OUTFRONT Media Q2 Earnings Call Highlights

Strong Q2 performance: Revenue rose 14% year over year, while adjusted OIBDA increased 29% to $160 million and AFFO jumped 45% to $121 million. Transit revenue led growth with a 32% increase, including a 48% gain from New York’s MTA, while billboard revenue rose 8%. Digital and World Cup advertising boosted results: OUTFRONT generated more than $50 million in FIFA World Cup-related revenue, roughly half of which was incremental. Digital revenue grew more than 23% and reached about 37% of total revenue, with programmatic and automated digital sales climbing nearly 50%. Raised outlook and dividend: The company now expects reported 2026 AFFO to grow in the low-20% range and projects high-single-digit revenue growth in the third quarter. OUTFRONT also raised its quarterly dividend 10% to $0.33 per share while maintaining its approximately $90 million full-year capital expenditure forecast.

OUTFRONT Media NYSE: OUT reported stronger-than-expected second-quarter results, citing continued advertising demand, growth in transit and billboard revenue, and a contribution from FIFA World Cup-related campaigns. Chief Executive Officer Nick Brien said consolidated revenue increased 14% year over year in the second quarter, driven by 32% transit revenue growth and 8% billboard revenue growth. Adjusted OIBDA rose 29% to $160 million, while adjusted funds from operations, or AFFO, increased 45% to $121 million. The company generated more than $35 million in World Cup-related revenue during the quarter and more than $50 million overall, Brien said. OUTFRONT estimated that about half of the World Cup revenue was incremental to its typical business.

Transit growth led by New York MTA Transit revenue increased 32%, led by a 48% gain at the New York Metropolitan Transportation Authority. The strongest transit advertising categories were technology, entertainment and financial services, according to Brien. Digital transit revenue rose nearly 36% to approximately $68 million, while static transit revenue increased more than 29%. OUTFRONT estimated FIFA contributed about $17 million in transit revenue during the second quarter.

Billboard revenue grew 8%, or 9.4% excluding the effect of a previously announced exit from a large, marginally profitable billboard contract in Los Angeles. Technology, including artificial intelligence-related advertisers, along with legal and medical categories, were the strongest billboard categories. Digital billboard revenue increased 17.6% on a reported basis, while static and other billboard revenue rose 3.8%. Excluding the exited Los Angeles contract, digital billboard revenue would have risen more than 21% and static and other billboard revenue would have increased 4.3%, the company said. FIFA contributed an estimated $19 million to billboard revenue in the quarter. Combined digital revenue increased more than 23% and represented about 37% of total revenue, compared with 34% in the prior-year period. Excluding the Los Angeles contract, digital revenue would have increased 26%. Programmatic and digital direct automated sales climbed nearly 50% and accounted for 20% of digital revenue, up from about 17% a year earlier. Brien said the company sees “tremendous runway” for programmatic sales, noting that OUTFRONT remains below broader digital-media programmatic adoption levels. The company has added sales and strategy resources focused on its advertising technology relationships and programmatic business, he said.

Margins improve despite higher costs Billboard expenses increased nearly $15 million, or about 7%, year over year. Lease costs rose $6 million, reflecting higher variable lease expenses and contractual e...