Outfront’s Male and Shassian Interviewed by REIT.com

OutfrontLOGOReit.com has an interview with Outfront Chairman and CEO Jeremy Male and CFO Donald Shassian.  Some of the highlights of the interview.

  • Male says that out-of-home was a 2X GDP business from 1990-2015 with annual revenue growth of 4%/year or twice the 2%/year GDP growth rate.  Looks to Insider like the Outdoor industry is a GDP business (see table below where Insider compares US outdoor revenues with US GDP).  Outdoor revenues have grown by 4.1%/year since 1994 versus 4.3%/year growth for GDP.  Out-of-home actually lagged the GDP from 2000-2015 due to the impact of the great recession which effected outdoor much more heavily than the economy as a whole.  Outdoor revenues declined 19% during the worst year of the Great Recession while annual GDP only declined by 2%.
  • Male mentions that Apple, Netflix and Google are Outfront’s largest advertisers.  Insider thinks this reflects Outfront’s focus on the top 25 DMA’s.  Insider guesses that McDonalds and Cracker Barrell would be the largest advertisers in smaller markets.
  • Shassian points out that 35% of the country’s outdoor plant is owned by smaller independent companies.  Outfront is looking for tuck-in acquisitions in the New York and Los Angeles markets where it has an extensive plant.  You should talk to Outfront if you are in those markets and want to sell.

US Out of Home Revenues Compared to US Annual Gross Domestic Product 1994-2015

Screen Shot 2016-04-14 at 9.18.12 AM


Paid Advertisement

Reagan Juggernaut - Billboard Insider

Print Friendly, PDF & Email

Comments are closed.