Clear Channel Outdoor CEO Scott Wells delivered upbeat remarks at yesterday’s Morgan Stanley Technology, Media and Telecom Conference.  Here are some of his remarks.

The advertising spend upside

Only about half of the campaigns that get initiated use out of home…speaks to the opportunity that’s ahead for us.

Sales force changes 

We’ve launched two new sales forces…a programmatic sales force and a direct to client sales force…with all of the layers between us and our customers…we don’t see the agencies are best suited to see that money is going to out of home…

Digital billboard revenues seasonal

They grow faster, they are a little more volatile…The more digital is in your mix the more you’re going to seeing a 4th quarter peak…

Out of home is a GDP+ business

We believe we are a real GDP plus business…because of the scarcity of our asset, the value of our asset…we were seeing that kind of growth in the 6-7 quarters before covid…the dynamics which were in place before covid remain true…

Hot sectors

Theatrical has come back…they have a fantastic release schedule…Amusements has come back. Restaurants are coming back…automotive is certainly a little more slow…the auto insurers have pulled back because more accidents are happening…Streaming really grew during the pandemic…Sports betting…has not been huge for us…

Capex

60% of it is going to be digital.  It’s heavily digital and heavily overweight to the US.

Supply chain issues

Not something that keeps me up at this moment.

Leverage

It’s not a level that we want to keep…We can service what we have.  We need to grow and we need to do things like acquisitions…We have a lot of runway because we did the whole debt stack right before covid.

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