Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) Q4 2022 Earnings Call Transcript

Avi Steiner: Great. And last one for me, and thank you for the time. Use of proceeds from the Switzerland sale, recognizing you can reinvest that in the business. I’m just curious if we should ultimately be thinking about it as targeting the CCI BV notes and future asset sales out of that entity, and thank you again.

Scott Wells: Yes. I think we’ve talked about how we’re planning to reinvest those proceeds in the business, which is permitted under the various montage interest, including the CCI BV indentures, how that will free up cash flow from the European operations that would’ve otherwise been used to fund those investments. I think right now, given the kind of the current environment, we’ll probably bolster liquidity with those proceeds, with that cash that isn’t otherwise used once the sale of Switzerland occurs and is completed. But that could change over time and they’ll be available to use throughout Europe for additional reinvestment and other things, including debt repurchases of the CCI BV notes. But it’s probably premature really to go there yet. I think right now, it’s liquidity optimization once the deal actually closes.

Avi Steiner: Thank you very much.

Operator: Our next question comes from Richard Choe from JPMorgan. Your line is open.

Richard Choe: Hi. I just wanted to ask for the guidance, should airports be up for the year and then digital to be up and non-digital to be flat? Is that kind of implied in the guidance?

Brian Coleman: Well, we provide consolidated guidance, Richard, but we don’t really break it out. I think airports is performing well. And as Scott previously mentioned, there’s still some room to run an airport. So, I think we will – we’re positive on that business. I don’t know, Scott, about the digital, non-digital color going forward, if there’s anything to say to that.

Scott Wells: Yes. I mean, just on the dynamic. I mean, you’ve seen steady and increasing rapidity of our business becoming more digital over time. I mean, you see the penetration. I think the reporting will be illuminating to some folks on how penetrated some parts of the portfolio are of digital airports in Northern Europe being particular standouts in that category. So, yes, digital is a growth part of the story, but we’ve been pleased by how our non-digital has held up. Much of the 2022 performance in the non-digital was kind of category-driven by some of the mix shift we had in our advertiser base. And that should sort of wash out as we get into 2023. So, I think our consolidated guidance and our consolidated guidance is trying to give you some color on some of the underlying dynamics.

Richard Choe: Got it. Thank you. And then in Europe, is there more room to rebound in Southern Europe than Northern Europe, or how should we think about the two for the year? I’m not trying to get guidance, but just in terms of opportunity versus last year.

Scott Wells: Yes. I mean it’s interesting as you think about rebound, but I think in general, yes, would be the answer to that question. And there are some contract puts and takes. That’s always a dynamic within Europe, and I think we called a couple of them out in the comments in terms of where things are. But yes, in general, Southern Europe has recovered more slowly from COVID, and that should have an opportunity in those markets this year.

Richard Choe: Great. Thank you.

Operator: . We now turn to Jim Goss from Barrington Research. Your line is open.