OUTFRONT Media's Q2 2025: Key Contradictions in Entertainment Performance, L.A. Contract Impact, and Revenue Growth Strategies

Entertainment vertical performance and expectations, impact of L.A. contract exit, transit revenue and ridership impact, outdoor billboard revenue growth drivers, and digital revenue growth and strategy are the key contradictions discussed in OUTFRONT Media Inc.'s latest 2025Q2 earnings call.



Organic Revenue Performance and Strategic Shifts:
- OUTFRONT Media Inc.'s organic revenues were essentially flat in Q2 2025, in line with prior guidance.
- The decline in billboard revenues, particularly from the exit of two large marginally profitable billboard contracts in New York and Los Angeles, accounted for a 2.5% decrease. Transit grew by 5.6% due to broad-based growth across franchises.
- The structural changes, including the rebranding of local and national sales teams, redrafting of the Brand Solutions Group, and centralization of operational and real estate functions, were aimed at accelerating demand growth and reinforcing OUTFRONT's position as a leading out-of-home media company.

Financial Impact of Restructuring:
- The company incurred a $19.8 million restructuring charge in Q2 due to the reduction of approximately 120 employees.
- This action is expected to yield an annualized expense savings of approximately $18 million to $20 million, with half of the savings expected by the end of 2025.
- The restructuring is intended to reduce the cost base and increase financial flexibility.

Digital Revenue Growth and Programmatic Focus:
- Digital revenues grew by 1.5% in Q2, representing over 34% of total organic revenues.
- Programmatic and digital direct automated sales were up nearly 20%, accounting for 16.5% of total digital revenues.
- The focus on automated digital sales is driven by the growing market of dedicated digital media buyers who have not yet embraced the digital out-of-home ecosystem.

Enterprise Sales and Revenue Operations Improvements:
- Enterprise sales contributed relatively evenly to transit growth, with mid-single-digit growth in transit offsetting weaker billboard results.
- The company made significant leadership changes, hiring Jim Norton as Chief Revenue Officer of Enterprise Sales and promoting Mark Bonanni to Chief Revenue Officer of Commercial Sales.
- These changes are part of an effort to increase demand from large enterprise advertisers and improve revenue yield and profitability through enhanced programmatic scale, simplified planning and buying processes, and improved audience measurement capabilities.

Transit Revenue Growth and Market Dynamics:
- Transit revenues grew by 5.6% in Q2, with digital revenues up by 17%, partially offset by a 2.9% decline in static revenues.
- The growth in transit revenues is driven by strong performance in the New York MTA and improvements in other franchises as a result of increased management focus and incentives.
- The decline in static revenues is attributed to structural shifts towards digital and the overall tired nature of the static product in transit markets.