NYSE:OUT OUTFRONT Media Q3 2024 Earnings Report $16.50 -0.03 (-0.15%) Closing price 03:59 PM EasternExtended Trading$16.48 -0.02 (-0.12%) As of 05:32 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast OUTFRONT Media EPS ResultsActual EPS$0.19Consensus EPS $0.40Beat/MissMissed by -$0.21One Year Ago EPS$0.47OUTFRONT Media Revenue ResultsActual Revenue$451.90 millionExpected Revenue$456.38 millionBeat/MissMissed by -$4.48 millionYoY Revenue Growth-0.60%OUTFRONT Media Announcement DetailsQuarterQ3 2024Date11/12/2024TimeAfter Market ClosesConference Call DateTuesday, November 12, 2024Conference Call Time8:30AM ETUpcoming EarningsOUTFRONT Media's Q2 2025 earnings is scheduled for Tuesday, August 5, 2025, with a conference call scheduled at 4:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by OUTFRONT Media Q3 2024 Earnings Call TranscriptProvided by QuartrNovember 12, 2024 ShareLink copied to clipboard.There are 10 speakers on the call. Operator00:00:00Hello, everyone, and welcome to Outfront Media's Third Quarter 2024 Earnings Call. My name is Lydia, and I'll be your operator today. After the prepared remarks, there'll be an opportunity for you to ask questions. Operator00:00:17I'll now hand you over to Stefan Bisson, Vice President of Investor Relations to begin. Please go ahead. Speaker 100:00:24Good morning, and thank you for joining our 2024 Q3 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 has concluded, a replay will be available there as well. Speaker 100:00:56This 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 ks and our September 30, 2024 Form 10 Q, which will be filed later today. We will refer to certain non GAAP financial measures on this call. Any references to OIBDA made 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 with prior period reconciliations. Speaker 100:01:37Also, please note that given the June sale of our Canadian business, our consolidated Q3 results do not include any Canada results compared to the comparable prior year period. Detailed historical financial results of the divested Canadian business can be found on Slide 25 of our slide presentation and detailed historical U. S. Media financial results can be found on Slide 24. Given the sale of our Canadian business, our remarks today will focus primarily on the results of our U. Speaker 100:02:02S. Media segment. Let me now turn the call over to Gerard. Speaker 200:02:09Thank you, Stefan, and thanks to everyone for joining us on our call this morning. It's a pleasure to report our Q3 results today, our first period as a fully domestic company. As Stefan just mentioned and similar to last quarter, our remarks today will focus almost entirely on our U. S. Media segment. Speaker 200:02:31As you can see on Slide 3, which summarizes our headline results, our U. S. Business grew revenues over 5%, driven by an acceleration in our billboard growth and high single digit growth in transit. U. S. Speaker 200:02:47Media adjusted OIBDA grew just over 11% driven by the revenue growth I just described combined with U. S. Media expense growth of just 3%. Together, U. S. Speaker 200:02:59Media and Corporate adjusted OIBDA was up 6%. Consolidated AFFO grew nearly 7% to $81,000,000 and puts us well on our way to achieving the high end of the growth target we laid out earlier this year. Our AFFO growth is impressive given that we are comparing against the seasonally strong quarter from last year that included our since divested Canadian business. On Slide 4, you can see our U. S. Speaker 200:03:34Media revenues in more detail. Billboard revenues were up 4.8%. Our strongest markets continue to be those that are more locally skewed such as those in New Jersey, Texas and Michigan. Every region was up except the West, which improved sequentially, but remained flattish due to some weakness in Los Angeles. Transit revenue was up 7.3% versus the prior year, driven by growth in all markets, including the New York MTA. Speaker 200:04:06As has been the case all year, our improved transit revenues was a result of solid performances from both our local and national teams. The breakdown of local and national revenues in our U. S. Media business can be seen on Slide 5. Local remains the primary driver of our growth, up almost 7%. Speaker 200:04:29National revenues improved from Q2 levels and were up a little over 3%. On a consolidated basis, our best performing categories in the Q3 were retail, tech, utilities, telecom, legal and government political. On the weaker side were also health medical, alcohol and education. Slide 6 illustrates our solid U. S. Speaker 200:04:59Media billboard yield growth, up almost 7% year over year, reaching just under $3,000 The drivers of this yield growth remain our digital conversions, rates, occupancy and higher automated transaction revenue. Slide 7 highlights our strong U. S. Media Digital performance with revenue growing 10% in the quarter, representing over 32% of our total revenues, up from 31% last year. U. Speaker 200:05:34S. Digital billboard was up over 11%, while transit was up just over 8%, again driven predominantly by the MTA. Automated revenues comprised nearly 17% of our total digital revenues in the quarter. About 7% of our digital transit revenue came from automated channels, up from just under 2% last year, reinforcing our belief that the MTA's digital network is well aligned for automated selling. With that, let me now hand it over to Mats to review the rest of the financials. Speaker 300:06:12Thanks, Jeremy, and good morning, everyone. As for Jeremy's remarks, most of my comments will focus on our U. S. 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 U. Speaker 300:06:28S. Media expenses. Total U. S. Media expenses were up just under $10,000,000 or just over 3% year over year. Speaker 300:06:37U. S. Mill media billboard lease expense was up 1% versus last year. Small increases on a portion of our inventory on fixed rates were partially offset by lower revenues on the portion of our inventory operated on leases with revenue share arrangements primarily located in New York and Los Angeles. U. Speaker 300:06:57S. Media transit franchise expense was up 2% versus the prior year, principally due to higher mag payments to the MTA and higher revenues on contracts operated under revenue shares, partially offset by the non renewal of a loss making contract and small benefits from amendments to existing transit agreements. U. S. Media posting, maintenance and other expenses were up about 10% versus the prior year, primarily due to higher compensation related expenses and an increase in business activity driving higher posting and rotation costs. Speaker 300:07:32U. S. Media SG and A expense grew less than 3% or just over $2,000,000 during the quarter due to higher compensation related expenses, partially offset by lower professional fees and smaller provision for doubtful accounts. Slide 9 provides additional detail on the sources of U. S. Speaker 300:07:51Media OIBDA. Total U. S. Media OIBDA was up 11% to just over $133,000,000 U. S. Speaker 300:07:59Billboard OIBDA was up 8% to $136,000,000 which represents a margin of 37.8 percent, up 110 basis points year over year. Transit OIBDA improved by about $3,000,000 to a loss of just under $3,000,000 improvement was primarily due to the better revenues Jeremy described earlier in the call. On Slide 10, you can see our combined U. S. Media and corporate OIBDA, which was up about 6% to approximately $117,000,000 Q3 corporate expense was up $6,700,000 The majority was due to consulting fees and the impact of market fluctuations on an unfunded equity linked retirement plan. Speaker 300:08:43Turning to capital expenditures on Slide 11, Q3 U. S. Media CapEx spend was $17,600,000 including $5,500,000 of maintenance spend. Growth CapEx was up slightly while maintenance CapEx was down about $2,000,000 For the full year, we believe we will spend approximately $85,000,000 of total CapEx towards the higher end of our prior range including some spend to complete repairs related to Hurricane Milton. We ended the quarter with a little more than 1900 digital billboards, up 17% from the end of the second quarter and representing under 5% of our total billboard inventory. Speaker 300:09:24In transit, we added nearly 1400 digital displays in the U. S. In the Q3. As has been the case thus far this year, the installations were mostly small format screens on subway and train cars in the New York MTA and we are happy to confirm that we have substantially completed our initial deployment commitments. While speaking of the New York MTA, hopefully you noticed that we did not have an impairment charge this quarter as we currently expect net positive cash flows through the end of the amended term of the MTA agreements. Speaker 300:09:56As such, we would not expect to incur additional impairment charges going forward on our MTA equipment deployment cost spending. Now turning to consolidated AFFO on Slide 12, you can see the bridge on our Q3 AFFO of nearly $81,000,000 The $5,000,000 year over year increase was due to higher U. S. Media OIBDA, lower interest expense, lower U. S. Speaker 300:10:20Media maintenance CapEx and lower other maintenance CapEx, partially offset by lower other OIBDA, principally related to the Canada sale and corporate expense. For 2024, we expect that reported consolidated AFFO will be between $295,000,000 $300,000,000 Please turn to Slide 13 for an update on our balance sheet. Committed liquidity is over $600,000,000 including around $30,000,000 of cash, almost $500,000,000 available via revolver and $110,000,000 available under our accounts receivable securitization facility. As of September 30, our total net leverage was 5.0 times, down from 5.4 times year end of 2023. We expect to continue to delever within our 4 to 5 times target range through adjusted OIBDA growth. Speaker 300:11:18Turning to our dividend, we announced today that our Board of Directors approved a $0.75 per share special dividend totaling about $125,000,000 payable on December 31 to shareholders of record at the close of the business on November 15. About $50,000,000 or $0.30 per share will be paid in cash, the same per share amount as the 3 common dividends paid earlier this year and the remaining $0.45 per share or about $75,000,000 we paid in shares of our common stock. Stockholders will have the option to elect to receive a special dividend in all cash or all stock. However, if the aggregate amount of stockholder cash elections exceeds the $49,800,000 cash limit, then the payments of such cash elections will be made on a pro rata basis to shareholders who made the cash election with the balance paid in shares of common stock. Please refer to our SEC filings for further information on the special dividend election process. Speaker 300:12:21The special dividend represents the projected excess remaining balance of 100 percent of the company's 2024 distributable REIT income beyond the cash dividends paid earlier this year and has been sized to maximize the tax savings afforded to us by the REIT structure as well as retain the deleveraging effect of the Canada sale completed in June. To offset the small dilutive impact of the common stock portion of the special dividend, our Board of Directors also approved a reverse stock split to return our aggregate share count to pre stock dividend levels, which we expect to complete in January 2025. There were no large or notable acquisitions made during the quarter. Looking at our current acquisition pipeline, we expect to complete about a total of $25,000,000 of acquisitions this year. Before I pass the call back to Jeremy, I'll take a moment to explain some accounting revisions in our documents. Speaker 300:13:18In connection with finalizing our results for the Q3, we identified an error related to the treatment of non controlling interest on our balance sheet involving a few of our historical consolidated joint ventures. As noted in our earnings release, we concluded that the error was not material to our previously issued financial statements, but would require revisions to our current and comparative periods with respect to certain equity line items on our balance sheet and our consolidated statements of equity. There is no impact on our total assets and liabilities, income statement, statement of cash flows or EBITDA or AFFO related to this matter. As an administrative matter, we also decided to voluntarily revise our previously issued financial information to reflect the immaterial out of period adjustment related to variable billboard property lease costs that was already recorded and disclosed in the Q1 of 2023. Please refer to our SEC filings for further information on the revisions. Speaker 300:14:18In closing, it was a good quarter and we look forward to running through the tape to the end of the year. With that, let me turn the call back to Jeremy. Speaker 200:14:30Thanks very much, Matt. So before we jump into revenue guidance for the Q4, I want to mention a couple of recent developments which will impact comparability for the prior year, particularly as it relates to our billboard business. 1st, as many of you may have seen last month, we recently exited a billboard contract with the New York MTA creating a revenue headwind for Q4. Importantly, and as implied by our full year AFFO guidance, we expect a de minimis impact to our OIBDA and AFFO this year. For 2025, it will continue to be a revenue headwind, but it will also be very much margin enhancing. Speaker 200:15:13Secondly, the storms in the southeast will also present a small headwind as we proactively removed advertising copy for safety reasons and it took some time to replace given some of the damage in the area. We're immensely proud of the team in the region who responded to storms in such a safe and expeditious manner. So with that said, looking ahead to the Q4 and based on what we're seeing in the business as of today, we estimate that reported Q4 U. S. Media revenue growth will be around 3% with billboard in the low single digits and transit again growing high single digits led by the New York MTA. Speaker 200:15:53Before turning it over to Q and A, I wanted to speak a little bit more about the billboard contract in New York that we exited as it's illustrative of our broader strategy with regards how we approach contracts and partnerships with any counterparty, municipal or private or any property type, both billboard and transit. This particular contract exit reflects our focus on improving margins and the economic returns associated with these partnerships. When bidding on new or legacy contracts, particularly those with revenue shares and minimum annual guarantees, we strive to submit proposal that reflect the value brought to such a partnership by UPFRONT, requiring an attractive return to the company and its shareholders. So with that, operator, let's now open the line up for any questions. Operator00:16:51Thank you, Jeremy. Our first question today comes from David Karnovsky with JPMorgan. Please go ahead. Your line is open. Speaker 400:17:07Hey, thank you. Troy, maybe just following up on the Q4 guide. I don't know if you can size the impact of the MTA versus the storms you called out in the Southeast? And then I think the company that has won the MTA contract or bids for the MTA contract had flagged some strategic benefit. As a result of that, is there kind of was there any consideration on that front from your side? Speaker 400:17:34Just like to hear more on that. Speaker 200:17:38Yes. Thanks, Dave, for the question. So as to sort of scale, around about a point 5 of growth in that sort of range. And as I say, then there's a small piece for the storms that we mentioned. Look, with regards to strategic benefit, every company has to make their own decision when they bid these contracts. Speaker 200:18:04I wouldn't want to comment on our competitors' bidding strategy. But what I can say is that from our point of view, as the contract we bid it on the basis that would work for us and that's kind of all you can say in these situations. Speaker 400:18:27Okay. And then just on the property lease expense down, we would have thought maybe this would have firmed up a bit with a better result in national. So I'm curious if you could walk through national by market, what you're seeing in places like LA and New York relative to the other regions. And you mentioned the West flattish. I don't know if you can kind of walk through that and what you're seeing with the media vertical. Speaker 400:18:45Thanks. Speaker 300:18:49Yes. Speaker 200:18:51Sorry, Matt, you go. Speaker 300:18:54I'm sorry, it's Matt. As Jeremy mentioned in his prepared remarks, we're still seeing a little bit of weakness in L. A. And a little bit in New York. National is not back to where we'd like it. Speaker 300:19:08Still stronger right now in transit. So our billboard lease expense not up as much as we've said in past years. It's flipped around when New York and L. A. Overperformed or overperformed their peers. Speaker 300:19:24You see a little higher lease expense. We're seeing the opposite throughout most of this year. Speaker 400:19:34Thank you. Operator00:19:38Our next question comes from Cameron McVeigh with Morgan Stanley. Please go ahead. Speaker 500:19:46Hi, thanks. Just maybe an update on the NTA integration of some of the programmatic ad tech capabilities down there, how that's how the timing is shaping up and potential impact to transit results going forward? Speaker 200:20:05Thanks for the question, Cameron. You had to call out there that 7% of the revenue generated in Q3 on the MTA came through automated channels. Basically, we've now hooked up our live boards, which are the all of the screens that you see on platforms. We've also hooked up the urban panels that are the panels that you see above the subway entrances. What we haven't yet done is hook up on the mobile panels, which are on train on the subway and also Metro North and Long Island Railroads. Speaker 200:20:45So we'll get that benefit as we go down the track and that's going to be over the coming months. We're also in the process of hooking up our assets in Boston and DC and San Francisco. So we'll get a bit of benefit also there in 2025. We've been growing transit very nicely this year. It was good for Matt to be able to talk about the MTA in terms of the whole sort of being net cash positive as we go forward. Speaker 200:21:17So that's a great milestone for the business. And we are excited, I think, by the growth opportunity that the transit business will give us as we go through 2025. Speaker 300:21:32Got it. Thank you. And then just Speaker 500:21:34secondly, are you able to size the political ad spend and impact, maybe how that had trended over 4Q? Thanks. Speaker 300:21:46I can take that. For the year in 2024, we got about $15,000,000 of political. I can compare that to 2020 when we had about $10,000,000 So a little more effort, a little more involvement of our government affairs team, I think led to being increased. About half of that amount is in the Q4, obviously, primarily October. Operator00:22:18Our next question comes from Lance Vitanza with T. C. Cowen. Please go ahead. Speaker 600:22:23Thanks for taking the question. I wonder if you could talk in a little bit more detail about the increased spend at corporate. And I'm just trying to get a sense for how much of that can we think of as being one time or non recurring? And the higher professional fees, was that just for the Canada sale? That's easily dismissed if that's the case. Speaker 600:22:48But the management consulting project and higher comp sound a little bit more nebulous and or recurring. And then particularly, I'm not clear on exactly what happened with the benefit plan, I think you mentioned that is unfunded, but yet required some incremental expense as well. So appreciate your help there. Speaker 300:23:13Sure. It's Matt again. I'll break it down. The benefit plan is an unfunded deferred comp plan, I think tied to the S and P 500 or another equity index. So basically when stock markets go up in a quarter, it's a higher expense. Speaker 300:23:33When they go down, it's a good guy. So there's almost all in the line item is relatively small, so it sticks out. So there's always going to be some volatility from that. And we just try to make people aware up or down or order of magnitude. The professional fees in corporate is a nationally recognized management consulting firm we've been working with most of the year, helping us really look at our assets and generating more revenue and more OIBDA off the assets that we have. Speaker 300:24:11We think the investment this year will add some benefit this year, but a lot more in the future. So we're learning some new techniques and improving our already strong performance around our markets. I think those are the 2 big ones we called out. Comp in 2024, it's mostly we were a little bit off last year and our numbers were accruing closer. As we mentioned, we're at the high end of our AFFO guide. Speaker 300:24:43I think we're accruing closer to 100% of our short term compensation plans versus last year, we were a little bit under our 100% targets. Hopefully that's helpful. Speaker 600:24:57Very helpful. And if I could just squeeze in one more. I was actually, if anything, it seems like national came in a little bit better than I would have than I might have thought. And I'm wondering if you're seeing that continue in the Q4, or is that sort of was it a kind of a flash in the pan and maybe we see softer performance going forward? Speaker 200:25:17Yes, National thanks, Lars. National was certainly better in Q3 than we've seen for the 1st 2 quarters. And as we look at it now, we'd expect National to be up in Q4. Speaker 600:25:37Thanks very much. Operator00:25:40Our next question today comes from Ian Vazino with Oppenheimer. Your line is open. Speaker 700:25:46Hi, great. Can you guys maybe give us an idea of what conversions look like for the remainder of the year and how you're thinking about it into 2025? Speaker 300:25:58Thanks. Sure, Ian. I think we'll get our conversions. We usually target a little higher number. Probably digital is about $100,000,000 to $150,000,000 maybe on the low end of that. Speaker 300:26:10Fewer acquisitions this year, fewer management agreements and around the same number of conversions. So we'll be adding fewer digital this year, I think the number in 25, I'm not prepared to give a precise guidance range, but we're pretty confident it's going to be higher in 2025 than 2024. Speaker 800:26:30Okay. Thanks. And then also if Speaker 700:26:31I could sneak in one more on the MTA and I don't know if you could per se answer this, but as far as the rates going up, I guess ridership is still kind of well below where it was pre COVID. Is it again are you seeing either advertisers returning or kind of what's driving that rate just given that a lot of the ridership is just sort of stalled? And any kind of view on what ridership might be doing going forward? I guess a lot of companies are kind of calling people back 5 days a week, but any thoughts there would be helpful. Thanks. Speaker 200:27:10Yes. Thanks, Ian. I mean, we said right the way along that we anticipated we'd be able to get our revenues back up to pre COVID levels without the audience growing back to or ridership growing to pre COVID levels. And that's basically because we just have a much better product. We've undertaken this sort of huge digitization program. Speaker 200:27:37So now you can be more timely, you can be more creative. And it's just a very exciting product. And I think that's really what's drawing advertisers back. And as we look at it, I think we really feel very positive from the question that we had earlier with regards to automated revenues that will keep driving a pretty solid digital growth story on our transit assets and particularly on the MTA. Speaker 700:28:14Okay. Thank you very much. Operator00:28:18Our next question comes from Daniel Osterly with Wells Fargo. Please go ahead. Speaker 900:28:25Thank you. Good morning. Maybe just one on national. You've talked in the past about the headwind from the media and entertainment vertical. So just wondering how that vertical specifically has trended early in Q4? Speaker 900:28:37And do you expect the strong film slate later in the quarter to give you a further boost? Thank you. Speaker 200:28:45Yes. Thanks for the question. I think it's fair to say that this year, we did expect that the media and systemic category would sort of bounce back more strongly than we saw. It certainly seems to have taken, I mean, not just for us, but I mean for the industry as a whole, longer I think to get over the impacts of both strikes last year. Where we stand right now, I think we feel okay about the movie category as we look into the Q4. Speaker 200:29:24And there are other areas of entertainment that are doing well us and well for us miscellaneous entertainment looks like it's going to be up for us in Q4. And I'm pleased to say also that it looks like tech is going to Speaker 700:29:39be up. Speaker 200:29:39So listen, we have a basket of advertisers and the great thing about our portfolio is that if you're seeing a little bit of weakness in one place, you're typically making up for it with some strength in some of the other verticals. I think as we look into 2025, I think that we feel much better as we look at some of the tentpole films that are coming through in 2025. So, I guess we'll get the comp benefit then. Speaker 900:30:12Thank you. Operator00:30:16Thank you. And our next question comes from Patrick Scholl with Barrington Research. Your line is open. Speaker 800:30:23Hi, good morning. Thank you. I just had another question about the MTA. To the extent that you do get some recovery in ridership, I guess, is there any sort of concern you have in like the baskets of out of home spending for advertisers and that may be being reallocated from kind of the billboard side to the transit side? Speaker 200:30:50Typically, when you look at, while we do have a good crossover, I mean, between people that uses on the billboard side of the business and the transit business, we also have some very specific, very specific advertisers in transit who are buying transit from different reasons. The commuting audience on Metro North is not necessarily the same audience as you get on the Cross Bronx Expressway. So that I think has always been the case. We have sort of very high end audiences, say in various parts of the MTA system. And I think most commentators believe that ridership continues to creep up in cities. Speaker 200:31:41I think we do. But what we're kind of doing just fine without it, because whichever way you look at it, 4,000,000 sets of eyeballs every single day or more than that is a huge, huge audience for advertisers. And I think people are just beginning to re appreciate that. Speaker 800:32:04Okay. And then maybe on the automated buying side, I guess you said that that's helped bring in new advertisers. What sort of impact does that have on pricing? Speaker 200:32:22So when we look at the pricing that we achieve on a CPM basis through our programmatic channels, they're about $1 higher than the CPMs that we achieved through our direct sales force. So in general, do you know what I mean? Programmatic is a very sort of positive part of our business right now. Not all of the dollars that we get on programmatic are necessarily absolutely new. Some of them might have come through a different channel. Speaker 200:32:59So they may so I should make that point. But also, I mean, we take getting revenues from a bunch of advertisers that frankly we never would have expected or and in some cases haven't even heard of. So, it really is extending the number of different advertisers on a weekly basis on our digital platforms. Speaker 800:33:23Okay. Thank you. Operator00:33:28Thank you. We have no further questions. So I'd like to turn the call back to Jeremy now for any closing comments. Speaker 200:33:37Thanks, Lydia, and thanks to everyone for joining us today. I'm sure I'll be seeing many of you at the various conferences and events this winter, but for those that I don't, looking forward to presenting our full year results to you in February. Thank you very much indeed.Read morePowered by Key Takeaways Outfront’s U.S. Media segment drove over 5% revenue growth in Q3, with adjusted OIBDA up 11% and consolidated AFFO rising 7% to $81 million despite a tough prior-year comparison. Billboard revenues increased 4.8% (led by New Jersey, Texas and Michigan) and transit revenues grew 7.3% (anchored by the New York MTA), with local sales up 7% and national up just over 3%. Digital revenues jumped 10%, now representing 32% of U.S. Media revenue, with digital billboard up 11%, transit digital up 8% and automated channels comprising 17% of total digital sales. No impairment charge was recorded on the New York MTA deployment as the network now expects net positive cash flows through the amended contract term and has substantially completed its digital installations. For Q4, Outfront projects ~3% U.S. Media revenue growth (low-single-digit billboard and high-single-digit transit), will pay a $0.75 per share special dividend (split $0.30 cash/$0.45 stock) and maintain net leverage at around 5.0x. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallOUTFRONT Media Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) OUTFRONT Media Earnings HeadlinesOUTFRONT & GLAAD Celebrate Pride Month 2025 with "One Story. One Future." CampaignJune 2 at 5:16 PM | finance.yahoo.comOUTFRONT Media (NYSE:OUT) Upgraded by Citigroup to Strong-Buy RatingJune 1 at 1:33 AM | americanbankingnews.comTrump’s treachery Trump’s Final Reset Inside the shocking plot to re-engineer America’s financial system…and why you need to move your money now.June 2, 2025 | Porter & Company (Ad)OUTFRONT Media (NYSE:OUT) & Diversified Healthcare Trust (NASDAQ:DHC) Financial ContrastMay 31 at 2:07 AM | americanbankingnews.comOutfront Media: High Yield, Low Valuation Make The Perfect SetupMay 27, 2025 | seekingalpha.comOUTFRONT Media Inc. (NYSE:OUT) Receives $17.97 Consensus Target Price from AnalystsMay 23, 2025 | americanbankingnews.comSee More OUTFRONT Media Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like OUTFRONT Media? Sign up for Earnings360's daily newsletter to receive timely earnings updates on OUTFRONT Media and other key companies, straight to your email. Email Address About OUTFRONT MediaOUTFRONT Media (NYSE:OUT), Inc. leases advertising space on out-of-home advertising structures and sites. Its inventory consists of billboard displays, which are primarily located on the most heavily traveled highways & roadways, and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the U.S. and Canada. It operates through the U.S. Media and other segments. The U.S. Media segment includes U.S. Billboard and Transit. The company was founded in 1938 and is headquartered in New York, NY.View OUTFRONT Media ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Ulta’s Beautiful Q1 Earnings Report Points to More Gains Aheade.l.f. 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There are 10 speakers on the call. Operator00:00:00Hello, everyone, and welcome to Outfront Media's Third Quarter 2024 Earnings Call. My name is Lydia, and I'll be your operator today. After the prepared remarks, there'll be an opportunity for you to ask questions. Operator00:00:17I'll now hand you over to Stefan Bisson, Vice President of Investor Relations to begin. Please go ahead. Speaker 100:00:24Good morning, and thank you for joining our 2024 Q3 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 has concluded, a replay will be available there as well. Speaker 100:00:56This 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 ks and our September 30, 2024 Form 10 Q, which will be filed later today. We will refer to certain non GAAP financial measures on this call. Any references to OIBDA made 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 with prior period reconciliations. Speaker 100:01:37Also, please note that given the June sale of our Canadian business, our consolidated Q3 results do not include any Canada results compared to the comparable prior year period. Detailed historical financial results of the divested Canadian business can be found on Slide 25 of our slide presentation and detailed historical U. S. Media financial results can be found on Slide 24. Given the sale of our Canadian business, our remarks today will focus primarily on the results of our U. Speaker 100:02:02S. Media segment. Let me now turn the call over to Gerard. Speaker 200:02:09Thank you, Stefan, and thanks to everyone for joining us on our call this morning. It's a pleasure to report our Q3 results today, our first period as a fully domestic company. As Stefan just mentioned and similar to last quarter, our remarks today will focus almost entirely on our U. S. Media segment. Speaker 200:02:31As you can see on Slide 3, which summarizes our headline results, our U. S. Business grew revenues over 5%, driven by an acceleration in our billboard growth and high single digit growth in transit. U. S. Speaker 200:02:47Media adjusted OIBDA grew just over 11% driven by the revenue growth I just described combined with U. S. Media expense growth of just 3%. Together, U. S. Speaker 200:02:59Media and Corporate adjusted OIBDA was up 6%. Consolidated AFFO grew nearly 7% to $81,000,000 and puts us well on our way to achieving the high end of the growth target we laid out earlier this year. Our AFFO growth is impressive given that we are comparing against the seasonally strong quarter from last year that included our since divested Canadian business. On Slide 4, you can see our U. S. Speaker 200:03:34Media revenues in more detail. Billboard revenues were up 4.8%. Our strongest markets continue to be those that are more locally skewed such as those in New Jersey, Texas and Michigan. Every region was up except the West, which improved sequentially, but remained flattish due to some weakness in Los Angeles. Transit revenue was up 7.3% versus the prior year, driven by growth in all markets, including the New York MTA. Speaker 200:04:06As has been the case all year, our improved transit revenues was a result of solid performances from both our local and national teams. The breakdown of local and national revenues in our U. S. Media business can be seen on Slide 5. Local remains the primary driver of our growth, up almost 7%. Speaker 200:04:29National revenues improved from Q2 levels and were up a little over 3%. On a consolidated basis, our best performing categories in the Q3 were retail, tech, utilities, telecom, legal and government political. On the weaker side were also health medical, alcohol and education. Slide 6 illustrates our solid U. S. Speaker 200:04:59Media billboard yield growth, up almost 7% year over year, reaching just under $3,000 The drivers of this yield growth remain our digital conversions, rates, occupancy and higher automated transaction revenue. Slide 7 highlights our strong U. S. Media Digital performance with revenue growing 10% in the quarter, representing over 32% of our total revenues, up from 31% last year. U. Speaker 200:05:34S. Digital billboard was up over 11%, while transit was up just over 8%, again driven predominantly by the MTA. Automated revenues comprised nearly 17% of our total digital revenues in the quarter. About 7% of our digital transit revenue came from automated channels, up from just under 2% last year, reinforcing our belief that the MTA's digital network is well aligned for automated selling. With that, let me now hand it over to Mats to review the rest of the financials. Speaker 300:06:12Thanks, Jeremy, and good morning, everyone. As for Jeremy's remarks, most of my comments will focus on our U. S. 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 U. Speaker 300:06:28S. Media expenses. Total U. S. Media expenses were up just under $10,000,000 or just over 3% year over year. Speaker 300:06:37U. S. Mill media billboard lease expense was up 1% versus last year. Small increases on a portion of our inventory on fixed rates were partially offset by lower revenues on the portion of our inventory operated on leases with revenue share arrangements primarily located in New York and Los Angeles. U. Speaker 300:06:57S. Media transit franchise expense was up 2% versus the prior year, principally due to higher mag payments to the MTA and higher revenues on contracts operated under revenue shares, partially offset by the non renewal of a loss making contract and small benefits from amendments to existing transit agreements. U. S. Media posting, maintenance and other expenses were up about 10% versus the prior year, primarily due to higher compensation related expenses and an increase in business activity driving higher posting and rotation costs. Speaker 300:07:32U. S. Media SG and A expense grew less than 3% or just over $2,000,000 during the quarter due to higher compensation related expenses, partially offset by lower professional fees and smaller provision for doubtful accounts. Slide 9 provides additional detail on the sources of U. S. Speaker 300:07:51Media OIBDA. Total U. S. Media OIBDA was up 11% to just over $133,000,000 U. S. Speaker 300:07:59Billboard OIBDA was up 8% to $136,000,000 which represents a margin of 37.8 percent, up 110 basis points year over year. Transit OIBDA improved by about $3,000,000 to a loss of just under $3,000,000 improvement was primarily due to the better revenues Jeremy described earlier in the call. On Slide 10, you can see our combined U. S. Media and corporate OIBDA, which was up about 6% to approximately $117,000,000 Q3 corporate expense was up $6,700,000 The majority was due to consulting fees and the impact of market fluctuations on an unfunded equity linked retirement plan. Speaker 300:08:43Turning to capital expenditures on Slide 11, Q3 U. S. Media CapEx spend was $17,600,000 including $5,500,000 of maintenance spend. Growth CapEx was up slightly while maintenance CapEx was down about $2,000,000 For the full year, we believe we will spend approximately $85,000,000 of total CapEx towards the higher end of our prior range including some spend to complete repairs related to Hurricane Milton. We ended the quarter with a little more than 1900 digital billboards, up 17% from the end of the second quarter and representing under 5% of our total billboard inventory. Speaker 300:09:24In transit, we added nearly 1400 digital displays in the U. S. In the Q3. As has been the case thus far this year, the installations were mostly small format screens on subway and train cars in the New York MTA and we are happy to confirm that we have substantially completed our initial deployment commitments. While speaking of the New York MTA, hopefully you noticed that we did not have an impairment charge this quarter as we currently expect net positive cash flows through the end of the amended term of the MTA agreements. Speaker 300:09:56As such, we would not expect to incur additional impairment charges going forward on our MTA equipment deployment cost spending. Now turning to consolidated AFFO on Slide 12, you can see the bridge on our Q3 AFFO of nearly $81,000,000 The $5,000,000 year over year increase was due to higher U. S. Media OIBDA, lower interest expense, lower U. S. Speaker 300:10:20Media maintenance CapEx and lower other maintenance CapEx, partially offset by lower other OIBDA, principally related to the Canada sale and corporate expense. For 2024, we expect that reported consolidated AFFO will be between $295,000,000 $300,000,000 Please turn to Slide 13 for an update on our balance sheet. Committed liquidity is over $600,000,000 including around $30,000,000 of cash, almost $500,000,000 available via revolver and $110,000,000 available under our accounts receivable securitization facility. As of September 30, our total net leverage was 5.0 times, down from 5.4 times year end of 2023. We expect to continue to delever within our 4 to 5 times target range through adjusted OIBDA growth. Speaker 300:11:18Turning to our dividend, we announced today that our Board of Directors approved a $0.75 per share special dividend totaling about $125,000,000 payable on December 31 to shareholders of record at the close of the business on November 15. About $50,000,000 or $0.30 per share will be paid in cash, the same per share amount as the 3 common dividends paid earlier this year and the remaining $0.45 per share or about $75,000,000 we paid in shares of our common stock. Stockholders will have the option to elect to receive a special dividend in all cash or all stock. However, if the aggregate amount of stockholder cash elections exceeds the $49,800,000 cash limit, then the payments of such cash elections will be made on a pro rata basis to shareholders who made the cash election with the balance paid in shares of common stock. Please refer to our SEC filings for further information on the special dividend election process. Speaker 300:12:21The special dividend represents the projected excess remaining balance of 100 percent of the company's 2024 distributable REIT income beyond the cash dividends paid earlier this year and has been sized to maximize the tax savings afforded to us by the REIT structure as well as retain the deleveraging effect of the Canada sale completed in June. To offset the small dilutive impact of the common stock portion of the special dividend, our Board of Directors also approved a reverse stock split to return our aggregate share count to pre stock dividend levels, which we expect to complete in January 2025. There were no large or notable acquisitions made during the quarter. Looking at our current acquisition pipeline, we expect to complete about a total of $25,000,000 of acquisitions this year. Before I pass the call back to Jeremy, I'll take a moment to explain some accounting revisions in our documents. Speaker 300:13:18In connection with finalizing our results for the Q3, we identified an error related to the treatment of non controlling interest on our balance sheet involving a few of our historical consolidated joint ventures. As noted in our earnings release, we concluded that the error was not material to our previously issued financial statements, but would require revisions to our current and comparative periods with respect to certain equity line items on our balance sheet and our consolidated statements of equity. There is no impact on our total assets and liabilities, income statement, statement of cash flows or EBITDA or AFFO related to this matter. As an administrative matter, we also decided to voluntarily revise our previously issued financial information to reflect the immaterial out of period adjustment related to variable billboard property lease costs that was already recorded and disclosed in the Q1 of 2023. Please refer to our SEC filings for further information on the revisions. Speaker 300:14:18In closing, it was a good quarter and we look forward to running through the tape to the end of the year. With that, let me turn the call back to Jeremy. Speaker 200:14:30Thanks very much, Matt. So before we jump into revenue guidance for the Q4, I want to mention a couple of recent developments which will impact comparability for the prior year, particularly as it relates to our billboard business. 1st, as many of you may have seen last month, we recently exited a billboard contract with the New York MTA creating a revenue headwind for Q4. Importantly, and as implied by our full year AFFO guidance, we expect a de minimis impact to our OIBDA and AFFO this year. For 2025, it will continue to be a revenue headwind, but it will also be very much margin enhancing. Speaker 200:15:13Secondly, the storms in the southeast will also present a small headwind as we proactively removed advertising copy for safety reasons and it took some time to replace given some of the damage in the area. We're immensely proud of the team in the region who responded to storms in such a safe and expeditious manner. So with that said, looking ahead to the Q4 and based on what we're seeing in the business as of today, we estimate that reported Q4 U. S. Media revenue growth will be around 3% with billboard in the low single digits and transit again growing high single digits led by the New York MTA. Speaker 200:15:53Before turning it over to Q and A, I wanted to speak a little bit more about the billboard contract in New York that we exited as it's illustrative of our broader strategy with regards how we approach contracts and partnerships with any counterparty, municipal or private or any property type, both billboard and transit. This particular contract exit reflects our focus on improving margins and the economic returns associated with these partnerships. When bidding on new or legacy contracts, particularly those with revenue shares and minimum annual guarantees, we strive to submit proposal that reflect the value brought to such a partnership by UPFRONT, requiring an attractive return to the company and its shareholders. So with that, operator, let's now open the line up for any questions. Operator00:16:51Thank you, Jeremy. Our first question today comes from David Karnovsky with JPMorgan. Please go ahead. Your line is open. Speaker 400:17:07Hey, thank you. Troy, maybe just following up on the Q4 guide. I don't know if you can size the impact of the MTA versus the storms you called out in the Southeast? And then I think the company that has won the MTA contract or bids for the MTA contract had flagged some strategic benefit. As a result of that, is there kind of was there any consideration on that front from your side? Speaker 400:17:34Just like to hear more on that. Speaker 200:17:38Yes. Thanks, Dave, for the question. So as to sort of scale, around about a point 5 of growth in that sort of range. And as I say, then there's a small piece for the storms that we mentioned. Look, with regards to strategic benefit, every company has to make their own decision when they bid these contracts. Speaker 200:18:04I wouldn't want to comment on our competitors' bidding strategy. But what I can say is that from our point of view, as the contract we bid it on the basis that would work for us and that's kind of all you can say in these situations. Speaker 400:18:27Okay. And then just on the property lease expense down, we would have thought maybe this would have firmed up a bit with a better result in national. So I'm curious if you could walk through national by market, what you're seeing in places like LA and New York relative to the other regions. And you mentioned the West flattish. I don't know if you can kind of walk through that and what you're seeing with the media vertical. Speaker 400:18:45Thanks. Speaker 300:18:49Yes. Speaker 200:18:51Sorry, Matt, you go. Speaker 300:18:54I'm sorry, it's Matt. As Jeremy mentioned in his prepared remarks, we're still seeing a little bit of weakness in L. A. And a little bit in New York. National is not back to where we'd like it. Speaker 300:19:08Still stronger right now in transit. So our billboard lease expense not up as much as we've said in past years. It's flipped around when New York and L. A. Overperformed or overperformed their peers. Speaker 300:19:24You see a little higher lease expense. We're seeing the opposite throughout most of this year. Speaker 400:19:34Thank you. Operator00:19:38Our next question comes from Cameron McVeigh with Morgan Stanley. Please go ahead. Speaker 500:19:46Hi, thanks. Just maybe an update on the NTA integration of some of the programmatic ad tech capabilities down there, how that's how the timing is shaping up and potential impact to transit results going forward? Speaker 200:20:05Thanks for the question, Cameron. You had to call out there that 7% of the revenue generated in Q3 on the MTA came through automated channels. Basically, we've now hooked up our live boards, which are the all of the screens that you see on platforms. We've also hooked up the urban panels that are the panels that you see above the subway entrances. What we haven't yet done is hook up on the mobile panels, which are on train on the subway and also Metro North and Long Island Railroads. Speaker 200:20:45So we'll get that benefit as we go down the track and that's going to be over the coming months. We're also in the process of hooking up our assets in Boston and DC and San Francisco. So we'll get a bit of benefit also there in 2025. We've been growing transit very nicely this year. It was good for Matt to be able to talk about the MTA in terms of the whole sort of being net cash positive as we go forward. Speaker 200:21:17So that's a great milestone for the business. And we are excited, I think, by the growth opportunity that the transit business will give us as we go through 2025. Speaker 300:21:32Got it. Thank you. And then just Speaker 500:21:34secondly, are you able to size the political ad spend and impact, maybe how that had trended over 4Q? Thanks. Speaker 300:21:46I can take that. For the year in 2024, we got about $15,000,000 of political. I can compare that to 2020 when we had about $10,000,000 So a little more effort, a little more involvement of our government affairs team, I think led to being increased. About half of that amount is in the Q4, obviously, primarily October. Operator00:22:18Our next question comes from Lance Vitanza with T. C. Cowen. Please go ahead. Speaker 600:22:23Thanks for taking the question. I wonder if you could talk in a little bit more detail about the increased spend at corporate. And I'm just trying to get a sense for how much of that can we think of as being one time or non recurring? And the higher professional fees, was that just for the Canada sale? That's easily dismissed if that's the case. Speaker 600:22:48But the management consulting project and higher comp sound a little bit more nebulous and or recurring. And then particularly, I'm not clear on exactly what happened with the benefit plan, I think you mentioned that is unfunded, but yet required some incremental expense as well. So appreciate your help there. Speaker 300:23:13Sure. It's Matt again. I'll break it down. The benefit plan is an unfunded deferred comp plan, I think tied to the S and P 500 or another equity index. So basically when stock markets go up in a quarter, it's a higher expense. Speaker 300:23:33When they go down, it's a good guy. So there's almost all in the line item is relatively small, so it sticks out. So there's always going to be some volatility from that. And we just try to make people aware up or down or order of magnitude. The professional fees in corporate is a nationally recognized management consulting firm we've been working with most of the year, helping us really look at our assets and generating more revenue and more OIBDA off the assets that we have. Speaker 300:24:11We think the investment this year will add some benefit this year, but a lot more in the future. So we're learning some new techniques and improving our already strong performance around our markets. I think those are the 2 big ones we called out. Comp in 2024, it's mostly we were a little bit off last year and our numbers were accruing closer. As we mentioned, we're at the high end of our AFFO guide. Speaker 300:24:43I think we're accruing closer to 100% of our short term compensation plans versus last year, we were a little bit under our 100% targets. Hopefully that's helpful. Speaker 600:24:57Very helpful. And if I could just squeeze in one more. I was actually, if anything, it seems like national came in a little bit better than I would have than I might have thought. And I'm wondering if you're seeing that continue in the Q4, or is that sort of was it a kind of a flash in the pan and maybe we see softer performance going forward? Speaker 200:25:17Yes, National thanks, Lars. National was certainly better in Q3 than we've seen for the 1st 2 quarters. And as we look at it now, we'd expect National to be up in Q4. Speaker 600:25:37Thanks very much. Operator00:25:40Our next question today comes from Ian Vazino with Oppenheimer. Your line is open. Speaker 700:25:46Hi, great. Can you guys maybe give us an idea of what conversions look like for the remainder of the year and how you're thinking about it into 2025? Speaker 300:25:58Thanks. Sure, Ian. I think we'll get our conversions. We usually target a little higher number. Probably digital is about $100,000,000 to $150,000,000 maybe on the low end of that. Speaker 300:26:10Fewer acquisitions this year, fewer management agreements and around the same number of conversions. So we'll be adding fewer digital this year, I think the number in 25, I'm not prepared to give a precise guidance range, but we're pretty confident it's going to be higher in 2025 than 2024. Speaker 800:26:30Okay. Thanks. And then also if Speaker 700:26:31I could sneak in one more on the MTA and I don't know if you could per se answer this, but as far as the rates going up, I guess ridership is still kind of well below where it was pre COVID. Is it again are you seeing either advertisers returning or kind of what's driving that rate just given that a lot of the ridership is just sort of stalled? And any kind of view on what ridership might be doing going forward? I guess a lot of companies are kind of calling people back 5 days a week, but any thoughts there would be helpful. Thanks. Speaker 200:27:10Yes. Thanks, Ian. I mean, we said right the way along that we anticipated we'd be able to get our revenues back up to pre COVID levels without the audience growing back to or ridership growing to pre COVID levels. And that's basically because we just have a much better product. We've undertaken this sort of huge digitization program. Speaker 200:27:37So now you can be more timely, you can be more creative. And it's just a very exciting product. And I think that's really what's drawing advertisers back. And as we look at it, I think we really feel very positive from the question that we had earlier with regards to automated revenues that will keep driving a pretty solid digital growth story on our transit assets and particularly on the MTA. Speaker 700:28:14Okay. Thank you very much. Operator00:28:18Our next question comes from Daniel Osterly with Wells Fargo. Please go ahead. Speaker 900:28:25Thank you. Good morning. Maybe just one on national. You've talked in the past about the headwind from the media and entertainment vertical. So just wondering how that vertical specifically has trended early in Q4? Speaker 900:28:37And do you expect the strong film slate later in the quarter to give you a further boost? Thank you. Speaker 200:28:45Yes. Thanks for the question. I think it's fair to say that this year, we did expect that the media and systemic category would sort of bounce back more strongly than we saw. It certainly seems to have taken, I mean, not just for us, but I mean for the industry as a whole, longer I think to get over the impacts of both strikes last year. Where we stand right now, I think we feel okay about the movie category as we look into the Q4. Speaker 200:29:24And there are other areas of entertainment that are doing well us and well for us miscellaneous entertainment looks like it's going to be up for us in Q4. And I'm pleased to say also that it looks like tech is going to Speaker 700:29:39be up. Speaker 200:29:39So listen, we have a basket of advertisers and the great thing about our portfolio is that if you're seeing a little bit of weakness in one place, you're typically making up for it with some strength in some of the other verticals. I think as we look into 2025, I think that we feel much better as we look at some of the tentpole films that are coming through in 2025. So, I guess we'll get the comp benefit then. Speaker 900:30:12Thank you. Operator00:30:16Thank you. And our next question comes from Patrick Scholl with Barrington Research. Your line is open. Speaker 800:30:23Hi, good morning. Thank you. I just had another question about the MTA. To the extent that you do get some recovery in ridership, I guess, is there any sort of concern you have in like the baskets of out of home spending for advertisers and that may be being reallocated from kind of the billboard side to the transit side? Speaker 200:30:50Typically, when you look at, while we do have a good crossover, I mean, between people that uses on the billboard side of the business and the transit business, we also have some very specific, very specific advertisers in transit who are buying transit from different reasons. The commuting audience on Metro North is not necessarily the same audience as you get on the Cross Bronx Expressway. So that I think has always been the case. We have sort of very high end audiences, say in various parts of the MTA system. And I think most commentators believe that ridership continues to creep up in cities. Speaker 200:31:41I think we do. But what we're kind of doing just fine without it, because whichever way you look at it, 4,000,000 sets of eyeballs every single day or more than that is a huge, huge audience for advertisers. And I think people are just beginning to re appreciate that. Speaker 800:32:04Okay. And then maybe on the automated buying side, I guess you said that that's helped bring in new advertisers. What sort of impact does that have on pricing? Speaker 200:32:22So when we look at the pricing that we achieve on a CPM basis through our programmatic channels, they're about $1 higher than the CPMs that we achieved through our direct sales force. So in general, do you know what I mean? Programmatic is a very sort of positive part of our business right now. Not all of the dollars that we get on programmatic are necessarily absolutely new. Some of them might have come through a different channel. Speaker 200:32:59So they may so I should make that point. But also, I mean, we take getting revenues from a bunch of advertisers that frankly we never would have expected or and in some cases haven't even heard of. So, it really is extending the number of different advertisers on a weekly basis on our digital platforms. Speaker 800:33:23Okay. Thank you. Operator00:33:28Thank you. We have no further questions. So I'd like to turn the call back to Jeremy now for any closing comments. Speaker 200:33:37Thanks, Lydia, and thanks to everyone for joining us today. I'm sure I'll be seeing many of you at the various conferences and events this winter, but for those that I don't, looking forward to presenting our full year results to you in February. Thank you very much indeed.Read morePowered by