Townsquare Reports Modest Revenue Growth in Q3 2024

RADIO ONLINE | Thursday, November 7, 2024

Townsquare Media

Townsquare Media reported slight increase in its third quarter net revenue for 2024, with figures slightly up by 0.2% compared to the same period last year. Net revenue rose marginally to $115.3 million, despite a challenging market environment. Net income saw a notable improvement, rising by $47.8 million from the previous year to $11.3 million in Q3. This increase was largely attributable to a significant reduction in non-cash impairment charges and more efficient cost management strategies.

The company's CEO, Bill Wilson, highlighted the strategic successes, noting, "This quarter, our growth was primarily driven by the robust performance of our digital and broadcast advertising segments and the beneficial impact of political advertising revenues. Our focus on local markets and our differentiated digital platforms continue to yield substantial returns."

Digital revenue represented a significant portion of the company's earnings, constituting 52% of the total net revenue year-to-date. Digital advertising, including the services provided by Townsquare Ignite, grew by 4.7% year-over-year, while broadcast advertising showed a modest increase of 0.3%. However, the company's Subscription Digital Marketing Solutions segment saw a decrease of 5.8%.

Despite the overall growth in revenue, the company reported a decrease in Adjusted EBITDA, which fell by 6.3% year-over-year to $25.5 million, primarily due to an increase in operating costs and a more competitive market landscape.

Additionally, Townsquare has been active in capital management, having repurchased $25 million of its bonds and $24 million of equity during the year, which includes an accretive share repurchase from Madison Square Garden. The company also continues to deliver shareholder value through consistent dividend payments, with the latest quarterly cash dividend announced at $0.1975 per share.

Looking forward, Townsquare provided guidance for the fourth quarter, expecting net revenue to be between $114.8 million and $118.8 million and Adjusted EBITDA to be between $30.8 million and $31.8 million. For the full year of 2024, the company anticipates net revenue to range from $448 million to $452 million and Adjusted EBITDA from $100 million to $101 million.