Townsquare Media Reports Revenue Fell Short

Townsquare Media Wednesday released its financial results for the second quarter of 2024. Here are the key takeaways:

Earnings and Revenue: Earnings per share (EPS) came in at 14 cents, falling short of the analyst estimate of 35 cents per share. However, the company managed to beat revenue expectations, reporting $118.23 million in revenue, slightly better than the estimated $117.90 million1.

Segment Performance:

• Townsquare Interactive: This segment saw sequential revenue growth in each month of Q2. Positive subscriber trends contributed significantly to this improvement.
• Digital Advertising: Despite challenges, digital advertising net revenue continued to grow year-over-year, albeit modestly.
• Broadcast Advertising: Net revenue from broadcast advertising remained relatively flat compared to the prior year, showing improvement from Q1 declines.

Overall, digital accounted for 52% of Townsquare’s net revenue in the first half of 2024.

Financial Flexibility: The company maintains strong cash flow, allowing it to invest in its digital growth initiatives. Debt and share buybacks demonstrate Townsquare’s commitment to financial flexibility.

Bill Wilson

“I am pleased to share that Townsquare’s momentum is building as demonstrated by another quarter of sequential net revenue improvement, primarily due to our local focus and our unique and differentiated digital platform. Second quarter net revenue decreased -2.5% year-over-year and Adjusted EBITDA decreased -8.3% year-over-year, both meeting guidance and reflecting a sequential improvement from first quarter declines,  commented Bill Wilson, Chief Executive Officer of Townsquare Media, Inc.

"In the second quarter, the Company reported a net loss of $48.9 million, in large part due to non-cash impairment charges. Our Q2 performance was driven by stabilizing and/or improving trends across segments: Townsquare Interactive returned to sequential revenue growth in each month of the quarter, as a result of positive subscriber trends that have improved dramatically compared to previous quarters; Digital Advertising net revenue growth continued at +1% year-over-year; and Broadcast Advertising net revenue was approximately flat as compared to the prior year, an improvement from first quarter declines. In total, Digital represented 52% of Townsquare’s net revenue in the first six months of the year,” added Wilson.