Townsquare Q3 Net Revs Down 1%, Earnings Decline

RADIO ONLINE | Wednesday, November 8, 2017

Townsquare Media

Townsquare Media reported third quarter net revenue decreased 1% to $164.1 million from $165.8 million in 2016. Local Marketing Solutions net revenue grew 1.7% to $90.5 million, while Entertainment net revenue declined 4.1% to $73.6 million, due to revenue declines in certain live events and national digital business. Adjusted EBITDA decreased 11.1% to $39.7 million from $44.7 million. The company posted a net income of $14.3 million, down 9.9% from to $15.9 million in the same period last year.

"The highlight of Townsquare's third quarter was, without a doubt, the strength of our Local Marketing Solutions segment, which delivered net revenue growth of 1.7%, and 3.0% excluding political revenue," commented Townsquare Co-CEO Bill Wilson. "However, challenges in our smaller business segment, Entertainment, offset these strong results, resulting in an overall decline to net revenue, net income and Adjusted EBITDA of 1.0%, 9.9% and 11.1%, respectively. Due to these challenges, we have begun a strategic review of our Entertainment business."

"We are very pleased with the success of our Local Marketing Solutions segment in particular the continued growth of Townsquare Interactive, our digital marketing solutions business, and Townsquare Ignite, our programmatic digital advertising platform," added Co-CEO Dhruv Prasad. "Local Marketing Solutions is the core of our business, and the strength of our local products and services have allowed us to deliver consistent growth for the 15th consecutive quarter."

In October 2017, Bill Wilson and Dhruv Prasad were appointed co-CEO's of Townsquare, succeeding Steven Price, who is now serving as Executive Chairman.