Here’s a selection of OUTFRONT CEO Jeremy Male’s comments at the Citi 2023 Communications, Media and Entertainment Conference last week.

OUTFRONT had a busy M&A year in 2022

2022 was a great year for the industry…We’re up in the 20-ish range…We spent $400 million in terms of tuck-ins. .

Digital billboards still a good investment

We look to make a minimum 20% IRR…We make about 4X on revenue and our costs are 2-2.5X…Those numbers have held for a number of years…We believe that the best dollar that we can spend right now is on organic digital development…

But caution is in order

If you’ve converted 15% of your inventory in a particular market to digital you’ve doubled your supply.  So we also have one eye on the supply side.

2023 priorities

Yields and inventory.  Yield on current inventory will be our key focus…digital deployment…we’ll remain attentive in the tuck-in acquisitions market…that’s something we’ll be putting a lot of attention into…

The Transit recovery

The passenger side is growing more slowly than we originally thought as we came out of covid.  It’s a more elongated recovery.  But we still feel good about transit…90 plus of our top 100 customers buy transit and billboards from us.  They fit together like hand in glove.

What he wishes investors knew about OUTFRONT

We as a company spend an enormous amount of time talking about the MTA…We’ve got a relatively small amount of capital still to be deployed.  We’re going to be OIBIDA positive…We have until 2033 to enjoy those cash returns…We feel great about the MTA.  Nobody else does…We feel much better about that piece of our business than the rest of the world does.

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