Billboard Insider asked SignValue’s Paul Wright to talk about OUTFRONT’s Canadian sale and new equity investors. Wright also talked about the return of airport traffic which is good news for OUTFRONT, JCDecaux and Clear Channel Outdoor.
What’s your take on the OUTFRONT Canada sale?
We like OUTFRONT’s sale of their Canadian assets and their focus on domestic operations. The sale price won’t move the needle too much on debt service, but it should bring their sights on US markets into better focus. Now if they can renegotiate the agreement with the Port Authority for the NYC subway system they’ll start to move in the right direction. Based on the numbers reported, it looks like OUT sold the Canadian business at multiples slightly below, but close to, what their stock price was trading at in Q2 2023 when the deal was being negotiated (deal at 3.26x NR and 15x Cash Flow).
What do you think of the Moreno et al buy-in?
We like the investment Moreno and Verde are making in both OUT and CCO. Public company multiples are at very reasonable prices right now. They both know the OOH industry very well and recognized the opportunity to strike while the iron was hot, so their opinions should carry considerable weight in our view.
You ran across some encouraging stats for the airport ad business.
Yes, as we have been traveling across the country to visit our clients, we have noticed an uptick in volume at the airport. It also looks like airports are seeing a significant increase in passenger volumes in October and November of this year, according to Chartr. This is good news, especially for Clear Channel and JCDecaux. Hopefully that trend will continue.
Our advisors are always happy to talk with your readers about the OOH industry or their plans to buy, sell or finance OOH assets.
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