Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: You provided a relatively wide guidance range for the first quarter. Is this conservatism or is there more uncertainty now? Also, how should margins trend this year after exiting a few territories? A: The guidance range is typical for the first quarter, but there are uncertainties, such as the situation in LA. We expect growth to pick up in the third and fourth quarters. Regarding margins, the MTA contract will impact America's margins, and airport margins will normalize as rent abatements from COVID end. We expect margins to build throughout the year.
Q: National ads were flat year-over-year in Q4. What are your expectations for national ads in 2025, and which categories are showing strength or weakness? A: National ads are choppy, particularly in the roadside business, while airports saw double-digit growth. We expect strength in California and the media entertainment sector. Pharmaceuticals are also ramping up, and telecom is showing positive signs. However, national spending remains varied, and we aim to stabilize it.
Q: Regarding the MTA Billboard contract, should we expect 2% growth for the American segment? How does this affect CapEx? A: Yes, the MTA contract will contribute a couple of points of growth for the America segment. CapEx related to the contract will be part of our normal digital upgrades and maintenance, without a significant spike in overall spending.
Q: What is the implied guide for corporate expenses in 2025, and is there potential upside as you focus on the US? A: Corporate expenses are currently in the mid-$30 million range. We expect savings as divestitures are completed, with more impact in 2026 as reporting requirements decrease.
Q: With a focus on the US, will you accelerate digital board installations? How has trade uncertainty impacted investment plans? A: We maintain a steady pace of digital sign additions. Acceleration depends on opportunities in underpenetrated cities. Trade uncertainty hasn't significantly impacted our plans, and we continue to expand digital offerings where feasible.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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