Another positive quarterly report from a public radio company. Townsquare CEO Bill Wilson says he’s feeling pretty good about how the company’s performing. With more of a focus on local, a highly lucrative digital division and strong political ad revenue, Townsquare had an excellent fourth quarter in 2018 and it appears 2019 is looking strong as well.
Townsquare reported a pro-forma revenue increase of 9.7% in the fourth quarter of 2018. That increase was still 5.2% when political ad revenue is backed out and jumps to 12% if you don’t count live events, which has been a drag on the company.
Political ad revenue came in better than expected at $10 million in 2018. Political in the fourth quarter of 2018 was $5.7 million, compared to $1.2 million in 2017.
Overall, 2018 digital revenue for the company was over $120 million, that’s nearly 30% of the company’s total net revenue.
Providing digital solutions for local clients continues to be big business for Townsquare. Townsquare Interactive added 2,950 net subscribers in 2018 (compared to 1,700 in 2017) ending the year with approximately 15,350 subscribers and nearly $50 million in net revenue.The company expects that division to net revenue of abot $100 million in the next 3-5 years.
Wilson said local revenue improved as the year went on in 2018, with the second half stronger than the first. The Townsquare outlook for 2019 is up 3-5%.
