Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| But if we look over time, we think it's certainly going to be positive to the global business |
| We also expect that we and in fact, the entire out-of-home industry will benefit from the crowd out effects of the Olympics and the 2024 election as well as the return of a Prime Time TV season in the second half |
| While we are pleased with our billboard revenue performance and what ultimately proved to be a rather challenging 2023, we're happy to turn the page to 2024, which we expect will be a significantly improved year |
| So we think that's just a bit of amounts that will be very positive for us |
| Look, it feels very broad-based, and it's nice to see that acceleration from the growth rate that we had achieved in the back half of last year with some of the challenges that we've already talked about |
| So that's good to see strength |
| We see numerous tailwinds for our company in 2024, including the continued ramping of our acquired inventory and additional recovery in our transit business |
| Also contributing significantly to our billboard growth was the continued impressive performance of our automated sales platform, including programmatic |
| Slide 8 highlights our strong digital performance with revenue growing 9% in the quarter total revenue representing nearly 36% of total digital revenues, up to 33% last year |
| And as time goes on, as we said before, we believe that digitally in general, will be margin and enhancing for our billboard business |
| Further, as I just mentioned and implied by our full year AFFO guidance, we are encouraged by the early signs we are seeing for the remainder of the year |
| So generally, we feel positive on that |
| Billboard revenues were up 3% with growth in all 4 of our regions, but stronger performances in the East and South, and I'm pleased to call out our New York Huston Dallas, Orlando, Kansas City and national teams as these markets displayed extemporary growth leading our billboard geographies |
| As has been the case for the last couple of years, this growth was predominantly driven by higher rates resulting from robust demand for billboard advertising and our expanding digital revenue |
| And that's an exciting trend our automated revenues to be 16% in the final quarter the size of the digital business |
| billboard yield growth up around 3% year-over-year and shopping 3,000 a month for the first time |
| Automotive Digital billboard was up a robust 10.6%, again, fueled by our automated sales channels and new inventory, while transit was up 4.5% |
| So that's a positive sign |
| We'll be starting off on the right foot in the first quarter as based on our trends of today, we estimate the reported Q1 total revenue growth will accelerate to the low to mid-single-digit range with billboard and transit growing at similar rates |
| Consolidated revenues grew 1.3% towards the higher end of the guidance we provided in November, while OIBDA was $152 million and AFFO was $108 million |
| But in percentage of revenue terms, the transit business was most impacted, and that's because transit is more disposed towards national and within transit it's been certainly been somewhere where the all TV schedules have typically been very, very successful for us and our clients |
| 2024, we currently expect reported consolidated AFFO growth in the high single-digit range with 2023 to AFFO of $271 million, driven principally by improvement in OIBDA |
| So net-net, we're still very confident in the investments that we're making in our business to further digitize |
| So we -- obviously, Texas has been strong as a state, Florida generally is good |
| The same media coming back will undoubtedly be positive |
| And while [indiscernible] doesn't make a summer, it's good to see that our tech revenue is actually pacing a bit ahead in Q1 |
| Slide 7 shows our solid U.S |
| This event truly showcased the evolutionary potential of the out of home industry |
| And we said that both parts of the business, we're going to be up, which is a great side |
| Matthew Siegel Why I'm moving forward to '24 main breaks them down transit, we expect some improvement in our transit business and given our fixed franchises in New York or underneath their middle guarantees |
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| The only markets that so difficult for us really in particular, with some of the West Coast markets, and we talked about San Francisco being difficult for us last year |
| Transit revenue was down 4% versus the prior year |
| The entire decline in the quarter was due to weaker tech, financial and entertainment |
| On billboard we had, again, acquisitions in mid-'22 and early '23, which is kind of a bit of a drag in '23 on billboard margins, just the higher lease costs outstripping revenue growth |
| But I say last year, actually, there were a bunch of headwinds and those digital revenue is still lows to grow significantly |
| It's interesting the other category that was difficult for us last year not only difficult for us |
| The decrease was primarily due to lower revenues as Jeremy described earlier |
| On the weaker side were technology, government political, financial services and, of course, entertainment |
| Of course, interest rates low, too |
| Local grew 4.5% during the quarter, while national, which was more heavily impacted by the weaker tech and entertainment verticals I noted earlier, declined by 3% |
| In particular, what does the cadence of growth look like given the comps we faced last year? And should that have a greater impact on billboard or transit? Jeremy Male So when you look at it, it certainly it impacted that business really quite more than others termite the industry just because our exposure to media revenues, in particular, given that prominent positions in both New York and Los Angeles |
| billboard OIBDA margin was 39.5%, down versus a year ago but up again versus 2019 |
| I mean, difficult for just about every at holding company, I think that's reported so far |
| Richard Choe And -- given that, do you see that there's been a change in your customers in wanting to do more out of home at this point and they feel more comfortable with the environment versus last year where there's a lot of uncertainty? Jeremy Male So on the face of it, yes, I mean, last year, actually, there was all about really 2 or 3 categories that really didn't do show up |
| One of the big factors last year that we started seeing just the late money that we were able to take as a company that we wouldn't have been able to take in years before |
| Billboard lease expense decreased 9% year-over-year in Q4 |
| So when we look into it, reasonably significant impact in dollar terms in our billboard business, particularly in LA |
| Posting, maintenance and other expenses was down 2% versus the prior year with these features related to higher business activity were offset by reduced maintenance and utilities expenses |
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