它們可能不是我們在過去 6 到 7 個季度看到的數據。但當我們談論這個時，你知道，當我們遇到那些從成長率的角度來看會產生影響的com時，在歐洲北部，它們的成長率為13%-14%%去年第四季。第四季再次創下去年季度紀錄。我想說的是，我們在英國遇到了這些競爭，並看到了一些疲軟。我認為，你知道，政府正在推出預算和對話，我認為歐洲第四季會有一點成長。所以，當你想到第四季指南的弱點時，這可能是我向你指出的地方。

Yeah, on the, on the cost side, there have been some tax.

是的，在成本方面，有一些稅。

Yeah.

是的。

And increases in Europe, in particular in the UK, in particular that have had.

歐洲，特別是英國，也出現了成長。

Impact you have that. And there's also, you know, a new couple of new contracts ramping overseas and, you know, as you're deploying cost, you know, certain assets, you know, that's driving a little bit there as well. But you always see that when you're ramping new contracts.

影響力你有。而且，你知道，還有一些新的新合約正在海外湧現，而且，你知道，當你部署成本時，你知道，某些資產，你知道，這也推動了一些。但當你增加新合約時你總是會看到這一點。

That's definitely helpful. I appreciate it. And, and if I can end up on, on the Europe side and thank you again. So the Spain sale sidelined for now, I'm just wondering if it changes your thoughts around the process of Europe overall. Scott, you mentioned you want to price to reflect the value of the business. I think everyone can get behind that. But given just how long this has gone on, I wonder if instead of a sale, the company might be considering perhaps a spinoff for the business, which may not give you the same amount of media cash, but it allows you to kind of focus on the US and put all those assets in one business. I'm curious how you think about that. And thank you.

這絕對有幫助。我很感激。如果我能最終到達歐洲這邊，再次感謝你們。因此，西班牙的銷售暫時擱置，我只是想知道它是否會改變您對歐洲整體進程的看法。斯科特，您提到您希望定價能反映業務價值。我認為每個人都可以支持這一點。但考慮到這種情況已經持續了多久，我想知道該公司是否可能會考慮將業務分拆，而不是出售，這可能不會為你帶來相同數量的媒體現金，但它可以讓你集中精力並將所有這些資產集中到一項業務中。我很好奇你對此有何看法。謝謝你。

Hey, Avi, you always ask the easy ones. Thank you for that. So, I know, I know Spain is on just reading the notes that people wrote this week. I think Spain is on people's minds in, in different way. And I think, you know, data 0.1 on it is just an example of the regulatory state that we live in and that we have to take seriously, you know, the regulatory hurdle that we have, we and JCD believed when we inked the deal 17 months ago that this would be able to be done and it is once that deal is inked, it is on the onus of the buyer to work with the regulatory commission.

嘿，阿維，你總是問簡單的問題。謝謝你。所以，我知道，我知道西班牙正在閱讀人們本週寫的筆記。我認為西班牙以不同的方式存在於人們的腦海中。我認為，數據 0.1 只是我們所處的監管狀態的一個例子，我們必須認真對待我們所面臨的監管障礙，我們和 JCD 在簽署協議時都相信這一點17 個月前，這是可以做到的，一旦交易簽署，買方就有責任與監管委員會合作。

And for whatever reason, it, it didn't get across the hurdle. I think some of you recall that we announced Italy and Spain at the same time and Italy was the same scenario where we're competitors in that market. But for whatever reason, the dynamics of it, the size of the deltas, you know whatever the nature of the regulatory commission, Italy went right through in Spain. You know, obviously didn't, didn't end up working so we just can't ever take lightly the, the regulator piece. I think the second thing on this that I've heard people ask about is does this mean that you can't contemplate a strategic buyer in northern Europe?

不管是什麼原因，它沒有跨越這個障礙。我想你們中的一些人還記得我們同時宣布了義大利和西班牙的消息，而義大利也是我們在該市場的競爭對手的情況。但無論出於何種原因，無論其動態、三角洲的大小，無論監管委員會的性質如何，義大利都在西班牙遭遇了同樣的情況。你知道，顯然沒有，最終沒有起作用，所以我們不能掉以輕心，調節器部件。我認為我聽到人們問的第二件事是，這是否意味著您不能考慮在北歐尋找戰略買家？

And I just urge everybody to think about the fact that strategic is in the eye of the beholder and it doesn't necessarily mean that the person operates roadside assets or outdoor assets. I should say it might be that they are a media company. So I wouldn't rule out the idea that there are strategic entities that would be interested in the business beyond just the, the names that, you know, in out of home advertising. And on your question about structuring avi you know, we appreciate, we appreciate that this has taken some time, but we also will push back on the fact that interest rates went through the roof and we had a war launch and a lot of different turmoil in the different markets.

我只是敦促大家思考這樣一個事實：策略是情人眼裡出西施，不一定代表該人經營路邊資產或戶外資產。我應該說他們可能是媒體公司。因此，我不會排除這樣的想法，即除了戶外廣告中的名稱之外，還有一些策略實體會對這項業務感興趣。關於你關於構建 avi 的問題，你知道，我們很感激，我們很感激這花了一些時間，但我們也會反駁這樣一個事實：利率飆升，我們發動了戰爭，發生了很多不同的動盪。的市場。

And I give our European team just a ton of credit for the performance that Europe North has put in, which we've called attention to the last couple of earnings calls. And you know, the Spanish team, despite having had a sale in and having a lot of uncertainty about exactly what the form of the, the new business was going to be. Just put their heads down and, and crushed it. And that, that is, I think what speaks to the character and capability of our company and that I'm not going to get over my skis on speculating about how how I'd structure this differently than a sale process until such point. As I, I believe a sale process is not practically possible and I am not anywhere close to that point. So hopefully, that, that gives you an answer without getting into, you know, all of the, I mean you and I could spit ball for hours and all the different cool things that we could do to extract money from this and, and you know, manage it differently. But while we're on the stated strategy of, of selling the markets and working a process, I'm not going to indulge in that on our public earnings call. So hopefully that that gives you what you need.

我對歐洲北部團隊的表現給予了極大的讚揚，我們在最近幾次財報電話會議上也提請注意這一點。你知道，西班牙團隊儘管已經進行了出售，並且對新業務的具體形式有很多不確定性。只要低下頭，然後壓碎它。也就是說，我認為這說明了我們公司的特點和能力，在此之前我不會過度思考如何建構與銷售流程不同的結構。作為我，我相信銷售過程實際上是不可能的，而且我還沒有接近這一點。所以希望這能給你一個答案，而不需要陷入所有的，我的意思是你和我可以吐球幾個小時，以及我們可以做的所有不同的很酷的事情，我們可以從中提取金錢，而且你知道，以不同的方式管理它。但是，雖然我們正在製定出售市場和製定流程的既定策略，但我不會在我們的公開財報電話會議上沉迷於此。希望這能為您提供所需的東西。

Appreciate it as always. Thank you very much. Everyone.

一如既往地欣賞它。非常感謝。每個人。

Lance Vitanza, TD Cowan.

蘭斯·維坦扎，TD·考恩。

Hi guys. Thanks for taking the question. Sticking with the Europe North. I was surprised given the strength in revenues on the one hand, but costs obviously grew more quickly. And could you sort of break that down in terms of what in that cost side is recurring versus nonrecurring and, and really what it means for margins in Europe North going forward.

嗨，大家好。感謝您提出問題。堅持歐洲北部。一方面，考慮到收入的強勁，我感到驚訝，但成本顯然成長得更快。您能否從成本方面的經常性成本與非經常性成本方面進行分析，以及這對歐洲北部未來的利潤率意味著什麼。

You mentioned higher site lease expense and I'm wondering, you know, was that unfavourable renewals or were there perhaps some COVID abatements that rolled off and then related to that, you know, the impact of Norway, which you call out? But could you sort of put some numbers around that? Is it possible to talk about what the revenue and EBITDA growth would have been ex that Norway contract going away? Thanks.

你提到了更高的場地租賃費用，我想知道，這是不利的續約，還是可能有一些新冠疫情的削減，然後與你所說的挪威的影響有關？但你能給出一些數字嗎？是否可以談談挪威合約取消後的收入和 EBITDA 成長？謝謝。

Yeah, I'll start Lance and then I'll pass it off to Justin to fill in more of the details. Well, look, we have a few, a few contracts that are ramping that I was there an increase in cost and you get that in the beginning, we have property taxes, which is not a onetime or that have increased in the UK. But I'd say more on the rental side that will normalize over time. But from a margin standpoint, I don't expect there to be, you know, major changes going forward. As we're looking at history and kind of where we are today. And like the business grew, you know, quite nicely from the top line and any expenses, I'd say, I think going through the details, I think site lease is kind of like your normal increases that you're going to have and it can be a little bit lumpy, you know, quarter to quarter.

是的，我將啟動 Lance，然後將其傳遞給 Justin 來填寫更多詳細資訊。好吧，看，我們有一些合約正在增加，我的成本增加了，一開始你就明白了，我們有財產稅，這不是一次性的，也不是在英國增加的。但我想說的是，隨著時間的推移，租賃方面將會正常化。但從利潤的角度來看，我預計未來不會有重大變化。當我們回顧歷史和我們今天所處的位置。隨著業務的成長，你知道，從營收和任何費用來看，我想說，我認為仔細考慮細節，我認為場地租賃有點像你將要擁有的正常成長，你知道，每個季度可能會有點不穩定。

I probably point to some of the rental cost is a little bit on production, probably a little bit higher than normal. And then you have the, the business is actually performing pretty well. So you add in bonus, you know, from an incentive comp standpoint, that's kind of driving a little bit of that from a margin standpoint. But just, I know if you want to go into more details from a contract Standpoint.

我可能會指出，一些租賃成本是在生產上花費的，可能比正常情況要高一些。然後你會發現，該業務實際上表現得相當不錯。因此，您添加獎金，您知道，從激勵補償的角度來看，從利潤的角度來看，這有點推動了這一點。但只是，我知道您是否想從合約的角度了解更多細節。

Yeah, thanks Dave. I've got a couple of things to add. I guess the Norway thing is a bit of a red herring. It was a big revenue contract. It was a low margin contract. So there's really no material difference from that. As Dave said, the underlying business margin year on year is actually about the same. There are a few small one offs here and there, but it's nothing material and nothing I'd expect to change the overall margin profile going forward. And if we hadn't had those in the quarter, we would have had a similar margin to prior year. So, I don't think there's anything structural that shifted. I think it's a few small things that, made the margin come down slightly just in this quarter.

是的，謝謝戴夫。我有幾件事要補充。我想挪威的事情有點轉移注意力。這是一份巨額收入合約。這是一份低利潤合約。所以這實際上沒有什麼實質的區別。正如戴夫所說，基本業務利潤率比去年同期大致相同。雖然偶爾會有一些小問題，但這並不重要，而且我預計不會改變未來的整體利潤狀況。如果我們在本季沒有這些，我們的利潤率將會與去年相似。所以，我認為沒有任何結構性改變。我認為有一些小事情導致本季的利潤率略有下降。

Thanks so much.

非常感謝。

Thanks lads.

謝謝小伙子們。

Aaron Watts, Deutsche Bank

亞倫‧瓦茨，德意志銀行

Everyone. Thanks for having me on just two questions for me. You've indicated in the past that cancellations have been a precursor to downturns in your business. I think as of the last call, you hadn't seen any notable activity on that front. Is that still true today? And any early indications from your ad clients on commitments for early 2025.

每個人。謝謝你讓我只回答兩個問題。您過去曾表示，取消訂單是您業務衰退的先兆。我認為截至上次通話時，您還沒有看到這方面的任何值得注意的活動。今天仍然如此嗎？以及您的廣告客戶對 2025 年初承諾的任何早期跡象。

And then secondly, on the National business here in the US and turning the corner into 24th quarter and turning the corner into 2025. Are you feeling any headwinds from all the streaming ad inventory that has come online this year? Do you think that's part of the reason for sustained choppiness on national throughout the last 12 months and something you might expect to continue going forward?

其次，關於美國的全國業務，第 24 季即將到來，2025 年即將到來。您是否感受到今年上線的所有串流廣告庫存帶來的阻力？您認為這是過去 12 個月全國賽持續波動的部分原因嗎？

Thanks Aaron. Yeah. No good Couple of questions. So on the cancellation front. No, we have not seen an uptick in cancellation activity and yes, the early 2025 conversations are, are pretty encouraging. We are very early into that renewal season, but we are encouraged by the number of parties that are looking to renew and that are looking to renew, you know, potentially with expanded commitments. So, you know, it's way, way too early to be guiding on 2025. So please don't, any of you ask me to give you, what percent are we going to call for? 2025?

謝謝亞倫。是的。沒有好的幾個問題。所以在取消方面。不，我們沒有看到取消活動增加，是的，2025 年初的對話非常令人鼓舞。我們正處於續約季節的早期階段，但我們對尋求續約的各方以及尋求續約的各方感到鼓舞，你知道，可能會擴大承諾。所以，你知道，現在就 2025 年進行指導還為時過早。所以請不要，你們中的任何人要求我給你們，我們要要求百分之多少？2025 年？

But I do think that, you know, we are positioned well heading, into 2025 on, on national, you know, the money is there. I think that is the critical thing. And so the onus is on us to figure out how to tap that money and whether that's bringing an advertiser to an agency, you know, bringing an idea to an advertiser and getting the advertiser to advocate that to an agency, which is something we're doing increasingly or whether that's being particularly creative and how we're packaging solutions when we get RFPs, which is kind of the, the core way a lot of the national gets done.

但我確實認為，我們已經做好準備，進入 2025 年，在全國範圍內，資金就在那裡。我認為這是關鍵的事情。因此，我們有責任弄清楚如何利用這筆錢，以及這是否會將廣告商帶到代理機構，你知道，將想法帶給廣告商並讓廣告商向代理商宣傳這一點，這就是我們的事情。

But you have, you have heard us talk about the efforts that we've gone on in things like Pharma and CPG and beer. We are getting very close to bringing somebody in to help us focus on automotive. So that's an area that I think you'll hear us talking more about as we go, we have existing relationships in telecom and in auto insurance that are important categories. Media and entertainment is an important category where we have relationships at the advertiser level.

但你們已經聽到我們談論我們在製藥、快速消費品和啤酒等領域所做的努力。我們即將聘請某人來幫助我們專注於汽車領域。因此，我認為您會聽到我們更多地談論這個領域，我們在電信和汽車保險領域都有現有的關係，這些都是重要的類別。媒體和娛樂是我們在廣告商層面建立關係的一個重要類別。

So we are looking to leverage those advertiser level conversations and help them all see how out of home can amplify what they're doing in other places. I can't really comment on, you know, cross, cross pressure from all of the different streaming inventory that's come online. I do think that, you know, when I look across our global portfolio, I see us getting more TV budgets in every country other than the US. And so I would attribute at least some of that to the number of video options that there are in the US.

因此，我們希望利用這些廣告商層面的對話，幫助他們所有人了解如何在戶外擴大他們在其他地方所做的事情。我無法真正評論來自所有不同線上串流媒體庫存的交叉壓力。我確實認為，當我縱觀我們的全球投資組合時，我發現我們在美國以外的每個國家都獲得了更多的電視預算。因此，我至少將其中部分原因歸因於美國的視訊選項數量。

That would be more than just the streaming folks. But certainly the streaming folks are probably having some impact there, but I really don't think we should as an industry accept that as an excuse, the fact that we don't have video. It's a challenge, but the reality is that our assets amplify video and that smart advertisers use a mix of different types of advertising to land their campaigns in the most cost effective way the onus is on us to prove to them that that's the case and get that done.

這將不僅僅是串流媒體人士。但當然，串流媒體人士可能會產​​生一些影響，但我真的認為作為一個行業，我們不應該接受我們沒有視訊這一事實作為藉口。這是一個挑戰，但現實是，我們的資產會放大視頻，而聰明的廣告商會混合使用不同類型的廣告，以最具成本效益的方式開展活動，我們有責任向他們證明情況確實如此，並獲得成功。

So that's what we're, that's what we are focused on and on national. I don't think it's going to become less choppy anytime soon. Just given the general degree to which, you know, there's very regular CMO changes. There's a lot of CEO changes going on in the world right now too. So there's no shortage of things that cause people to change strategy and change direction. The critical thing for us is to be at the table with the right people so that when those changes come down, we're part of that conversation.

這就是我們的本質，這就是我們所關注的，也是國家的。我認為它不會很快變得不那麼不穩定。就CMO 變動的一般程度而言，您知道，這是非常規律的。目前世界上也發生了很多執行長的變動。所以不乏導致人們改變策略、改變方向的事。對我們來說，最重要的是與合適的人坐在一起，這樣當這些變化發生時，我們就能參與對話。

Very helpful. Thanks, Scott.

非常有幫助。謝謝，斯科特。

David Karnovsky, JP Morgan.

大衛卡諾夫斯基，摩根大通。

Hey, this is Kiscada Hastings on for David Karnovsky. Just had a question on local. It's continued to be an outperformer for you and the industry macro has been supportive. But could you talk about if there are any other secular dynamics to consider and how some of the major categories like maybe legal or services are approaching billboard? I'm trying to get a sense of the sustainability here beyond economic consideration. Thank you.

嘿，我是大衛·卡諾夫斯基的基斯卡達·黑斯廷斯。剛剛有一個關於本地的問題。它對您來說仍然表現出色，而且行業宏觀也一直提供支援。但您能否談談是否還有其他長期動態需要考慮，以及一些主要類別（例如法律或服務）如何接近廣告看板？我試圖了解這裡超越經濟考量的可持續性。謝謝。

So, that's a, broad question and there's no question that legal has been an important vertical for us and the dialogue that we have with the legal entities. And you know, I I talked a minute ago about some of the verticals that we're focusing on nationally legal is one we've been focused on at the local level for some time and we have individuals in our markets who are very fluent in the strategies the different legal service providers are pursuing and how we can complement them.

所以，這是一個廣泛的問題，毫無疑問，法律對於我們以及我們與法律實體的對話來說一直是一個重要的垂直領域。你知道，我一分鐘前談到了我們關注的國家法律的一些垂直領域，我們在地方層面上已經關注了一段時間了，我們的市場中有一些非常熟悉該行業的人。採取的策略以及我們如何補充它們。

You know, we strive to do that also with things like auto dealers and restaurants, retail, those kinds of areas and are working in different degrees to get after it. But I think the core thing is that local advertising market continues to very much be in play among local other local media. You know, possibly including things like, like search as a local media because it can present as, you know, an intensity local, I think as can as can social.

你知道，我們也努力在汽車經銷商、餐廳、零售等領域做到這一點，並且正在不同程度地努力實現這一目標。但我認為核心是本地廣告市場繼續在本地其他本地媒體中發揮作用。你知道，可能包括像搜尋這樣的本地媒體，因為它可以呈現為，你知道，強度本地化，我認為也可以社交化。

And so the local market scrum is lively and vibrant and we are expanding our teams locally. We're expanding capabilities locally. We're training people up on how to sell in conjunction with digital and how to amplify digital campaigns. So there is lot of things we're doing to, to strive to keep that part of things going. And I think the other, the other element of local is the local agencies behave in a somewhat different fashion than the national, like large folding company agencies do.

因此，當地市場熱鬧非凡，我們正在當地擴大我們的團隊。我們正在本地擴展能力。我們正在培訓人們如何結合數位化進行銷售以及如何擴大數位化行銷活動。因此，我們正在做很多事情，努力讓這部分事情繼續下去。我認為本地的另一個要素是本地機構的行為方式與全國機構有所不同，就像大型折疊公司機構的做法一樣。

And that creates some opportunities at the local level. So the good news is we are a intensely local medium. We're a medium where people like to see their products supported at that local level and you know, feel good that we've got a good runway of growth opportunity there. When you just think about the amount of advertising expended at the local level and our relative share of it.

這在地方層級創造了一些機會。所以好消息是我們是一家非常在地化的媒體。我們是一個媒介，人們希望看到他們的產品在當地得到支持，而且你知道，我們在那裡擁有良好的成長機會，這讓我們感到很高興。當您考慮一下在地方層級花​​費的廣告數量以及我們所佔的相對份額時。

Awesome. Thanks.

驚人的。謝謝。

Patrick Sholl with Barrington Research.

巴林頓研究公司的派崔克‧肖爾。

Thank you. Good morning. I was wondering if you could talk on the airport side with the kind of slower growth in digital from that segment and then also circling back to the MTA, I guess in, sort of adding and ramping up a contract of that size, I guess. How do you go about like limiting some of the cannibalization from other assets in the market?

謝謝。早安.我想知道您是否可以在機場方面談談該領域數位化成長較慢的情況，然後再回到 MTA，我想是在增加和擴大這種規模的合約。您如何限制市場上其他資產的部分蠶食？

Great. So, Pat, let me start on the digital growth in,airports. You know, I think Dave referenced this a minute ago but our, our comp you know, we have been setting quarterly records in airports for a number of quarters now. Probably going back to the the early part of 2023.

偉大的。那麼，帕特，讓我從機場的數位成長開始。你知道，我想戴夫在一分鐘前提到過這一點，但我們的公司，你知道，我們已經連續幾個季度在機場創下了季度記錄。可能要追溯到 2023 年初。

So we have been growing that that space pretty substantially when you think about the split between digital and printed in airports. What you've really seen if you go back and you look at our digital growth during those periods, it was the main driver for much of that time. And I think partly what, what you're seeing is just a little bit of rebalancing and it can be you know, only a couple of deals can swing you one direction or another.

因此，當你考慮機場數位和印刷之間的分歧時，我們一直在大幅擴大這個空間。如果你回顧我們在那些時期的數位成長，你會真正看到什麼，這是大部分時間的主要驅動力。我認為部分原因是，你所看到的只是一點點重新平衡，而且你可能知道，只有幾筆交易可以讓你朝一個方向或另一個方向搖擺。

On this, in terms of if people are going for domination on printed assets, it can cause the printed number to, to spike up. And I don't have kind of a campaign-by-campaign play. But, but if you think about just what the advertisers trying to, to accomplish a lot of times they're trying to dominate the share of voice in a particular location and a great way to do that is on the printed assets. I mean, we see that, you know, I think people have expected for years that we were going to see, the printed roadside assets shrink while the digital assets have grown, but the printed have, have held their own and in most quarters have shown some growth and this quarter is pretty, pretty healthy growth that we had the roadside printed.

在這一點上，如果人們想要控製印刷資產，它可能會導致印刷數量激增。我沒有逐一競選活動的劇本。但是，如果你想想廣告商想要做什麼，很多時候他們試圖在特定地點佔據話語權，而實現這一目標的一個好方法就是在印刷資產上。我的意思是，我們看到，你知道，我認為人們多年來一直期望我們會看到，印刷的路邊資產萎縮，而數位資產卻在增長，但印刷的資產已經保持了自己的地位，並且在大多數季度都保持了領先地位。

So I think it's a little bit of advertiser preference and a little bit of, you know, how the, how the campaigns are laying in. I certainly am not hearing anything that suggests there's any issue in digital sales in the airports. I think it was probably just a couple of a couple of print, heavy share of voice heavy campaigns that came in Pat. So that's, that's on the airport's digital growth and hopefully that clarifies it for you. On the New York inventory.

所以我認為這有一點是廣告商的偏好，還有一點，你知道，廣告活動是如何進行的。我當然沒有聽到任何表明機場數位銷售存在任何問題的消息。我認為這可能只是帕特發表的幾篇印刷品、大量語音活動中的幾個。這就是機場的數位成長，希望這能為您澄清這一點。在紐約庫存上。

The reality for us is that our presence in New York is disproportionately in times square and on, you know, large assets at choke points like tunnels and bridges. We, don't have prior to this contract activating tomorrow, we didn't have a particularly robust sort of a run of market kind of, you know, distribution. This gives us a really healthy distribution along and around the kind of I95 and lie corridors that we really shouldn't expect that there's going to be a whole lot of cannibalizations for it.

對我們來說，現實是，我們在紐約的存在不成比例地集中在時代廣場以及隧道和橋樑等咽喉要道的大型資產上。在這份合約明天激活之前，我們沒有一個特別強大的市場運行，你知道，分配。這為我們在 I95 公路及其周圍提供了非常健康的分佈，我們真的不應該期望它會出現大量的蠶食。

I mentioned briefly at the outset, you know, we operated you know, a portion of these assets, nothing like the whole portfolio we just picked up, but maybe 20% of the portfolio we picked up prior to 2017 when MTA consolidated and, and, and bid out that group of assets the first time. So it's areas we're familiar with and it's areas that we know well, but there's not a lot of other assets of ours to take things off of. So this should be very largely incremental for us. Hopefully that answers your questions.

我一開始就簡單地提到，我們經營這些資產的一部分，與我們剛剛獲得的整個投資組合不同，但可能是我們在 2017 年 MTA 合併之前獲得的投資組合的 20%，以及，並首次競標該組資產。因此，這是我們熟悉的領域，也是我們熟知的領域，但我們沒有太多其他資產可以藉鏡。所以這對我們來說應該是非常增量的。希望這能回答您的問題。

Yes, thank you.

是的，謝謝。

This will conclude our question-and-answer session. I would like to turn the conference back over to Scott Wells for closing remarks.

我們的問答環節到此結束。我想將會議轉回斯科特威爾斯（Scott Wells）進行閉幕致詞。

Great. Well, we appreciate the questions and the engagement. You know, I think the thing I just end on is that in this season of uncertainty around the election and in the ongoing uncertainty around macro direction of the country and what, what lies ahead.

偉大的。好吧，我們感謝您的提問和參與。你知道，我想我剛結束的一件事是，在這個選舉充滿不確定性的季節，以及國家宏觀方向和未來的持續不確定性。

When I look at our business, we are, we are looking at records across all of our principal lines of business in Q3. And a healthy business should be setting records regularly. So there's nothing particularly that I want to thump my chest on that, but I just want to call out that there has been this sustained concern about what was around the corner and where things were.

當我審視我們的業務時，我們正在查看第三季所有主要業務領域的記錄。一個健康的企業應該定期創造記錄。因此，我並沒有什麼特別想為此拍拍胸脯的，但我只是想指出，人們一直對即將發生的事情和事情在哪裡感到持續的擔憂。

And I'm certainly not going to say that there is an uncertainty in this world and that there isn't you know, a chance that, that we see a recession or things like that come up. But I think when you look at the performance of this business with a lot of uncertainty in parts of the business where we've been selling them, that should give us a lot of credibility for our ability to execute. And I just want to end with thanking the teams for all the work that they've done on those points to be able to be in a position where we have records across the portfolio and wish everyone a happy Halloween and a good start to the holiday season because everything kind of picks up in velocity from here.

我當然不會說這個世界存在不確定性，而且我們沒有機會看到經濟衰退或類似的情況出現。但我認為，當你看到這項業務的業績時，我們銷售這些業務的部分業務存在很大的不確定性，這應該會為我們的執行能力帶來很大的可信度。最後，我只想感謝團隊在這些方面所做的所有工作，使我們能夠在整個產品組合中保持記錄，並祝每個人萬聖節快樂，假期有一個良好的開始賽季因為一切都從這裡開始加速。

Thanks everyone.

謝謝大家。

Thank you. This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。