Live events and national digital revenue are not working out the way Townsquare executives hoped. On the other hand, radio is. The company announced it was conducting a review of its entertainment division due to another poor revenue quarter, which could result in a reorganization of that division. That would also mean a total focus on growing the company’s core revenue, which comes from radio.
Townsquare’s thirdquarter net revenue decreased $1.6 million (1.0%), to $164.1 million, compared to $165.8 million in 2016.
Excluding political,net revenue decreased $0.5million, or 0.3%, to $163.9
millionand Local Marketing Solutions net reveue increased $2.6 million, or 3.0%.
Local Marketing Solutions (radio)net revenue increased $1.5 million, or 1.7% , to $90.5 million. Company executives repeatedly touted how strong the radio division performed in the quarter and how the entertainment division was not meeting expectations. Radio has now delivered the company 15 consecutive quarters of organic growth and the company says its core business is healthy and on plan to hit 2017 revenue targets. Townsquare owns over 300 radio stations in small and medium markets throughout the country.
Entertainment net revenue decreased $3.1 million, or 4.1%, to $73.6 million, due to revenue declines in live events and national digital.
The reasons for the decline in entertainment were many. The inflatable 5K series is no longer profitable for the company, national digital revenue was down, and costs for carnivals and fairs increased for two reasons. The number of visas allowed for international workers decreased to a level that forced the company to find more expensive labor. And, transportation costs following storms in Houston and Florida shot up.
A review of the entertainment business is expected to last until early 2018.
The number of visas allowed for international workers decreased to a level that forced the company to find more expensive labor.
Putting that in writing just shows how much they refuse to pay Americans a decent wage