OUTFRONT Media (OUT) Clinches WMATA Advertising Contract
Zacks Investment Research | Jan 21, 2020 09:02PM ET
OUTFRONT Media Inc. (NYSE:OUT) has been awarded a long-term advertising contract by the Washington Metropolitan Area Transit Authority ("WMATA"). The move marks continuation of the company’s partnership with WMATA, opening up scope to capitalize from its presence in Washington, D.C., which is a vital and technologically-advanced market.
Particularly, the current contract has been operated by OUTFRONT Media since July 2014. The new contract, scheduled to start from July 2020, has an initial 10-year term. There are two subsequent five-year extensions as well at WMATA's option.
Jeremy Male, chairman and chief executive officer of OUTFRONT Media, said that “the addition of 1,500 new Liveboard digital displays to the Metrorail system will enhance both the ridership experience and the advertising opportunities.”
According to Nielsen Media Research, Washington, D.C. is the sixth largest market in the United States. Moreover, in 2018, the WMATA network of 1,100 railcars and 1,648 buses supported 295 million passenger trips. Therefore, this long-term advertising contract offers decent cope to OUTFRONT Media to bolster its top line and the digital spreading out complements similar media networks in New York City, Boston, Minneapolis and San Francisco.
OUTFRONT Media is focused on increasing its digital-display assets at prime locations. It has resorted to acquisitions, expansion and conversion of static billboard displays to digital, which bode well for long-term growth. With the expansion of footprint and technology platform, the company is banking on out-of-home (OOH) advertising. It also has sufficient balance-sheet strength to pursue growth opportunities. Its geographically-diversified portfolio is benefiting from upbeat trends in national advertising. Yet, elevated capital expenditures due to inorganic growth activities affect the company’s performance.
This Zacks Rank #3 (Hold) stock has gained 44.1% so far this year, outperforming 19% growth recorded by the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.