Local was strong in Q4 of 2017 for the small- and medium-market broadcaster, however tough political comps, a decline in the event business, and a drop in national digital revenue all helped push the company down in Q4. Including all divisions, Townsquare’s Q4 revenue was off by 3.7 percent ($4.4 million) to $114.4 million.
Local Marketing Solutions net revenue (which includes radio) increased $400,000, or 0.4%, to $91.6 million. Entertainment net revenue decreased $4.8 million, or 17.4%, to $22.6 million. The decline in entertainment was blamed on a drop in live events and in national digital business.
Excluding political revenue, overall net revenue decreased $300,000, or 0.2%, to $113.1 million and Local Marketing Solutions net revenue increased $4.5 million, or 5.2%, to $90.5 million.
The company gave some specifics regarding the Entertainment division decline, which was off 8.6% — $15 million — in 2017. Townsquare’s Inflatable 5K series is losing its luster and is not performing as well as it had been when obstacle races were newer. That has become a saturated market. Also, there was a decline in major events in October and November and part of that blame was placed on the shooting at a Country concert in Las Vegas last year. In addition, several other events Townsquare was producing have been canceled. More declines are expected in the Entertainment business in 2018. The company has reduced the number of events it will be producing from 500 in 2017 to 350 in 2018.