Townsquare 3Q Net Income Drops Almost Ten Percent

Townsquare Media, Inc. announced today financial results for the third quarter ended September 30, 2017.

"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 Bill Wilson, Co-Chief Executive Officer of Townsquare.

"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," commented Dhruv Prasad, Co-Chief Executive Officer of Townsquare. "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. "The promotion of Bill and Dhruv to co-CEO's was a well-planned transition, that allows for continuity and stability in our Company," commented Steven Price.  "The Board and I have great confidence in the continuing management team, and I look forward to continuing to shape our strategic direction in my new role."

Third Quarter Highlights As compared to the third quarter of 2016:

• Local Marketing Solutions net revenue increased 1.7%, and 3.0% excluding political revenue
• Entertainment net revenue decreased 4.1%
• Net revenue decreased 1.0%, and 0.3% excluding political revenue
• Net income decreased 9.9%
• Adjusted EBITDA decreased 11.1%
• Diluted net income per share of $0.51

Year to Date Highlights As compared to the first nine months of 2016:

• Local Marketing Solutions net revenue increased 2.4%, and 3.5% excluding political revenue
• Entertainment net revenue decreased 7.0%
• Net revenue decreased 1.0%, and 0.4% excluding political revenue
• Net income decreased 16.1%
• Adjusted EBITDA decreased 8.3%
• Repaid $6.7 million of long-term debt

Townsquare has two reportable segments, Local Marketing Solutions, which provides broadcast and digital products and solutions to advertisers and businesses within local markets, and Entertainment, which provides live event experiences and music and lifestyle content directly to consumers, and promotion, advertising and product activations to local and national advertiser.