Sean Reilly appeared yesterday at the JP Morgan Global Technology, Media and Communications Conference after missing the GO 2022 Out of home media conference with covid. Here are some of his comments.
Lamar is setting records
We’re on fire. Industry’s on fire. Lamar is continuing to set records every day. First quarter we set records for almost every financial metric – revenues, ebidta, ffo…We released last week…We beat analysts expectations on every single metric and then we raised our guidance and raise our dividend substantially…I’m not seeing anything that suggests the momentum is slowing down.
Advertisers
A lot of confidence in the agency world, particularly the specialists agencies that buy out of home…their budgets are growing and their clients are glad they’re using out of home…Political this year is stronger than it was in the presidential year. I’ve never seen that before…We’re getting more political dollars than we ever have…there was an earlier than normal spend…
Reilly talks about Verde Outdoor.
Carvana..they love billboards. They love billboards so much that the founder put his nephew in the billboard industry. He bought a plant. They really believe in the medium.
2022 forecast
We told the world about 9 months ago that we were going to go aggressively after rate – and we have…We’re going to end the year being up something like 9% on the top. That’s going to translate into low double digits growth in EBIDTA.
Lamar will do fine in a mild recession
I’ve managed through a lot of recessions…In a garden variety recession we are not as cyclical as people think. We’ve never been down more than 2% on the top. and we’ve never been down in successive years in a garden variety recession. Now there’s a couple reasons for that. We have the lowest CPM in all of advertising. so if somebody does sense that their world is slowing down and they need to cut back, they cut back on ad spend that costs them a lot more. So they typically cut back on TV…some digital stuff…The other thing is the term of our contracts. The average length of our contracts is 4 months.
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