Townsquare Q2 Net Revenue Up 13.6% to $121.9 Million

RADIO ONLINE | Tuesday, August 2, 2022

Townsquare Media

Townsquare Media reported second quarter net revenue increased 13.6% to $121.9 million from $107.3 million in 2021. Adjusted EBITDA grew 6.8% to $32.3 million from $30.2 million. Broadcast Advertising net revenue was up 1%, while Digital Advertising net revenue gained 25.4%, The company posted a net income of $4.9 million (24 cents per diluted share) down $5.2 million from $10 million in the year-ago period.

"Townsquare's second quarter net revenue increased year-over-year by +14%, exceeding our guidance range, and Adjusted EBITDA increased +7% year-over-year, meeting our guidance range. In addition, our digital revenue growth accelerated from the first quarter (Q1 +16% yearover-year), with second quarter total digital revenue increasing +21% year-over-year. Our strong top-line growth, margin profile, and cash generation characteristics have contributed to the reduction of our net leverage, now at a historical low of 4.65x as of June 30th, including the repurchase and retirement of $19 million of our Senior Secured Notes at or below par in Q2," commented Townsquare Media CEO Bill Wilson.

He added, "We are also pleased to announce that we are raising our FY 2022 guidance following the close of the Cherry Creek acquisition on June 17th. Our updated full year guidance reflects the ongoing momentum of our business and the strength of our performance to date, fueled by our differentiated digital platform. As a Digital First Local Media Company focused principally on markets outside of the Top 50 in the United States, we have a resilient digital growth engine supported by subscription digital marketing solutions, with a large addressable market and limited competition."

"As we move forward, we expect double-digit digital net revenue growth to continue at strong margins, reaching our digital revenue target of at least $275 million in 2024. With half of our total revenue and profit coming from digital today, it is our belief that over time as digital continues to meaningfully grow, Townsquare should and will be afforded a sum-of the-parts valuation that our digital assets deserve," said Wilson.