Specialist
VP at Clear Channel Outdoor Holdings Inc
Agenda
- Outdoor advertising competitive landscape overview with consideration of macroeconomic pressures
- Dynamics and trends impacting advertising demand, including conversions from static to digital billboards
- Clear Channel Outdoor's (NYSE: CCO) core differentiators vs competitors such as Outfront (NYSE: OUT) or Lamar (NASDAQ: LAMR)
- 1-3-year outlook
Questions
1.
Could you outline Clear Channel’s operating environment and near-term key trends?
2.
How are macro environmental pressures – rising rates, potential recession, inflation and pandemic recovery – impacting Clear Channel and the outdoor advertising space?
3.
Can you expand on the impact of the 2007-08 Great Financial Crisis and the subsequent demand pullback for outdoor or out-of-home advertising players?
4.
How might different customers or customer verticals pull back or adjust ad spend due to macroeconomic environment pressures, given what we saw during the Great Financial Crisis? Might there be severe pullback from restaurants, luxury or non-luxury retail or entertainment segments?
5.
How would Clear Channel’s top-line revenue and net profit margins perform in a mild or moderate recession?
6.
How resilient is out-of-home or outdoor advertising compared to other forms of advertising in a recession?
7.
What’s the ad budget share mix of outdoor typical traditional static billboards vs digital advertising or traditional advertising for larger companies?
8.
What are the drivers for pushing the mentioned 6-8% share of total ad budgets for outdoor into that double-digit, over 10% range?
9.
How does Clear Channel compare to other out-of-home advertising players? Where does the company have an advantage and where is it weaker than competitors?
10.
What are the differences in inventory between Clear Channel and a company such as Outfront?
11.
Do you have any comment on the idea that Outfront has a natural monopoly with transit authorities in major cities on the East Coast, as shared in a recent Third Bridge Forum Interview?
12.
Are there other dynamics or advantages with Clear Channel’s positioning vs competitors such as Outfront or Lamar? Are there pain points for customers working with Clear Channel vs other players?
13.
How does Clear Channel’s asset and real estate portfolio compare to competitors?
14.
How often does Clear Channel compete with players such as Lamar or Outfront for permits or leases on these assets?
15.
How would you grade Clear Channel’s ability to navigate processes for acquiring permits or leases or renegotiating contracts vs competitors such as Lamar or Outfront? What are their respective approaches to managing issues, and where are they weaker or more effective?
16.
What is the CAPEX for digital billboards? What is the ROI for conversions of static billboards to digital? You mentioned digital development is crucial.
17.
What percentage of Clear Channel’s inventory is likely to be targeted for conversion from static billboards to digital? Ultimately, what is an ideal mix of digital and static billboards for the company?
18.
What are the differences in how maintenance is approached for different assets – static or digital, transit or airport?
19.
What percent of Clear Channel’s Q2 2022 40% CAPEX YoY growth do you think is true billboard growth vs maintenance spend?
20.
What is your 1-3-year outlook for Clear Channel? What is the biggest risk and biggest opportunity?
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