Outfront Media (OUT) investor relations material

Advertising environment and outlook

• Strong third quarter performance led by transit, with fourth quarter growth expected to exceed Q3 and improved visibility into 2026 compared to prior years.

• Local advertising remains stable with less volatility, supported by management changes and increased digital marketing focus.

• Legal profession, retail, and auto dealers are key drivers in local markets, with legal being the largest and fastest-growing category.

• Major events like the World Cup and Super Bowl provide revenue tailwinds and opportunities for experiential campaigns beyond traditional ads.

Digital transformation and programmatic growth

• Digital revenue is at 35% and expected to reach 40% by end of next year, with no slowdown anticipated.

• All markets, including smaller ones, have potential for more digital inventory, with higher value in large cities but higher margins in smaller markets.

• Programmatic revenue grew about 30%, with nearly all inventory now connected to automated platforms except for train cars.

• Focus on expanding programmatic sales through direct coverage of digital agencies and new automated channels for small customers.

Transit and MTA performance

• Transit revenue up 24% in Q3, with New York MTA up 37%; high incremental EBITDA as revenue approaches minimum guarantee.

• MTA contract runs through 2030 with a five-year extension option; recent focus on creative campaigns and maximizing contract value.

• Ridership has stabilized at about 80% of 2019 levels; key metrics now include CPMs and driving advertiser demand through unique experiences.