Townsquare Media Reports New High For Net Revenue

Townsquare Media, Inc. announced today its financial results for the fourth quarter and year ended December 31, 2022.

"I am proud to report that Townsquare's transformation into a Digital First Local Media Company allowed us to deliver record results in 2022 despite a progressively challenging economic landscape. In 2022, we drove net revenue and Adjusted EBITDA to new highs with strong net revenue growth of +11% year-over-year and Adjusted EBITDA growth of +8% year-over-year. In addition, we generated significant cash flow from operations of $50 million, ending the year with over $43 million of cash, and net leverage declined to an all-time low of 4.29x," commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc. 

Bill Wilson

"2022 was a significant inflection point for our Company. It marked the first year where radio no longer comprised the majority of our revenue and profit, further separating Townsquare from our local media peers, and placing a spotlight on our world-class team and our unique and differentiated strategy, assets, platforms and solutions. Our growth engine has been and will continue to be our digital solutions, which were the primary driver of our 2022 growth. Total digital revenue increased +16% year-over-year (and +12% in the fourth quarter) to $231 million, and total digital Adjusted Operating Income increased +12% year-over-year to $69 million, representing a 30% profit margin. We believe Townsquare's ability to drive profitable, sustainable digital growth is a key differentiator for our Company, and we reaffirm our expectation that our digital revenue will grow to at least $275 million by 2024."

Wilson continued, "We are uniquely positioned as a Digital First Local Media Company focused principally on markets outside of the Top 50 in the United States, with 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. We believe that our business model and strategy position us to weather the current economic environment better than most." 

Fourth Quarter Highlights..As compared to the fourth quarter of 2021:

• Net revenue increased 8.8%
• Net income increased $2.0 million
• Adjusted EBITDA increased 11.0%
• Total Digital net revenue increased 11.9%Subscription Digital Marketing Solutions ("Townsquare Interactive") net revenue increased 4.4%
• Digital Advertising net revenue increased 16.9%
• Total Digital Adjusted Operating Income increased 20.1%Subscription Digital Marketing Solutions Adjusted Operating Income increased 6.4%
• Digital Advertising Adjusted Operating Income increased 28.9%
• Broadcast Advertising net revenue increased 4.0%
• Diluted income per share was $0.20, and Adjusted Net Income per diluted share was $0.66

Full Year Highlight..As compared to the year ended December 31, 2021:

• Net revenue increased 10.8%
• Net income decreased $4.4 million
• Adjusted EBITDA increased 8.2%
• Total Digital net revenue increased 16.2%Subscription Digital Marketing Solutions net revenue increased 10.5%
• Digital Advertising net revenue increased 20.2%
• Total Digital Adjusted Operating Income increased 12.2%Subscription Digital Marketing Solutions Adjusted Operating Income increased 7.0%
• Digital Advertising Adjusted Operating Income increased 15.7%
• 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 $18.5 million, net of closing adjustments

The Company also announced today that its Board of Directors approved the initiation of a quarterly cash dividend of $0.1875 per share. The dividend will be payable on May 1, 2023 to shareholders of record as of the close of business on March 27, 2023.