OUTFRONT Media Inc (OUT) 2024 Q2 法說會逐字稿

Hello all and welcome to OUTFRONT Media's second quarter 2024 earnings call. My name is Lydia and I'll be your operator today. After the prepared remarks, there'll be an opportunity to ask questions. If you'd like to ask a question during the Q&A, you can do so by pressing star followed by one on your telephone keypad. I'll now hand you over to Stephan Bisson, Head of Investor Relations to begin. Please go ahead.

大家好，歡迎參加 OUTFRONT Media 的 2024 年第二季財報電話會議。我叫莉迪亞，今天我將成為您的接線生。準備好發言後，將有機會提問。如果您想在問答過程中提問，可以按電話鍵盤上的星號，然後再按一個。現在我將把您交給投資人關係主管 Stephan Bisson 開始。請繼續。

Good afternoon. and thank you for joining our 2024 Second Quarter Earnings Call. With me on the call today are Jeremy Male, Chairman and Chief Executive Officer, and Matthew Siegel, Executive Vice President and Chief Financial Officer. After a discussion of our financial results, we'll open the lines for a question-and-answer session. Our comments today will refer to the earnings release and a slide presentation that you can find on the Investor Relations section of our website, OUTFRONT.com. After today's call is concluded, a replay will be available there as well.

午安.感謝您參加我們的 2024 年第二季財報電話會議。今天與我一起參加電話會議的是董事長兼執行長 Jeremy Male 和執行副總裁兼財務長 Matthew Siegel。討論完我們的財務表現後，我們將開始問答環節。我們今天的評論將涉及收益發布和幻燈片演示，您可以在我們網站 OUTFRONT.com 的投資者關係部分找到這些內容。今天的電話會議結束後，也將重播。

This conference call may include forward-looking statements. Relevant factors that could cause actual results to differ materially from these forward-looking statements are listed in our earnings materials and in our SEC filings, including our 2023 Form 10-K and our June 30, 2024, 10-Q, which we expect to file this week. We will refer to certain non-GAAP financial measures on this call.

本次電話會議可能包含前瞻性陳述。我們的收益資料和SEC 文件中列出了可能導致實際結果與這些前瞻性陳述有重大差異的相關因素，包括我們的2023 年10-K 表格和2024 年6 月30 日的10-Q 表格，我們預計這些因素將在本週歸檔。我們將在本次電話會議上提及某些非公認會計準則財務指標。

Any references made to OIBDA today will be on an adjusted basis Reconciliations of OIBDA and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release, and on our website, which also includes presentations of prior period reconciliations.

今天對OIBDA 的任何引用都將在調整後的基礎上進行。 。

Also, please note that given the intra-quarter sale of our Canadian business, our consolidated results include only 67 days of Canada results, compared to 91 days in comparable prior year periods. Detailed historical financial results of the divested Canadian business can be found on page 23 of our slide presentation, and detailed historical US media financial results can be found on slide 22. Given the recent sale of our Canadian business, our remarks today will focus primarily on the results of our US media sales. Let me now turn the call over to Jeremy.

另請注意，考慮到我們加拿大業務的季度內出售，我們的綜合業績僅包括 67 天的加拿大業績，而去年同期為 91 天。被剝離的加拿大業務的詳細歷史財務結果可以在我們幻燈片演示的第 23 頁上找到，詳細的美國媒體歷史財務結果可以在幻燈片 22 上找到。鑑於最近出售了我們的加拿大業務，我們今天的演講將主要關注我們美國媒體銷售的結果。現在讓我把電話轉給傑瑞米。

Thank you, Stephan, and thanks to everyone for joining us on our call this afternoon. We're pleased to be here today to discuss our second quarter, during which we successfully completed the sale of our Canadian business, and more importantly, drove improving results in our US media business. As Stephan mentioned, our remarks today will focus primarily on our US media segment, given this represents essentially the entire remaining company moving forward.

謝謝你，史蒂芬，也謝謝大家今天下午加入我們的電話會議。我們很高興今天在這裡討論我們的第二季度，在此期間我們成功完成了加拿大業務的出售，更重要的是，推動了我們美國媒體業務業績的改善。正如史蒂芬所提到的，我們今天的演講將主要集中在我們的美國媒體部門，因為這基本上代表了整個剩餘公司的發展。

As you can see on slide 4, which summarizes our headline results, Our US media business grew revenues a solid 4%, driven by continued steady growth in billboard and impressive double-digit growth in transit. US media adjusted OIBDA grew nearly 10%, driven by the revenue growth I just described, combined with the US media expense growth of under 2%. US media and corporate adjusted OIBDA was up almost 8%. Consolidated AFFO grew a strong 9% to $85 million and puts us well on our way to meeting the guidance we laid out earlier this year. This growth is even more impressive given Canada contributed only $1.7 million to our consolidated adjusted OIBDA in the second quarter compared to $6.5 million last year.

正如您在投影片4 中看到的那樣，投影片4 總結了我們的整體業績，在廣告看板持續穩定成長和交通領域令人印象深刻的兩位數成長的推動下，我們的美國媒體業務收入增長了4%。在我剛才描述的營收成長的推動下，美國媒體調整後的 OIBDA 成長了近 10%，加上美國媒體費用成長低於 2%。美國媒體和企業調整後的 OIBDA 上漲近 8%。合併後的 AFFO 強勁成長 9%，達到 8,500 萬美元，使我們能夠順利實現今年稍早制定的指導方針。鑑於加拿大第二季度僅向我們調整後的綜合 OIBDA 貢獻了 170 萬美元，而去年為 650 萬美元，這一增長更加令人印象深刻。

On slide 5, you can see our US media revenues in more detail. Billboard revenues were up 2.3%. Local continues to be particularly strong with our more locally skewed markets leading our performance. Every region was up except the West, where LA was down due to soft media spend. Transit revenue was up nearly 11% versus the prior year, driven by particularly impressive growth in the New York MTA. Similar to the first quarter, our improved transit revenues were the result of solid performances from both local and national teams.

在投影片 5 上，您可以更詳細地看到我們的美國媒體收入。廣告看板收入成長 2.3%。本地業務持續表現強勁，我們的在地化市場引領了我們的業績。除西部地區外，所有地區均呈上升趨勢，而西部地區的洛杉磯則因媒體支出疲軟而下降。受紐約 MTA 尤其令人印象深刻的成長推動，交通收入比上年增長了近 11%。與第一季類似，我們交通收入的提高是本地和國家團隊出色表現的結果。

The breakdown of local and national revenues in our US media business can be seen on slide 5. Local was the primary driver of our revenue growth, up almost 7% during the quarter, while national grew slightly. On a consolidated basis, Our best performing categories in the second quarter were Legal Services, Financial, Utilities, CPG and Retail. On the weaker side were Entertainment, Alcohol, Restaurants, Employment and Auto.

我們的美國媒體業務的地方和國家收入細目可以在幻燈片 5 中看到。本地收入是我們收入成長的主要推動力，本季成長了近 7%，而全國收入則略有成長。綜合來看，我們第二季表現最好的類別是法律服務、金融、公用事業、消費品和零售。較弱的方面是娛樂、酒精、餐廳、就業和汽車。

Slide 6 illustrates our solid US media billboard yield growth, up almost 4% year over year, reaching just under $3,000, which is a fresh second quarter record for OUTFRONT. The largest drivers of this yield growth remain our digital conversions, rates, occupancy, and higher automated transaction revenue.

幻燈片 6 展示了我們美國媒體廣告看板收益的穩健增長，同比增長近 4%，達到略低於 3,000 美元，這是 OUTFRONT 第二季度的新紀錄。這種收益成長的最大驅動力仍然是我們的數位轉換、費率、入住率和更高的自動化交易收入。

Slide 7 highlights our strong US media digital performance with revenue growing 10% in the quarter, representing over 34% of our total revenues, up from 32% last year. US digital billboard was up nearly 6%, while transit was up almost 24%, fueled predominantly by the MTA. Automated revenues in the quarter represented 16% of our digital revenues, up from 14% during the first quarter. With that, let me now hand it over to Matt to review the rest of our financials.

幻燈片 7 凸顯了我們強勁的美國媒體數位業績，本季營收成長了 10%，占我們總營收的 34% 以上，高於去年的 32%。美國數位廣告看板上漲了近 6%，而交通運輸則上漲了近 24%，這主要是由 MTA 推動的。本季自動化收入占我們數位收入的 16%，高於第一季的 14%。現在，讓我將其交給馬特來審查我們其餘的財務狀況。

Thanks, Jeremy. And good afternoon, everyone. As with Jeremy's remarks, many of my comments will focus on our US media segment, as these are the primary operations going forward. For a deeper dive into our financial statements, please turn to slide 8 for a more detailed look at our US media expenses. Total US media expenses were up a little over $5 million, or less than 2% year over year. US media billboard lease expense declined by just over $5 million, or a little more than 4% year over year. This decline was driven primarily by lower revenues on the portion of our inventory operated on leases with revenue share arrangements, which are principally located in our largest markets, such as New York and Los Angeles. US media transit franchise expense was flat versus the prior year, with the non-renewal of a loss-making contract and a small benefit from amendments to existing transit agreements, offsetting the higher MAG payments of the MTA related to the annual CPI adjustments. US media posting maintenance and other expenses were up 7% versus the prior year, primarily due to higher compensation-related expenses, higher posting and rotation costs driven by higher business activity, and higher maintenance and utilities costs. US media SGA expense was up 9% or just over $7 million during the quarter due to higher compensation related expenses, provision for doubtful accounts, one-time severance costs, and rent related to transitions to new offices, partially offset by lower professional fees.

謝謝，傑里米。大家下午好。與傑里米的言論一樣，我的許多評論將集中在我們的美國媒體部門，因為這些是未來的主要業務。若想更深入了解我們的財務報表，請參閱投影片 8，以更詳細地了解我們的美國媒體支出。美國媒體總支出略高於 500 萬美元，年增幅不到 2%。美國媒體廣告看板租賃費用年減略高於 500 萬美元，即略高於 4%。這一下降主要是由於我們以收入分成安排租賃方式營運的庫存部分收入下降，這些庫存主要位於紐約和洛杉磯等我們最大的市場。美國媒體運輸特許經營費用與上年持平，不續簽虧損合約以及對現有運輸協議的修訂帶來的小額收益，抵消了 MTA 因年度 CPI 調整而支付的較高 MAG 費用。美國媒體發布維護和其他費用比前一年增長了 7%，主要是由於薪酬相關費用增加、業務活動增加導致的發布和輪換成本增加以及維護和公用事業成本增加。美國媒體SGA 費用在本季度增長了9%，即略高於700 萬美元，原因是薪酬相關費用、呆賬撥備、一次性遣散費以及與過渡到新辦公室相關的租金增加，但部分被較低的專業費用所抵銷。

Slide 9 provides additional detail on the sources of US media OIBDA. Total US media OIBDA was up nearly 10% to over $140 million. US billboard OIBDA was up 3.5% to $136 million, representing a margin of 37.8% of 50 basis points year over year. For the full year, we continue to believe that billboard margins will be up on an annual basis. Transit OIBDA improved by nearly $8 million to just under $5 million. The improvement was primarily due to better revenue Jeremy described earlier in the call, particularly at the New York MTA.

幻燈片 9 提供了有關美國媒體 OIBDA 來源的更多詳細資訊。美國媒體 OIBDA 總額成長近 10%，達到超過 1.4 億美元。我們廣告看板 OIBDA 成長 3.5%，達到 1.36 億美元，利潤率為 37.8%，年增 50 個基點。就全年而言，我們仍然相信廣告看板利潤率將逐年上升。交通 OIBDA 增加了近 800 萬美元，達到近 500 萬美元。這項改善主要是由於 Jeremy 在電話會議之前提到的收入增加，特別是紐約 MTA 的收入增加。

On slide 10, you can see our combined US media and corporate OIBDA, which was up 7.7% to $124 million. Q2 corporate expense was up over $3.5 million, almost entirely due to higher consulting fees. Total costs of this project year to date were approximately $5 million, and we expect another $3 million to be spent through the third quarter.

在投影片 10 上，您可以看到我們合併的美國媒體和企業 OIBDA，成長了 7.7%，達到 1.24 億美元。 Q2公司費用增加超過 350 萬美元，幾乎完全是因為諮詢費用增加。該項目今年迄今的總成本約為 500 萬美元，我們預計第三季將再支出 300 萬美元。

Turning to capital expenditures on slide 11, Q2 consolidated capex spend was just under $24 million, including about $8 million of maintenance spend. This maintenance spend was flat with last year, while growth was a little higher due to spend that was committed as part of the agreement to start Canadian business. Q2 US media CapEx spend was $18.5 million, including just under $7 million of maintenance spend, each down about a million dollars. For the full year, we believe we will spend approximately 75 to $85 million of total CapEx. Over 300 of our digital billboards were divested as part of the Canadian transaction, and we ended the quarter with around 1,900 digital billboards, which represents just under 5% of our inventory. For the year, we continued to target 150 to 200 total digital billboard additions. In transit, we added nearly 1,800 digital displays in the US in the second quarter. As the first quarter, the installations were mostly small format screens on subway and train cars, in the New York MTA, and we continue to expect to substantially complete our initial deployment commitment in 2024. We impaired the $8.8 million of MTA deployment spend in the second quarter. Looking forward, our MTA transit performance through the first half of the year was slightly better than the expectations and assumptions included in our year-end 2023 financial model. We now expect to be at least cashflow neutral on an undiscounted basis from the third quarter of 2024 through to the end of the amended base term of the agreement. If our MTA cashflow performance continues to be in line with or better than our current model, we would not expect to incur additional impairments related to this contract in the future.

轉向幻燈片 11 的資本支出，第二季綜合資本支出略低於 2,400 萬美元，其中包括約 800 萬美元的維護支出。維護支出與去年持平，但由於作為啟動加拿大業務的協議的一部分而承諾的支出，增長略高。第二季美國媒體資本支出為 1,850 萬美元，其中包括近 700 萬美元的維護支出，每項減少約 100 萬美元。我們相信全年資本支出總額將約為 75 至 8,500 萬美元。作為加拿大交易的一部分，我們剝離了 300 多個數位廣告牌，截至本季末，我們擁有約 1,900 個數位廣告牌，僅占我們庫存的不到 5%。今年，我們的目標仍然是增加 150 至 200 個數位廣告看板。第二季度，我們在美國增加了近 1,800 個數位顯示器。第一季度，紐約 MTA 的地鐵和火車車廂上的安裝主要是小型螢幕，我們繼續期望在 2024 年基本完成我們的初步部署承諾。我們在第二季減少了 880 萬美元的 MTA 部署支出。展望未來，我們上半年的 MTA 交通績效略優於我們 2023 年年底財務模型中包含的預期和假設。我們現在預計，從 2024 年第三季到協議修訂後的基本期限結束，在未折現的基礎上，現金流至少保持中性。如果我們的 MTA 現金流表現繼續符合或優於我們目前的模型，我們預計未來不會產生與該合約相關的額外減損。

Now turning to AFFO on slide 12, you can see the bridge to our Q2 AFFO of nearly $85 million. The almost $7 million year-over-year increase was due to improvements in OEBDA, cash taxes and other items slightly offset by higher interest expense due to last year's fourth quarter senior note refinancing. For 2024, we continue to expect that reported consolidated AFFO growth will be in the high single digit range from 2023's AFFO of $271 million. This guide considers the five months we operated the Canadian business prior to its sale compared to 12 months last year.

現在轉向幻燈片 12 上的 AFFO，您可以看到通往第二季度 AFFO 近 8500 萬美元的橋樑。年比增加近 700 萬美元是由於 OEBDA、現金稅和其他項目的改善，但去年第四季高級票據再融資導致的利息支出增加略有抵銷。到 2024 年，我們繼續預計報告的綜合 AFFO 成長將比 2023 年 AFFO 的 2.71 億美元高出個位數。本指南考慮了我們在出售之前運營加拿大業務的 5 個月，而去年為 12 個月。

Please turn to slide 13 for an update on our balance sheet. Committed liquidity is nearly $665 million, including around $50 million of cash, almost $500 million available via our revolver, and $120 million available via our accounts receivable securitization facility, which now matures in June, 2027. As of June 30, our total net leverage was five times flat, down from 5.4 times as of March 31st, primarily due to the sale of our Canadian business. We continue to target a net leverage range of 4.25 times, and we plan to continue de-levering through growth and adjusted OIBDA. As of June 30, we paid down $200 million of our term loan using Canadian proceeds and $90 million on our accounts receivable facility using freed up capital.

請參閱投影片 13 以了解我們資產負債表的最新情況。承諾的流動性接近6.65 億美元，包括約5,000 萬美元的現金、透過我們的左輪手槍提供的近5 億美元以及透過我們的應收帳款證券化工具提供的1.2 億美元，該工具現已於2027 年6 月到期。截至 6 月 30 日，我們的總淨槓桿率持平於 5 倍，低於 3 月 31 日的 5.4 倍，這主要是由於出售了我們的加拿大業務。我們繼續將淨槓桿率目標定為4.25倍，並計劃透過成長和調整後的OIBDA繼續去槓桿。截至 6 月 30 日，我們使用加拿大收益償還了 2 億美元的定期貸款，並使用釋放的資本償還了 9,000 萬美元的應收帳款融資。

Turning to our dividend, we announced today that our board of directors approved another $0.30 cash dividend payable on September 27 to shareholders of record at the close of business on September 6.

談到股息，我們今天宣布，董事會批准於 9 月 27 日向 9 月 6 日收盤時在冊的股東支付 0.30 美元的現金股息。

As a reminder, based on our current operational expectations and the taxable gain created with the sale of our Canadian business, which closed on June 7, we believe we will need to pay a larger dividend later in the year for re-compliance. To maximize the de-levering goal of the sale of our Canadian business, the board has the optionality to pay a portion of the larger dividend in common stock, which would be issued on a pro-rata basis to current shareholders. There were no larger notable acquisitions made during the quarter, and looking at our current acquisition pipeline, we continue to expect our 2024 deal activity will look like that of 2023. In closing, we accomplished a lot in the quarter, and we continue to be enthusiastic about the remainder of the year to come. With that, let me turn the call back to Jeremy.

提醒一下，根據我們目前的營運預期以及 6 月 7 日關閉的加拿大業務出售所產生的應稅收益，我們認為我們將需要在今年稍後支付更大的股息以重新合規。為了最大限度地實現出售加拿大業務的去槓桿化目標，董事會可以選擇以普通股支付較大股息的一部分，這些股息將按比例向現有股東發行。本季沒有發生較大規模的值得注意的收購，從我們目前的收購管道來看，我們仍然預計 2024 年的交易活動將與 2023 年類似。最後，我們在本季度取得了許多成就，並且我們繼續對未來一年的剩餘時間充滿熱情。接下來，讓我把電話轉回給傑里米。

Thanks, Matt. We were pleased with our second quarter performance, which we believe has set us up for a successful 2024. Looking forward to the third quarter, and based on what we are seeing in the business as of today, we estimate that Q3 US media revenue growth will be comfortably in the mid-single-digit range, with billboard accelerating from its Q2 level and transit growing in the high single-digit range. This is a reflection of national trends picking up and local continuing to display solid growth.

謝謝，馬特。我們對第二季的業績感到滿意，我們相信這為我們在 2024 年取得成功奠定了基礎。展望第三季度，根據我們今天所看到的業務情況，我們估計第三季度美國媒體收入增長將輕鬆保持在中個位數範圍內，廣告牌比第二季度的水平和交通運輸加速增長在高個位數範圍內成長。這反映了全國趨勢的回升和本地經濟持續穩健的成長。

OUTFRONT is entering the third quarter as a strictly domestic operation for the very first time, and we remain incredibly excited about the many opportunities that lie ahead. US Out of Home is poised to continue its organic growth as it remains one of the few sources of unassailable viewership as other mediums continue to see audience declines. Disorganic growth will continue to be enhanced by further digitization, which will remain a key driver as we expand our digital footprint and continue to benefit from growth in automated revenues.

OUTFRONT 首次作為嚴格的國內業務進入第三季度，我們對未來的許多機會仍然感到非常興奮。美國戶外媒體預計將繼續其有機成長，因為它仍然是少數無可爭議的收視率來源之一，而其他媒體的觀眾人數繼續下降。進一步的數位化將繼續增強無組織的成長，這將仍然是我們擴大數位足跡並繼續受益於自動化收入成長的關鍵驅動力。

And last but not least, we expect that our transit business will continue to recover very quickly and we'll seek to improve the economics of each of these agreements as they come up for renewal.

最後但並非最不重要的一點是，我們預計我們的運輸業務將繼續快速恢復，並且我們將在續簽這些協議時尋求提高每項協議的經濟效益。

And with that operator, let's now open the lines for questions.

現在讓我們透過該接線員開始提問。

(Operator Instructions) David Karnovsky, JPMorgan.

（操作員指示）David Karnovsky，摩根大通。

Hi, thank you. Sharon, just go back to your comments on the guide before. You said Q3 media groups, I think, comfortably admit single. Does that mean you think there's room to potentially do better? Maybe macro trends break more favorably. And then digital transit looks like accelerated a bit in the quarter. I think maybe you had turned on programmatic and automated buying in New York in MTA. I just want to see what the reception from marketers has been to that so far. Thanks.

你好，謝謝。莎倫，回到你之前對指南的評論。你說第三季媒體集團，我認為，輕鬆地承認單身。這是否意味著您認為還有做得更好的空間？也許宏觀趨勢會更有利地突破。本季數位傳輸似乎有所加速。我想也許您已經在紐約 MTA 開啟了程序化和自動購買。我只是想看看行銷人員到目前為止對此的反應如何。謝謝。

Yeah, thanks for the question, David. Let's just hit the MTA point four first. Yeah, we did switch on programmatic to our live boards. in the MTA. There are still some boards on train, for example, that still need to be connected, but certainly will connect on live boards. And we're starting to see some pickup and it'll take a bit of time, but we're excited at what automated revenues will do for digital on the MTA. Looking at the guide, yeah, we said that we would be comfortably in the mid-single-digit range. And we pointed to two things really. One was the improving trend in billboard, and secondly, it was improving trend in National. So from that point of view, we'd expect numbers to be a little bit ahead of where we were in Q2. Thank you.

是的，謝謝你的提問，大衛。我們先來看看 MTA 的第四點。是的，我們確實將程式化切換到了即時看板。在 MTA 中。例如，火車上仍然有一些板子仍然需要連接，但肯定會在即時板上連接。我們開始看到一些回升，這需要一些時間，但我們對自動化收入將為 MTA 數位服務帶來的影響感到興奮。看看指南，是的，我們說過我們將輕鬆地處於中等個位數範圍內。我們確實指出了兩件事。一是廣告看板的改善趨勢，二是全國的改善趨勢。因此，從這個角度來看，我們預計數字將略高於第二季的水平。謝謝。

Cameron McVeigh, Morgan Stanley.

卡梅倫‧麥克維，摩根士丹利。

Thanks. I was just curious if you could discuss your view of the state of the current macro environment and how advertiser demand has been trending. When you think about local versus national advertising, why do you think we're continuing to see this divergence and has that continued to be the case into the third quarter? Thanks.

謝謝。我只是好奇您是否可以討論一下您對當前宏觀環境狀況以及廣告商需求趨勢的看法。當您考慮本地廣告與全國廣告時，您認為為什麼我們會繼續看到這種差異？謝謝。

Thanks for the question. I must admit, I don't think the divergence we're seeing is particularly down to the macro trends that we've been seeing over the last few weeks. When you drill into it, actually the main down within our national business has really been entertainment. And that's been sort of a combination of movies, of streaming a number of factors that still haven't quite repaired and recovered from the disruption to the whole sort of media slate and TV slate driven by the actors and writers strike at the back end of the year. I think the other thing I'll point to is that in total, It's not as though national is not growing. It's just not growing as fast as local is. So I think that would be my comments there.

謝謝你的提問。我必須承認，我認為我們所看到的差異並不是特別歸因於過去幾週我們所看到的宏觀趨勢。當你深入研究它時，實際上我們國家業務的主要支柱實際上是娛樂。這是電影、串流媒體等許多因素的結合，這些因素仍然沒有完全修復並從演員和作家罷工所驅動的整個媒體板和電視板的中斷中恢復過來。我想我要指出的另一件事是，總的來說，國家並不是沒有成長。它只是沒有本地增長那麼快。所以我想這就是我的評論。

Great, thanks. And then just secondly, it's strong growth in the digital transit segment. Curious how much of that is comp related versus maybe specific vertical recovery? or more supply coming in with the programmatic ad tech integration you spoke to earlier? Thanks.

太好了，謝謝。其次，數位交通領域的強勁成長。好奇其中有多少是與補償相關的，而不是與特定的垂直恢復相關的？或者您之前談到的程序化廣告技術整合帶來了更多供應？謝謝。

Yeah, thanks, Cameron. I mean, the answer is we have seen a definitive increase across the hurdles, but we also do have, in total, more screens in the transit environment in the MTA as we built out as we built out last year. And we're really looking forward to benefiting from that digital as we go forward. I'm not certain how much time you guys spend down on the subway right now, but I mean, the product has never, has never looked better. And the fact that we can have the opportunity to be such a brilliant creative and now also that the delivery of programmatic, which means that it can be incredibly, incredibly timely. I think we're going to really benefit from those investments that we've made over the last couple of years as we go forward from here.

是的，謝謝，卡梅倫。我的意思是，答案是我們已經看到跨越障礙的明確增加，但總的來說，我們在 MTA 的交通環境中也確實擁有了更多的螢幕，就像我們去年一樣。我們非常期待在前進的過程中從數位化中受益。我不確定你們現在在地鐵上花了多少時間，但我的意思是，該產品從未、從未看起來更好。事實上，我們有機會成為如此出色的創意人員，現在也可以提供程式化服務，這意味著它可以非常非常及時。我認為，當我們繼續前進時，我們將真正受益於我們過去幾年所做的投資。

Great, thank you.

太好了，謝謝。

Ian Zaffino, Oppenheimer.

伊恩·扎菲諾，奧本海默。

I agree. Thank you very much. Um I just wanted to ask a little bit more on the transit side, um, cause it looks like ridership is not really moved a whole lot over the past year or so. Um, can you help us understand, um are, are you at a kind of a ridership level that you are happy with? I mean, you're growing 10% or so. Um, but you know, what else can you potentially do to, um maybe get revenues higher in the absence of some ridership growth. And if you do see ridership growth, is that kind of like a one-to-one in that if we get back to, let's just say 80% of pre-COVID that'd be 15% higher revenues. Is that the way to think about it? Or maybe a little bit more of a deeper discussion there. Thanks.

我同意。非常感謝。嗯，我只是想在交通方面多問一點，嗯，因為看起來在過去一年左右的時間裡，客流量並沒有真正發生很大變化。嗯，你能幫助我們了解一下，嗯，你的客流量水準是否令你滿意？我的意思是，你的成長率是 10% 左右。嗯，但是你知道，在客流量沒有成長的情況下，你還可以做些什麼來獲得更高的收入。如果你確實看到客流量成長，那是不是有點像一對一的成長，如果我們回到疫情前的 80%，營收就會增加 15%。是這樣思考的嗎？或者也許可以進行更深入的討論。謝謝。

Okay. So thanks for questioning. I guess the first thing is that actually, MCA revenues were well ahead of that double-digit growth rate that we gave in total, and also over-indexing on ridership. So that's very good news. I think we said right away, right away along from, if we go back to the dark days of the early 2020, that we expected that at 80 to 85% of ridership, that we would be able to generate 100% of revenue. But we continue to believe that to be the case. And what's great is that actually ridership's been bumping along at somewhat similar levels for the last few months. And this expansion has really come from, as you say, it's come from just having a great product there. And also I think an acceptance of advertisers are really starting to, once again, see the huge benefits of advertising in the transit medium.

好的。所以謝謝你的提問。我想第一件事是，實際上，MCA 的收入遠遠超過了我們給出的兩位數成長率，而且對客流量的指數也過高。所以這是一個非常好的消息。我想我們馬上就說過，如果我們回到 2020 年初的黑暗日子，我們預計在 80% 到 85% 的客流量下，我們將能夠產生 100% 的收入。但我們仍然相信情況確​​實如此。令人高興的是，在過去的幾個月裡，實際上客流量一直在以類似的水平波動。正如你所說，這種擴張確實來自於那裡擁有出色的產品。而且我認為廣告商的接受度確實開始再次看到在交通媒體上做廣告的巨大好處。

Okay, thank you. And then I think you guys mentioned something about paying some of the dividend in stock. How would that work as far as the mechanics of that, the timing of that, and just maybe a little bit of a deeper discussion, thanks.

好的，謝謝。然後我想你們提到了一些關於支付部分股票股利的事情。就其機制、時間安排以及可能進行一些更深入的討論而言，這將如何運作，謝謝。

Thanks, Ian. Matt, I'll take that one. As a REIT, we have some flexibility as to how and what form we pay our dividend. Obviously also as a REIT, we're required to distribute most of capital gain and most of our income. So we're able to pay up to 85%, I'm sorry, 80% of a declared dividend in stock if the board so chose. like any split currency opportunity. Shareholders would get the choice of if they wanted cash or stock. And then after those choices are made, the excess would be allocated pro rata. So you could picture it's possibly something similar to a right-flank offering. So no one gets diluted. Everyone gets kind of the same percentage of shares. I know it's been done by other REITs and often accompanied of reverse split to standardize the number of shares, but again, those decisions haven't been made here at this time. Okay, thank you very much. Thanks.

謝謝，伊恩。馬特，我要那個。作為房地產投資信託基金，我們在支付股息的方式和形式方面具有一定的靈活性。顯然，作為房地產投資信託基金，我們需要分配大部分資本利得和大部分收入。因此，如果董事會選擇的話，我們最多可以支付 85%（抱歉，80%）的已宣派股息。就像任何分割貨幣的機會一樣。股東可以選擇想要現金還是股票。然後在做出這些選擇後，超出的部分將按比例分配。所以你可以想像這可能類似右翼的進攻。所以沒有人會被稀釋。每個人都獲得相同比例的股份。我知道其他房地產投資信託基金也這樣做過，並且經常伴隨著反向分割以標準化股票數量，但同樣，這些決定目前還沒有在這裡做出。好的，非常感謝。謝謝。

Jason Bazinet, Citi.

傑森·巴齊內特，花旗銀行。

Thanks. I just had a quick question on the Canadian disposition. I think we were all modeling it as a June 30 close. And since it closed on the 7th of June, is the right math to take this slide 23 in your presentation and just do the proportional math of the 23 days that we're missing? In other words, the column that you're showing, is that a full quarter through June 30? Or does that column represent the 60 some odd days, 67 days that you owned it? Does that make sense?

謝謝。我只是想問加拿大的態度。我認為我們都將其建模為 6 月 30 日收盤。由於它於 6 月 7 日結束，在您的簡報中使用這張投影片 23 並僅對我們錯過的 23 天進行比例數學計算是否正確？換句話說，您顯示的專欄是截至 6 月 30 日的整個季度嗎？或者該欄是否代表您擁有它的 60 天、67 天？這樣有道理嗎？

It's the full quarter, but it's also 67 days that we owned it. So obviously, as we were preparing for sale, not causal, but maybe coincidental, you can see performance over the first 67 days was probably less than it was last year. And then just a shorter number of days, so the Canada comparison is a tough

這是整個季度，但也是我們擁有它的 67 天。很明顯，當我們準備出售時，您可以看到前 67 天的表現可能低於去年，這不是因果關係，而是巧合。然後天數更短，所以與加拿大的比較是一個艱難的選擇

Okay, that's great. I understand. Thank you. Thanks.

好的，太好了。我明白。謝謝。謝謝。

Lance Vitanza, TD Cowen.

蘭斯·維坦扎，TD·考恩。

Hi, thanks, guys. And nice quarter. Back on the West Coast, Southern California, Los Angeles, I was a bit surprised to see LA or to hear that LA is still struggling given the end of the writer's strike. And I know that there's a ramp, but how is that region trending into the third quarter and the back half? And when do you expect to see us in that region, back above kind of pre-riders strike levels? Is that possible in the back half or is that a 2025 event? Thanks.

嗨，謝謝，夥計們。和美好的季度。回到西海岸、南加州、洛杉磯，我有點驚訝地看到洛杉磯或聽到洛杉磯在作家罷工結束後仍在苦苦掙扎。我知道有一個增長，但該地區第三季和後半段的趨勢如何？您預計什麼時候會在該地區看到我們回到騎手罷工前的水平之上？這可能會在後半段發生嗎？謝謝。

Yeah, it's a little bit hard to say exactly. What we can see as we look into Q3 is that some of the TV money has come back. So that's looking positive. But actually, the movie slate, if you look at it, there are just fewer movies and fewer tentpole movies in Q3 versus last year. So that's where we'll see the delta. In terms of movie slate, I don't think we're going to really start it doesn't look like that completely repairs itself in 2024. But hopefully, as I say, with TV coming back in and maybe an improvement coming through from some of the streamers, maybe we'll see entertainment not being quite the drag in the latter half of the year as it was for the last few months.

是的，確切地說有點難。當我們研究第三季時，我們可以看到一些電視收入回來了。所以這看起來是正面的。但實際上，如果你看一下電影名單，與去年相比，第三季的電影數量和主打電影都更少。這就是我們將看到三角洲的地方。就電影片單而言，我認為我們不會真正開始，它看起來不會在 2024 年完全修復。但希望，正如我所說，隨著電視的回歸，也許一些串流媒體的改進，也許我們會看到娛樂在今年下半年不再像過去幾個月那樣成為拖累。

Well, that's super helpful. And then just sort of a follow up on that. So is it the case that as we think about the kind of you know, media spend in LA, is it sort of heavily weighted? Is it like 80% of that movies, 20% television, or is it something closer to 50-50, or?

嗯，這非常有幫助。然後就是對此的後續行動。那麼，當我們考慮洛杉磯的媒體支出時，情況是否如此？是像 80% 的電影、20% 的電視，還是接近 50-50 的東西？

Yeah, I mean, if you look at it for the second quarter, and we sort of look at the numbers there, and I'm not sort of thinking LA specifically, but there was reasonable weighting between TV and, it was reasonable weighting between TV and film. So we'll still notice it as we go into Q3, as I say, it's just likely to not be quite as obvious.

是的，我的意思是，如果你看第二季度，我們會看那裡的數字，我並不是專門考慮洛杉磯，但電視之間的權重是合理的，電視之間的權重是合理的電視和電影。因此，當我們進入第三季度時，我們仍然會注意到這一點，正如我所說，它可能不會那麼明顯。

Thanks.

謝謝。

Jim Goss, Barrington Research.

吉姆‧戈斯，巴靈頓研究中心。

All right, thank you. A couple of things. One, I was wondering, we talk a lot about the impact on transit and the reduced ridership, that sort of thing. I was wondering, are there any lingering impacts from the shifts to greater share of work at home in terms of ad exposure or pricing or anything, any other metrics we ought to be thinking about between your city and suburban areas, especially the urban locations?

好的，謝謝。有幾件事。一，我想知道，我們談了很多關於對交通的影響和客流量減少之類的事情。我想知道，在廣告曝光或定價或任何其他方面，我們應該考慮您所在城市和郊區（尤其是城市地區）之間的任何其他指標，在家工作的增加是否會產生任何揮之不去的影響？

Thanks for the question, Jim. The answer is not so much so. The interesting thing about work from home, as we said, is that obviously it impacts absolute total number of eyeballs, but it doesn't actually, it still has very, very similar reach to that which we had pre-COVID. you know, typically people would be doing seven or eight journeys rather than 10. But it's the same number of individual peoples in the same region. So, no, I don't think we're going to, we're not really seeing any lingering impacts of that. And as I say, broadly, I think most models show that there will be a gradual increase in ridership so we look forward to any benefit that that might bring as well as we look into the future combined with the digital investments that we've been making.

謝謝你的提問，吉姆。答案並非如此。正如我們所說，在家工作的有趣之處在於，它顯然會影響眼球的絕對總數，但實際上並非如此，它的影響範圍仍然與新冠疫情爆發前非常相似。你知道，通常人們會進行七、八次旅行，而不是 10 次。但這是同一地區的相同數量的個體民族。所以，不，我認為我們不會這樣做，我們並沒有真正看到它的任何揮之不去的影響。正如我所說，總的來說，我認為大多數模型都表明客流量將會逐漸增加，因此我們期待這可能帶來的任何好處，以及我們對未來的展望與我們一直在進行的數位投資相結合。

Okay, and you know, you've always talked about the reach versus impressions issue regarding transit ridership. Has it been borne out to be true that maybe fewer impressions, but the same reach has really been to your benefit in terms of coming back more quickly.

好的，您知道，您一直在談論有關公車客流量的覆蓋面與展示次數問題。事實證明，雖然展示次數可能會減少，但相同的覆蓋範圍確實對您有好處，可以更快地返回。

Well, if you look at the gradual improvement that we've had, we've continued to over-index pretty much throughout against ridership. That, I think, shows the value, if you like, the incremental value we're getting out of that delta, if you like, of reach versus frequency. So, yeah, I think all points in a very positive direction.

好吧，如果你看看我們所取得的逐步改進，我們在整個客流量方面繼續過度索引。我認為，如果你願意的話，這顯示了我們從覆蓋範圍與頻率的增量中獲得的增量價值。所以，是的，我認為一切都朝著非常積極的方向發展。

Okay. Last thing, with the sale of Canada bringing in considerable cash, will it have any implications in terms of any of your other capital plans? Perhaps a more intense M&A focus or anything of that nature?

好的。最後一件事，隨著出售加拿大帶來大量現金，這會對您的其他資本計劃產生任何影響嗎？也許是更強烈的併購重點或類似性質的事情？

Jim, it's Matt. Probably nothing immediate, but it certainly gets us back in a more comfortable leverage range. And as we continue to de-lever, it would probably bring us back to material M&A opportunities quicker than we would have done without the sale of Canada. So we think it gives us a lot more flexibility and a lot more balance sheet strength.

吉姆，我是馬特。也許沒有什麼立竿見影的效果，但它確實讓我們回到了更舒適的槓桿範圍。隨著我們繼續去槓桿化，這可能會讓我們比不出售加拿大更快地恢復實質併購機會。因此，我們認為這為我們帶來了更大的靈活性和更強的資產負債表實力。

All right. Thanks very much. Appreciate it. Thank you.

好的。非常感謝。欣賞它。謝謝。

We have no further questions in the queue, so I'll turn the call back over to Jeremy Mel for any closing comments.

我們隊列中沒有其他問題，因此我會將電話轉回傑里米·梅爾以獲取任何結束意見。

Thanks, Lydia. And thanks to everyone for joining us today. I look forward to seeing many of you at various conferences and events. um as we move through summer but those who I don't look forward to presenting our Q3 results to you in November. Thank you very much.

謝謝，莉迪亞。感謝大家今天加入我們。我期待在各種會議和活動中見到你們中的許多人。嗯，隨著我們進入夏季，但我不期待在 11 月向您展示我們的第三季結果。非常感謝。

This concludes today's call. Thank you for joining. You may now disconnect your line.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。