OUTFRONT Media Inc (NYSE:OUT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 04:30 pm ET


OUTFRONT Media Inc (NYSE:OUT) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, everyone. And welcome to the OUTFRONT Media, Inc. Third Quarter Earnings Conference Call. At this time, I would like to turn the call over to Greg Lundberg. Please go ahead.

Gregory Lundberg

Hi, good afternoon, everyone. Thanks for joining our 2019 third quarter earnings call. On the call today, as usual 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 will open up the lines for a question-and-answer session.

Our comments today will refer to the earnings release and the slide presentation that you can find in the Investor Relations section of our website, outfrontmedia.com. And after today's call has concluded, an audio archive will be there as well.

This conference 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 2018 Form 10-K. We will also refer to certain non-GAAP financial measures on this call.

Any references to OIBDA made today will be on an adjusted basis, and reconciliations of OIBDA and other non-GAAP financial measures are in the appendix of the slide presentation, the earnings release, and on our website. And with that, I'll turn it over to Jeremy.

Jeremy J. Male

Thank you, Greg. And thank you again for joining us today to review our third quarter results and guidance for the fourth quarter. Please turn to the highlights on slide 3.

Total revenues increased over 11% in the quarter, which was our fourth straight quarter of double-digit growth. In US media, we saw this double-digit performance in both local and national. We were delighted to see these twin sources of demand drive continued strong growth in both Billboard and Transit. This top-line strength helps drive OIBDA, up over 8%, and AFFO, up 7%.

So overall a very good quarter, and as I'll talk about later, we expect 2019 to be a double-digit revenue growth year, a noteworthy performance is being driven by digitization, sales execution and certainly the growing importance of out-of-home in advertisers' media mix.

Let's now turn to slide 4 to go into more color on our revenue growth. As you'd expect, the vast majority of our overall growth came from US Media, which was up 11%. Other revenues were up 15% on a reported basis, a point higher when removing the effects of foreign exchange. Let's look at each of these components in more detail, beginning first with US Media on slide 5.

Transit and Billboard contributed equally to our growth in the quarter. In Billboard, revenues grew 8% on both reported and organic basis. This is on top of the 6% growth in the third quarter of last year. Billboard saw a strong contribution from digital, and we're encouraged to also see static billboards performing well. Transit revenues were up 20% led by digital both in terms of dollar and percentage growth. While the majority of this growth