Townsquare Media, Inc. announced today selected results for the second quarter ended June 30, 2020.
"As expected, our second quarter financial results were significantly impacted by the COVID-19 pandemic, with net revenue and Adjusted EBITDA declining 34.5% and 93.1%, respectively, as compared to the prior year. However, we experienced sequential improvement in our Advertising net revenue throughout the quarter, which together with our Live Events net revenue has experienced the brunt of the negative business impact. By the end of the second quarter, Advertising net revenue had materially improved, from -42.1% in April to -29.6% in June, and continued to show improvement through July and early August. In addition, in Q2 2020 our digital revenue exceeded 48% of our total net revenue, powered by our digital solutions, which have proven more resilient than our broadcast solutions during the pandemic, and in particular Townsquare Interactive, which is our digital marketing solutions subscription business," commented Bill Wilson, Chief Executive Officer of Townsquare.
Wilson added, "Townsquare Interactive's growth continued in the second quarter, with net revenue increasing 10.5%, at an Adjusted Operating Income margin in excess of 30%, and approximately 900 net subscriber additions, marking the 9th consecutive quarter of 850 (or more) net subscriber additions.
Wilson concluded, "One of the things we take great pride in is that even with all of the challenges and unknowns during this pandemic, we have not had to alter our core strategy. Instead, the pandemic placed a spotlight on the need to double down on executing our existing long term strategy.
Second Quarter Highlights As compared to the second quarter of 2019:
- Net revenue decreased 34.5%, and 35.0% excluding political revenue
- Net loss increased $36.8 million to a net loss of $26.8 million
- Adjusted EBITDA decreased 93.1% to $2.1 million
- Townsquare Interactive net revenue increased 10.5%
- Advertising net revenue decreased 37.5% and 38.2% excluding political revenue
- Live Events net revenue decreased 99.5%
- Townsquare Interactive added approximately 900 net subscribers, ending the quarter with approximately 20,750 subscribers
- Pro forma net revenue decreased 18.7%
- Pro forma net loss increased $91.4 million to a net loss of $86.4 million
- Pro forma Adjusted EBITDA decreased 64.1% to $17.6 million
- Net revenue decreased 19.0% and 19.8% excluding political revenue
- Net loss increased $91.8 million to a net loss of $86.4 million
- Adjusted EBITDA decreased 64.4%
- Townsquare Interactive net revenue increased 13.3%
- Advertising net revenue decreased 20.6% and 21.5% excluding political revenue
- Live Events net revenue decreased 79.1%
- Pro forma Live Events net revenue decreased 77.6%