1、North America Equity Research05 August 2025J P M O R G A NUS Outdoor AdvertisingOUT&CCO:Mixed Billboard Trends and Transit StrengthMedia,Entertainment and AdvertisingDavid Karnovsky,CFA AC(1-212)622-Douglas Wardlaw(1-212)622 Kiscada A Hastings(1-212)622-J.P.Morgan Securities LLCWere updating our mod

2、els for OUT and CCO which reported Q2 results earlier today.Our EBITDA forecasts remain broadly unchanged as both companies reiterated their full year expectations,and on our estimates,should see a significant acceleration in adj.EBITDA growth in 2H25(OUT+9%y/y,CCO+8%y/y)following a softer delivery

3、in 1H25(OUT-2%,CCO-1%).For Billboard,on an underlying basis(excluding contract exits and starts)we estimate CCO growth improved marginally from Q1 while OUT decelerated slightly.Both companies flagged entertainment(movie marketing)and restaurants as soft categories.Guidance implies better trends for

4、 Q3,which is mostly booked at this point.Airports and Transit meanwhile accelerated,with CCO and OUT noting strength in New York,and the outlooks imply continued or better growth trends.OUT:results a touch below expectations with softer Billboard offset by Transit;AFFO MSD growth guide reiterated.OU

5、T reported Q2 revenue/EBITDA of$460m/$124m,slightly below our$463m/$125m.Billboard revenue was down-2.5%y/y,coming in 2%softer than our expectations($351m vs our$358m)and below guidance for“flattish to slightly down”,while Transit(+5.6%y/y)was 2%better than modeled($106m vs our$104m)and ahead of gui

6、dance for“low-to-mid single digits”.Billboard topline was pressured by contract exits in NYC(end-of-October 24)and LA(winding down in Q225),and excluding these accounts,underlying results were flat y/y,we estimate a slight deceleration from Q1.For Q3,the company expects a LSD reported decline,and ba