Clear Channel Outdoor Holdings Inc Q3 2024 Earnings Call Transcript

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

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

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

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

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

Question: Avi Steiner - J.P. Morgan - Analyst : Appreciate it as always. Thank you very much. Everyone.

Question: Lance Vitanza - TD Cowan - Analyst : Hi guys. Thanks for taking the question. Sticking with the Europe North. I was surprised given the strength in revenues on the one hand, but costs obviously grew more quickly. And could you sort of break that down in terms of what in that cost side is recurring versus nonrecurring and, and really what it means for margins in Europe North going forward. You mentioned higher site lease expense and I'm wondering, you know, was that unfavourable renewals or were there perhaps some COVID abatements that rolled off and then related to that, you know, the impact of Norway, which you call out? But could you sort of put some numbers around that? Is it possible to talk about what the revenue and EBITDA growth would have been ex that Norway contract going away? Thanks.

Question: Lance Vitanza - TD Cowan - Analyst : Thanks so much.

Question: Aaron Watts - Deutsche Bank Securities - Analyst : Everyone. Thanks for having me on just two questions for me. You've indicated in the past that cancellations have been a precursor to downturns in your business. I think as of the last call, you hadn't seen any notable activity on that front. Is that still true today? And any early indications from your ad clients on commitments for early 2025. And then secondly, on the National business here in the US and turning the corner into 24th quarter and turning the corner into 2025. Are you feeling any headwinds from all the streaming ad inventory that has come online this year? Do you think that's part of the reason for sustained choppiness on national throughout the last 12 months and something you might expect to continue going forward?

Question: Aaron Watts - Deutsche Bank Securities - Analyst : Very helpful. Thanks, Scott.

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

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

Question: Patrick Sholl - Barrington Research Associates, Inc - Analyst : Yes, thank you.