Townsquare Media Reports Strong Financials

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

"I am proud to report another record setting quarter of results that clearly demonstrate the undeniable success and differentiation of Townsquare's transformation into a Digital First Local Media company. The Townsquare Team reached all-time Q3 highs with net revenue growth of +8% year-over-year, and Adjusted EBITDA growth of +6% year-over-year, meeting our Q3 guidance. In addition, net leverage declined to an all-time low of 4.54x as we continue to make progress towards our 4x net leverage target," commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. 

Bill Wilson

"Our growth engine has been and will continue to be our digital solutions, which were the primary driver of our third quarter growth, accounting for half of Townsquare's total revenue and total profit. Total digital revenue increased +17% year-over-year in the third quarter, and trailing twelve-month digital revenue grew to $225 million. As a uniquely positioned Digital First Local Media Company focused principally on markets outside of the Top 50 in the United States, Townsquare has a resilient digital growth engine supported by both a recurring subscription digital marketing solutions business, with a large addressable market and limited competition, and a highly differentiated digital advertising technology platform."

Third Quarter Highlights:  As compared to the third quarter of 2021:

• Net revenue increased 8.4%
• Net income decreased $10.1 million
• Adjusted EBITDA increased 6.0%
• Total Digital net revenue increased 16.6%
• Subscription Digital Marketing Solutions ("Townsquare Interactive") net revenue increased 9.7%
• Digital Advertising net revenue increased 21.3%
• Total Digital Adjusted Operating Income increased 7.1%
• Subscription Digital Marketing Solutions Adjusted Operating Income increased 4.3%
• Digital Advertising Adjusted Operating Income increased 8.7%
• Broadcast Advertising net revenue increased 3.4%
• Diluted income per share was $0.13, and Adjusted Net Income per diluted share was $0.47

Year to Date Highlights: As compared to the nine months ended September 30, 2021:

• Net revenue increased 11.5%
• Net income decreased $6.4 million
• Adjusted EBITDA increased 7.3%
• Total Digital net revenue increased 17.8%
• Subscription Digital Marketing Solutions net revenue increased 12.7%
• Digital Advertising net revenue increased 21.3%
• Total Digital Adjusted Operating Income increased 9.5%
• Subscription Digital Marketing Solutions Adjusted Operating Income increased 7.2%
• Digital Advertising Adjusted Operating Income increased 11.0%
• Broadcast Advertising net revenue increased 3.8%
• 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