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

Jim Goss: Thank you. Regarding the split of north and south for Europe, is it because of geographic operating similarities, or does it have any implications as to how you might decide to market the properties as you do this evaluation and increase the core of US?

Scott Wells: Yes. Jim, the decision to have this segmentation is really driven by accounting considerations and the way we manage the business. So, that is true. Now, part of that differentiation in management and differentiation in the allocation and resources can be tied to other things. But largely – and by the way, I think the segment reporting and the difference, particularly in Europe between the north and the south, gives some color into the different operating characteristics in those different regions. But it really is one of how we manage the business, who manages the business, what kind of resources we allocate to those businesses that drives the segment reporting, not – what you’re targeting for sale or not. Hopefully that helps.

Jim Goss: Okay, yes. And you just mentioned air airports in Northern Europe as a standout in terms of digital. You have roughly 42% of revenues both in US and Europe accounted for, are contributed by digital. And I wonder, is that pretty consistent by geography and category? Or, and how does that drive your expansion opportunity as you’re allocating capital?

Scott Wells: So digital is very different by geography, by contract, by sort of situation. And we do believe that ongoing digitization of this business is an opportunity. We are very penetrated in digital in the UK. Airports has become increasingly digital, and as you get into newer airports, they’re increasingly digital too. So, kind of, as you refresh contracts in any of those places, you’re going to see digital on the expansion. Obviously, in the America business, that’s where the big regulatory constraint is. And some of the countries in Europe, there are regulatory constraints on being able to do digital. But we’re finding over time, as more and more places have the experience that airports in the UK are having, that we’re able to increase usage of digital.

And clients do really like the immediacy of it. They like the flexibility of it. They like the creativity of it, the ability to, you know, day part messages to have a different message in the morning than the afternoon, those sort of things. So, the features of it we think are things that the customers like. So, we’re going to continue to go in that direction as we can. But it is very different by geography, and there’s not kind of an easy summary way to give you an answer to what I think you’re going for in the question. But it is definitely different by geography.

Jim Goss: Okay, thanks.

Operator: Our next question comes from Jason Bazinet from Citi. Your line is open.

Jason Bazinet: I just had a quick question on organic growth both for last year and what sort of organic growth is embedded in your guidance for this year. And in particular, I was just interested in how, if at all, inflation, both last year and your expectations this year, sort of influence your ability to take rate and influence the organic growth expectation.