OUTFRONT Media's Q4 2024: Dissecting Contradictions in National Ad Growth, Transit Performance, and Revenue Drivers

These are the key contradictions discussed in OUTFRONT Media Inc.'s latest 2024Q4 earnings call, specifically including: National Ad Growth Performance and Expectations, Transit OIBDA Growth Drivers, National Advertising Growth Expectations, and Transit Ridership Recovery Impact on Revenues:



Revenue and OIBDA Growth:
- OUTFRONT Media reported organic revenues of $395.3 million for Q4 2024, up 3.9% compared to the previous quarter, while OIBDA was $155 million.
- The growth was driven by strong performance in transit revenues, which increased by over 9%, led by the New York MTA, and higher billboard yields.

Billboard Segment Performance:
- Billboard revenue grew by 2% in Q4, with digital billboard revenue up by 4.7% and static revenue slightly increasing.
- The increase was due to higher rates and better occupancy, despite exiting a marginally profitable contract.

Transit Segment Profitability:
- Transit adjusted OIBDA rose by over $8 million, returning the segment to profitability for the full year.
- This was attributed to a 9% top-line growth, driven by a 12% increase in digital revenues and a 7% rise in static revenues, with the New York MTA contributing significantly.

Digital Revenue and Automation:
- Digital revenues represented nearly 36% of the total, up from 34% last year, with total digital automated sales rising by over 40%.
- The growth was due to the expansion of programmatic and digital direct products across billboards and transit, with a focus on automated sales platforms.

National Book of Business:
- National revenues grew by a strong 7%, with the tech and financial verticals driving this growth.
- This was attributed to the strength of the company's national book of business and positive national book performance.