The medium- and small-market operator reported an increase in net revenue of 6.6% or $5.8 million to $94.2 million in the first quarter of 2018. Townsquare executives on the Tuesday morning earnings call were very pleased with the results, including Co-CEO Bill Wilson. “Our first quarter growth in this segment was driven by continued strength across our local broadcast and digital product offerings, which culminated in our 17th consecutive quarter of positive, organic revenue growth.”
Townsquare did purchase two stations since its last earnings call and it was unclear if the revenue increase included the revenue from those two stations, or if the increase is same-station revenue. Later in the day the company told Radio Ink the only acquisition that impacted Q1 was the Pittsfield/Berkshires acquisition that closed 9/30/17. Townsquare did not disclose same-station revenue, however they say the results would have been similar to reported results.
Net revenue from Townsquare’s Local Marketing Solutions, which includes radio, increased 5.9%, to $80.6 million, excluding political revenue. Townsquare actually had an increase in political revenue in the quarter, jumping from $450,000 in 2017 to $700,000 this year.
Overall net revenue for the quarter increased $5.8 million, or 6.6%, to $94.2 million, as compared to $88.4 million in the same period last year. Townsquare entertainment division net revenue increased $1.3 million, or 10.8%, to $13.7 million, largely due to the timing of the Miami County Fair which fell partly in Q1 and partly in Q2.
Townsquare lost $26.6 million in the quarter, compared to $3.0 million in Q1 2017. That increase was blamed on a $38 million impairment charge recorded in the quarter which was partially offset by an increase in benefit from income tax of $12.8 million.
