Townsquare Q4 Net Revs Down 3.2%, Loss Swings to Profit

RADIO ONLINE | Tuesday, March 16, 2021

Townsquare Media

Townsquare Media reported fourth quarter net revenue decreased 3.2% to to $108.5 million from $112.1 million in 2019. Townsquare Interactive net subscription revenue increased 16.3% to $18.8 million, advertising net revenue fell 4.5%, to $89.7 million and live events net revenue declined 99.5% to $10,000. Adjusted EBITDA increased 8.4% to $27 million from $24.9 million. The company posted a net income of $4.5 million, as compared to a net loss of $78.3 million in the year-ago period.

"As I look back over the past year, I am extremely proud of Townsquare's performance, driven by our passionate and committed employees, our loyal audience and communities, and our resilient 'Local First' operating strategy. Our fourth quarter financial results reflect that performance as they exceeded our goals and expectations, and as we look at 2021, we believe that we will continue to see strong improvement and strong results in our business," said CEO Bill Wilson. "Although we are proud of our roots and DNA in local radio and we continue to love local radio, 2020 was the year Townsquare became a 'Digital First' company."

Wilson continued, "We ended 2020 with over $83 million of cash on our balance sheet, only a slight decline from 2019's cash balance of $85 million, and generated $32 million of cash flow from continuing operations in a year where Adjusted EBITDA declined (due to the pandemic) by $40 million. In addition, we repaid $15 million of debt (prior to the refinancing) and made $4 million of dividend payments. Additionally, we recently announced that we repurchased all of Oaktree Capital's shares of Townsquare at $6.40 per security, a significant discount to the current share price. We are confident that this is a great transaction for Townsquare and our investors."

Wilson concluded, "I am very proud of the results we delivered in 2020 in the face of unprecedented challenges and turbulent times. Our Townsquare Team worked tirelessly and with great passion throughout the pandemic to help our Company, by helping local advertisers and businesses as well as by keeping local communities informed and entertained at a time when both needed it the most. Our team kept moving forward, although at times it did not always feel like it. As we close out Q1 and move into Q2 2021, we believe our Flywheel is moving forward and gaining greater momentum each month and each quarter."