Townsquare Media Reports 2Q Net Revenue Increase 13.6%

Townsquare Media, Inc. announced today its financial results for the second quarter ended June 30, 2022.

"I am proud to share that the Townsquare Team delivered another quarter of strong revenue and profit growth, and in doing so, we achieved all-time record highs for both net revenue and Adjusted EBITDA. Our performance clearly demonstrates the strength and differentiation of our digital businesses and our legacy broadcast business. Townsquare's second quarter net revenue increased year-over-year by +14%, exceeding our guidance range, and Adjusted EBITDA increased +7% year-over-year, meeting our guidance range. In addition, our digital revenue growth accelerated from the first quarter (Q1 +16% year-over-year), with second quarter total digital revenue increasing +21% year-over-year. Our strong top-line growth, margin profile, and cash generation characteristics have contributed to the reduction of our net leverage, now at a historical low of 4.65x as of June 30th, including the repurchase and retirement of $19 million of our Senior Secured Notes at or below par in Q2," commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. 

Bill Wilson

"We are also pleased to announce that we are raising our FY 2022 guidance following the close of the Cherry Creek acquisition on June 17th. Our updated full year guidance reflects the ongoing momentum of our business and the strength of our performance to date, fueled by our differentiated digital platform. As a Digital First Local Media Company focused principally on markets outside of the Top 50 in the United States, we have a resilient digital growth engine supported by subscription digital marketing solutions, with a large addressable market and limited competition. As we move forward, we expect double-digit digital net revenue growth to continue at strong margins, reaching our digital revenue target of at least $275 million in 2024. With half of our total revenue and profit coming from digital today, it is our belief that over time as digital continues to meaningfully grow, Townsquare should and will be afforded a sum-of the-parts valuation that our digital assets deserve."

➤Second Quarter Highlights As compared to the second quarter of 2021:

• Net revenue increased 13.6%
• Net income decreased $5.2 million
• Adjusted EBITDA increased 6.8%
• Total Digital net revenue increased 20.7%Subscription Digital Marketing Solutions ("Townsquare Interactive") net revenue increased 13.7%
• Digital Advertising net revenue increased 25.4%
• Total Digital Adjusted Operating Income increased 11.0%Subscription Digital Marketing Solutions Adjusted Operating Income increased 9.8%
• Digital Advertising Adjusted Operating Income increased 11.8%
• Broadcast Advertising net revenue increased 1.0%
• Diluted income per share was $0.24, and Adjusted Net Income per diluted share was $0.71
• Townsquare Interactive added approximately 1,150 net subscribers
• Repurchased aggregate $19.2 million of our 2026 Secured Senior Notes at or below par
• Completed the acquisition of Cherry Creek Broadcasting LLC ("Cherry Creek") for $18.4 million, net of closing adjustments

➤Year to Date Highlights As compared to the six months ended June 30, 2021:

• Net revenue increased 13.3%
• Net income increased $3.7 million
• Adjusted EBITDA increased 8.0%
• Total Digital net revenue increased 18.4%Subscription Digital Marketing Solutions net revenue increased 14.3%
• Digital Advertising net revenue increased 21.4%
• Total Digital Adjusted Operating Income increased 10.9%Subscription Digital Marketing Solutions Adjusted Operating Income increased 8.6%
• Digital Advertising Adjusted Operating Income increased 12.4%
• Broadcast Advertising net revenue increased 4.0%
• Townsquare Interactive added approximately 2,200 net subscribers