Townsquare Media Reports Mixed Second Quarter Results

RADIO ONLINE | Wednesday, August 7, 2024

Townsquare Media

Townsquare Media reported a 2.5% year-over-year decline in net revenue from the second quarter to $118.2 million from $121.2 million in the previous year. The digital segment, which now constitutes 52% of total net revenue for the first half of the year, saw mixed results. Digital Advertising net revenue slightly increased by 1% year-over-year, while Subscription Digital Marketing Solutions (Townsquare Interactive) experienced a more significant decrease of 12.9%.

Adjusted EBITDA also fell by 8.3% to $26.2 million compared to $28.6 million in the same period last year, indicating tightening margins and operational challenges. The net loss was notably higher at $48.9 million, driven largely by a $25.3 million increase in the income tax provision and additional non-cash impairment charges.

Despite these headwinds, Townsquare's CEO, Bill Wilson, remained optimistic about the company's strategic direction. "Our focus on local markets and digital growth continues to position us well for future recovery and growth," Wilson stated. The company's robust digital platform and subscriber trends in Townsquare Interactive show potential upside as the market stabilizes.

Townsquare continued its capital management strategy, repurchasing $14 million of its debt and $22 million of equity in the first half of the year. The company's efforts were acknowledged with an upgrade in the S&P Global rating of its Senior Secured Notes from B to B+.

The board of directors also declared a quarterly cash dividend of $0.1975 per share, payable on November 1, 2024, to shareholders of record as of October 15, 2024.

Looking ahead to the third quarter, Townsquare expects net revenue between $114 million and $116 million and Adjusted EBITDA between $25 million and $27 million. For the full year, the company anticipates net revenue of $440 million to $455 million and Adjusted EBITDA of $100 million to $105 million, reflecting cautious optimism about returning to growth in the latter half of the year.