OUTFRONT Media Inc.

Good day, everyone, and welcome to the second quarter 2022 earnings conference call. This call is being recorded. At this time, I'd like to turn the conference over to Stephen Beeson. Please go ahead, sir.

Good afternoon, and thank you for joining our 2022 second quarter earnings call. With me on the call today are Jeremy Mail, 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 line 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, outfrontmedia.com. After today's call is concluded, an audio archive will be available there as well. This 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 2021 Form 10-K and our June 30, 2022 Form 10-Q, which we expect to file tomorrow. 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. Let me now turn the call over to Jeremy.

Thanks Stefan, and thank you everyone for joining us today. We're pleased to be here sharing our second quarter results, which illustrate that the strength observed in our business during Q1 has continued nicely through Q2. Advertiser demand has remained strong, pushing billboard yields to a Q2 record and driving a continuing recovery in transit as riders return to the rails and buses that allow cities to function and flourish. Turning to the headline numbers on slide three, you'll see that total consolidated revenue grew 32%, including our acquisition in Portland, and 31.6% on an organic basis when excluding these acquired assets, right in line with the expectation we provided back in early May. Our strong revenue growth led to around 55 million year-over-year improvement in both OIBDA and AFFO during the quarter, which grew to 125 million and 93 million respectively. On slide four, you'll see that U.S. media was up 31% year over year. Other, which consists mostly of Canada, was up 44% versus the prior year as our business continued its strong recovery from pandemic restrictions and great execution from our Canadian team. On slide five, You can see a more detailed look at our US media revenues. Billboard grew 22% year over year, with strong performances in all regions. Nearly every category in Billboard was up year over year, with significant strength coming from travel, which was up 72%, retail up 40%, entertainment up 36%, and technology also up 36%. Transit revenue was up 81% versus the prior year, continuing its recovery. Though this business continues to face some headwinds from lower ridership compared to pre-pandemic, there are encouraging trends to note. Again, ridership recovery as measured versus 2019 improved sequentially in Q2 for all our major transit franchises and also transit revenue is recovering more quickly than ridership when both are compared to pre-pandemic activity. Turning to slide six, we can see the breakdown of local and national revenues in our U.S. business. While both parts of the business continue to be extremely healthy, national growth outpaced local again this quarter, up 37% year over year compared to local's 28%. National accounted for 42% of revenue during the quarter, moving us closer to our historic run rate of 45% national and 55% local. Slide seven illustrates our impressive U.S. billboard yield growth, which grew 23% year over year to just over $2,700. This was primarily driven by rate increases highlighting strong demand and again, great execution by our teams. Slide eight highlights our strong digital performance with revenue growing 63% in the quarter and representing 29% of total revenue up from 24% last year. Our growth continues to be driven by high yield yields and of course, increased inventory. In addition, programmatic and incremental late bookings continue to lift our digital revenues. As you can see, Billboard Digital grew 45% and Transit Digital grew an impressive 171% to $32 million. Our digital transit revenue growth continues to be led by the New York MTA, where we've now completed the installation of over 9,000 digital advertising displays since renewing our contract in 2017. We are encouraged by the potential of these assets, many of which display full-motion video ads, a capability highly valued by advertisers. Let me now hand over to Matt to review the rest of our financials.