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

Parts of Europe have recovered and are way, way ahead of 2019. Not all parts are. And so, there’s probably a little bit of a mix toward Europe in that revenue mix. It’s not massive, but we were very specific in giving consolidated guidance just because there are so many moving pieces across the portfolio. But we did build it, obviously, kind of bottoms up, but it becomes very unwieldy to try to guide in lots of little sub-segments. So, that’s why we did it as a whole. But hopefully, that gives you a flavor for the mix. And I’ll hand it to Brian to ask or to address the second question.

Brian Coleman: Sure. Thanks, Steve. I think our path to REIT optionality is both a deleveraging story, and then obviously getting the size of the portfolio of REITable assets to the right level. And so, the strategic review going on in Europe is obviously an important element to that. And while the ultimate resolution, if it’s through asset sales, is probably not directly deleveraging, at least not meaningfully so. It does carry with it reduced capital expense, simplification of the business, a lowering of corporate costs. And so, I do think visibility into the ultimate outcome there will be an important consideration as we look to other options to delever. And other options may be needed, and all options are on the table, but I think it’d be premature right now to really kind of dive into those.

The company has some runway. We’ve got the process going on and we’re going to be open-minded about the things that we can and need to do to delever the balance sheet. But it’s really that and getting the asset base in the right place being the two obstacles, so to speak, to putting ourselves in a position where we could eventually REIT this business.

Steven Cahall: Great. Thank you.

Operator: We now turn to Lance Vitanza from Cowen. Your line is open.

Unidentified Analyst: Hi, good morning. This is Jonathan on for Lance. My first question is really on the new segment reporting. Just curious to know, like what led to the new breakout?

Scott Wells: It’s a determination management makes based on really how we manage those businesses and how we allocate resources. So, the three elements were breaking out airports, and I think the size of that business also contributed to decision to break that out. The second piece was the division between Europe North and Europe South. And I think the numbers kind of historically speak to the differences in those business and the logical management and differential allocation of resources. And then the third piece is taking Singapore out of the Europe category, putting it into other – that decision probably speaks for itself. But it really is a management determination based on those criteria.

Unidentified Analyst: Okay. Can we expect much rent abatement in both the Americas and Europe going forward? I know from the slide in your presentation, it appears that Europe has largely tapered off, and while there’s still some in America, I kind of just want to get a better feel for that trajectory in €˜23.