• Jeremy Male on the MTA, new digitals and cashflow priorities

    Here’s a selection of OUTFRONT Media CEO Jeremy Male’s comments at the Oppenheimer Technology, Internet and Communications Conference on August 7, 2019.

    On the MTA rollout

    At this time last year we only had a handful of signs on the MTA and now we’ve got over 3,000…We’re building out 50,000 screens…we would like to be able to serve ads based on who’s there at the time…we might have a fixed price at the morning rush hour…and rtb (insider’s note: real time bidding) at midday.

    On the difficulty of installing new digital billboards.

    Firstly you’ve got to get zoning…that’s not a slam dunk.  Sometimes to get one digital you’ve got to take 6 static faces down or perform public service.  The second is we look to make a 20% IRR and within that IRR we include the potential loss of static revenues onto that digital board…

    On out of home category gaps

    When you look at the share of outdoor in the US its 4.5% of all advertising versus 7.5% internationally…when you get to national advertisers it’s more like 2%.  We certainly over-index with tech…All of the tech brands are supporting our medium…and increasingly the new DTC brands are supporting our media.  There are some traditional categories where we’re underindexing…CPG…auto has been a difficult category for us.  Telecom…has been going backwards…P&G has always had their own econometric modelling and have been huge supporters of TV…

    On Cashflow Priorities

    We’re a REIT…and we have to dividend out…We’ll be thinking about that as we go forward…We continue to want to invest in digital…We want to certainly keep our hand in the tech and acquisitions markets.  We’ve don’t 2 in the last 3-6 months.  And then we’ve got the MTA buildout…to fund over the next couple of years and that’s an incremental $250 million.

    On acquisitions

    We are absolutely committed to a top 25 DMA strategy…I won’t be competing for assets in very small DMA’s.  We’re also open to swapping assets…We did one in Boston a few months ago.

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