Strategic Organizational Restructuring
OUTFRONT Media underwent a major internal reorganization, rebranding local sales teams as commercial and national sales teams as enterprise. This aims to optimize sales strategies and increase efficiency.
Transit Revenue Growth
Transit revenue grew by 5.6% with a notable 17% increase in digital revenues, driven by broad-based growth across most franchises.
Digital Revenue Performance
Digital revenues represented over 34% of total organic revenues and grew by 1.5% in the quarter. Excluding certain contract exits, digital revenue growth would have been about 5%.
Cost Reduction and Financial Flexibility
OUTFRONT Media incurred a $19.8 million restructuring charge leading to an expected annualized expense savings of $18 million to $20 million, enhancing financial flexibility.
Positive AFFO Growth
Adjusted Funds From Operations (AFFO) was $85 million, driven by higher billboard and transit OIBDA and lower interest expense.