Revenue Drops 4.6 Percent At Townsquare

• Net revenue excluding political revenue flat year-over-year, with digital representing 52% of total net revenue.
• Adjusted EBITDA decreased by 12% year-over-year, while digital advertising net revenue increased by 5.5%.
• Strong cash generation allowed for significant debt repurchase and share buybacks.
• Guidance for Q4 2023 projects net revenue between $110.6 million and $112.6 million, and Adjusted EBITDA between $24.8 million and $25.8 million.

On November 9, 2023, Townsquare Media Inc released its financial results for the third quarter ended September 30, 2023. The company reported a net revenue decrease of 4.6% to $115.1 million compared to the same period in 2022. Excluding political revenue, the net revenue decreased by 3.8%. The digital segment of the business, however, showed resilience with a 5.5% increase in digital advertising net revenue. Despite the overall decline in net revenue, digital now accounts for 52% of Townsquare's total net revenue and 57% of its total Adjusted Operating Income.

Bill Wilson

Financial Performance Overview

Adjusted EBITDA for the quarter decreased by 12.1% to $27.2 million, and net income saw a significant decrease of $39.3 million. The diluted loss per share was $2.27, while Adjusted Net Income per diluted share was $0.46. The company also highlighted a strong cash generation with $39 million of cash flow from operations in the first nine months of 2023, an increase of $7 million compared to the prior year.

Bill Wilson, CEO of Townsquare Media Inc, expressed satisfaction with the company's ability to repurchase and retire approximately $14 million of its Unsecured Senior Notes at a discount during the third quarter. The company also repurchased approximately 94,000 Class A shares in the third quarter, bringing the year-to-date total to 1.7 million shares. Townsquare ended the quarter with a strong cash balance of $38 million and net leverage of 4.49x.