Clear Channel Outdoor Holdings Inc at Citi Global TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Bazinet - Citi - Analyst : So I'll start off with a high-level question.

Question: Jason Bazinet - Citi - Analyst : Okay. The strategic review. You've got some things behind you, some things that I think are sort of still (technical difficulty). And my question is, can you just sort of describe what you've done, what's still to come? And maybe give us a sense of when do you think all of it will be behind you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 12:20PM, CCO.N - Clear Channel Outdoor Holdings Inc at Citi Global TMT Conference

Question: Jason Bazinet - Citi - Analyst : Can you just pause on that. What do you remember off the top of your head, what your north did in the last quarter, it was up a significant amount?

Question: Jason Bazinet - Citi - Analyst : But which one is a stable one? Peru?

Question: Jason Bazinet - Citi - Analyst : So you went country by country? Okay.

Question: Jason Bazinet - Citi - Analyst : Okay. And just to level set for everyone, can you -- this decision to sort of exit Europe, exit Latin America, where you're going to become a US-focused asset, is that just purely focused on sort of the long-term goal to convert to a REIT? Is that sort of what is the underlying narrative or it's deeper than that?

Question: Jason Bazinet - Citi - Analyst : Okay. And so that's sort of -- and this is my own bias, and I ask you this every year, and I don't know why I'm so fixated on it. But I look at your enterprise value, and there's a lot of debt and less equity. And I'm like, how do we make this a real sort of --

Question: Jason Bazinet - Citi - Analyst : Yes, split it more evenly. And then I always go down the path of sell assets at a higher multiple than your leverage. And yeah, every year, you say, yes. And so please just remind us why that --?

Question: Jason Bazinet - Citi - Analyst : Okay.

Question: Jason Bazinet - Citi - Analyst : Okay. That's great. So part of that in terms of flipping it to free cash flow positive. I think the big standout in the second quarter other than Europe-North was airports. So what -- can you just sort of unpack the strength? I mean, I think revenue is up 21%, EBITDA up 17%. You raised your guidance for the outdoors -- airports segment by a little bit also for the full year. Can you just unpack it a bit for us? Like what's going so well?

Question: Jason Bazinet - Citi - Analyst : That cross-sell, is that technological thing that happened? Is it just incentives for the salespeople?

Question: Jason Bazinet - Citi - Analyst : Understood. So there's been some -- I don't know, small anecdotes out there in terms of commentary around travel, right? Like I think Airbnb had some difficult numbers. There's been some concern around destination theme parks. I think you noted on your call that the airport traffic was at record levels, right? But I know investors are nervous about travel moderating just based on what the other companies are saying. Should investors be nervous about what traffic counts mean in airports as it relates to your airport segment? Or is it more disconnected than a

Question: Jason Bazinet - Citi - Analyst : That's great. I'm going to shift gears and talk about this national local dichotomy that you touched on. I sort of -- when I speak to executives across the industry, right, there seem to be two camps. There is the -- we have a slight secular issue as it relates to national advertising for the outdoor ad medium. And then the other camp says, no, this is all -- you can trace it back to weakness in specific verticals, there's no signal here. And I think you land a little bit more in the former camp than the latter. Is that right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 12:20PM, CCO.N - Clear Channel Outdoor Holdings Inc at Citi Global TMT Conference

Question: Jason Bazinet - Citi - Analyst : When you say, spread like peanut butter, I think that was the phrase you used, you're not talking about spreading like peanut butter across the inventory that Clear Channel has. You're talking about spreading like peanut butter just across all?

Question: Jason Bazinet - Citi - Analyst : Really?

Question: Jason Bazinet - Citi - Analyst : Okay. And how -- just can you remind us how big programmatic is?

Question: Jason Bazinet - Citi - Analyst : Understood. Can we talk about other sort of sales efforts beyond programmatic? I think you've made some efforts to try and hire some salespeople to sort of zero in on particular verticals to be more effective at selling and sort of tacking this. Can you talk a little bit about what your hypothesis is? What you -- how you're sort of attacking it and any sort of success you've had so far?

Question: Jason Bazinet - Citi - Analyst : That's great. Dave, can I shift over to you for a second?

Question: Jason Bazinet - Citi - Analyst : I think during both the first quarter and the second quarter, you guys have articulated sort of a back half waiting towards the year. Can you just unpack that a bit and explain how much confidence you have in that, particularly given some of the macro fears that people have at the moment?

Question: Jason Bazinet - Citi - Analyst : Okay. That's great. Are there any questions in the audience for either Scott or Dave? I think we have got one in the front here? Unidentified Participant It was a line you said right at the beginning. You were saying that in Europe, you felt that the outdoor companies are doing a better job of taking some of those sort of traditional display, I think TV budgets. Whereas in the US, that money is being diverted to Connect TV and other platforms. Why is that? And is there anything you can do to change it in particular with the sort of digital offering?

Question: Jason Bazinet - Citi - Analyst : That's like that was the original retail media, I guess, doing a CPG ad outside of that?

Question: Jason Bazinet - Citi - Analyst : Okay. You touched on this earlier, Scott. But Dave, maybe you could just remind everyone in terms -- like when I look at your bond maturity schedule, it looks fantastic, fairly benign, like there's no real moving parts there. Is that a fair characterization?

Question: Jason Bazinet - Citi - Analyst : And can you remind me the term loan? Is it SOFR plus? Is that how it's called?

Question: Jason Bazinet - Citi - Analyst : Okay. Great. So that's a little bit of a tailwind. And hopefully, we'll be talking about free cash flow. All right. Very good. Scott, Dave, thank you so much for the time. It's been great.