OUTFRONT Media Inc.

Hello, everyone, and welcome to the Outfront Media First Quarter 2025 Earnings Call. My name is Carla, and I will be coordinating your call today. During the presentation, you will have the opportunity to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I would now like to hand you over to Stephan Bisson to begin. Stephan, please go ahead when you're ready.

Good afternoon. And thank you for joining our 2025 first quarter earnings call. With me on the call today are Nick Bryan and Matthew Siegel. After discussion of our financial results, we'll open the lines for a question and answer session. Our comments today will refer to the earnings release and slide presentation that you can find on the investor relations section of our website, outfront.com. After today's call is concluded, an audio archive replay 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 files, including our 2024 Form 10-K, as well as our Q1 2025 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. With that, let me turn the call over to Nick.

Thanks, Stefan, and good afternoon, everyone. Before getting into the numbers, I'd like to share some thoughts on my first few months in the executive role at OutRun and some of the plans we have started to put into action. The biggest and most important thing I've learned since stepping in to lead Outfront is that this company is built on extremely strong foundations that drive positive business outcomes for our clients. Over the past 10 weeks, I've talked with most agency, major agency partners and the trade industry organizations, as well as met with many important advertisers and Outfront employees across the US. Our continued growth whether at a national, regional, or local level, will be determined by our ability to innovate, build leading brands, and drive sales for our customers. To ensure that our company continues to strengthen our foundations, we are focusing as a management team on four strategic imperatives. First, we're focused on optimizing our sales strategies and ways of working. Second, We continue to modernize our workflow and processes. Third, we're focused on driving new demand for non-out-of-home advertisers in high spending industry categories. And finally, we're demanding the highest standards of operational excellence across the organization. As I mentioned on the last call, I remain convinced there is significant potential to unlock within the company, and we have started on a path to deliver on these objectives. Now turning to our quarter one results, the headline numbers of which you can see on slide three, organic revenues grew slightly, broadly in line with our guidance that we provided in February, while OEBDA was 64 million and AFFO was 24 million. Slide four shows us segment results, billboard revenues, which includes a 2 percentage point headwind from the exit of a large, marginally profitable New York billboard contract late last year, were down 1%. Transit grew 2.6%, with strong growth in the New York MTA being offset by weakness at other franchises, particularly LA buses. Other revenues, which now principally consist of low-margin digital equipment sales, grew by about 2 million. Slide five shows our detailed billboard revenue. The 1% decline was primarily due to previously mentioned New York contract exit, the revenues and expenses of which are still included in our reported 2024 financial statements. Digital billboard revenues were up 5.4%, while static revenues were down about 3.5%. I'd like to quickly shout out the South, which was our strongest billboard region. Slide six shows our detailed transit revenue. The 3% top line growth was driven by nearly 11% growth in our digital revenues, which were partially offset by a 3.4% decline in our static revenues. The New York MTA outpaced the consolidated transit growth rate, growing by about 10% during the quarter. On a consolidated revenue basis, our stronger categories during the quarter were legal, utilities, and financial. The weaker categories during the quarter were health and medical, government and political, and CPG. Slide 7 shows our combined digital revenue performance, which grew almost 7% in the quarter and represented nearly 33% of total organic revenues, up from about 31% last year. Programmatic and digital direct automated sales were up nearly 20% during the period, and represented 16% of total digital revenues, up from 14.5% in the same period last year. The breakdown of local and national revenues can be seen on slide A. Local was down 3% year on year during the quarter, with growth in New York City transit being more than offset by weakness in billboard. National grew 4% during the first quarter, driven by improved creative efforts on advertising sales specifically around the Super Bowl. Slide 9 shows our solid billboard yield growth, which was up about 2% year-on-year to over $2,600 per month. The drivers of this were digital yield growth and our continued digital conversions, increasing our percentage of inventory that is now digitized. With only about 5% of our total billboard inventory digital, and accelerated growth in automatic revenues that I described earlier, we see significant room for continued growth. Summing up revenue, quarter one was broadly in line with our expectations, despite an uncertain economic climate. With that, let me now hand it over to Matt to review the rest of our financials.