OUTFRONT Media Inc. (NYSE: OUT)

OUTFRONT Media Inc. is a real estate investment trust that provides advertising space on out of home advertising structures and sites in the United States. The company owns billboard structures located on heavily traveled highways in top Nielsen designated market areas and operates transit advertising displays under exclusive contracts with municipalities in large cities. It serves approximately 120 markets across the U. S. including the 25 largest markets such as New York City Los Angeles and San Francisco. Beyond leasing displays OUTFRONT Media offers value added services such as pre campaign research consumer insights print production creative services and post campaign tracking and analytics.

OUTFRONT Media generates revenue primarily by leasing advertising space on its billboard and transit displays to advertisers. The company also earns fees from value added services including campaign research creative production and post campaign analytics. Digital displays contribute a growing share of revenue because they command higher rates per unit and allow multiple advertisements to run on the same screen. Revenue is diversified across many industries with no single customer accounting for more than two percent of total sales.

The company operates through two reportable operating segments Billboard and Transit.

• The Billboard segment includes ownership of physical billboard structures possession of legal permits and leasing of underlying sites to display advertising copy on static and digital billboards located mainly along highways in major metropolitan areas. The segment focuses on converting traditional static billboards to digital format to increase revenue per display and improve targeting capabilities.

• The Transit segment comprises advertising displays installed on buses subways commuter rail and transit shelters under exclusive multi year contracts with municipal transit authorities in large U. S. cities. The segment also operates digital transit displays that deliver dynamic content and generate higher revenue per unit compared with static transit inventory.

OUTFRONT Media ranks among the largest providers of out of home advertising in the United States competing with national players such as Lamar Clear Channel Outdoor JCDecaux and Intersection as well as numerous regional and local operators. The company’s competitive advantages stem from its extensive portfolio of billboards that were legally constructed under prior laws and remain legal to operate although they could not be built under current rules and from its growing network of digital displays that enable precise audience measurement and programmatic sales. Its investments in data tools and attribution solutions further differentiate its offering from traditional media competitors.

OUTFRONT Media serves a broad base of advertisers spanning industries such as entertainment retail legal services health care technology financial services travel restaurants education consumer packaged goods utilities government automotive alcohol real estate non profit insurance and miscellaneous service providers. No single customer represents more than two percent of the company’s revenue reflecting a highly diversified client base.