And the company continues to lead the way on the digital front. In Q2, Townsquare’s net revenue increased 5.3%, to $113.1 million. Excluding political revenue, which declined approximately $800 thousand from 2018, net revenue increased 6.2%. Townsquare Interactive net revenue increased 30.8% in the second quarter. More impressively, Townsquare Interactive’s Q2 operating margins expanded to 32.8%, as compared to 29.2% in 2018.
CEO Bill Wilson said he’s extremely proud of his team. “As a result, 2019 is turning out to be a transformative year for Townsquare as we continue to outperform our local competitors from a broadcast perspective while at the same time driving very strong digital solutions growth, enabling digital overall to be a much greater percentage of overall company revenue. Revenue from our digital advertising and marketing solutions now contributes more than one-third of our total revenue, putting us on track in 2019 to deliver the strongest EBITDA growth for a non-political year in Townsquare’s history.”
Wilson said, as he has in previous earnings calls, that the primary revenue growth driver in Townsquare’s advertising segment is and we expect will continue to be Townsquare’s Ignite digital solution. “We expect Townsquare Ignite, our proprietary, in-house digital programmatic business, will approach $50 million of revenue in 2019 and $100 million of revenue within three to five years.”
Wilson also said Townsquare Interactive added approximately 1,100 net subscribers in the second quarter, ending the quarter with approximately 17,300 subscribers. “This drove second quarter net revenue to increase ~31% and Adjusted Operating Income, which I refer to as profit on this call, to increase a very strong 46.8% over the prior year. Townsquare Interactive operated at a healthy 32.8% profit margin in the second quarter, and we anticipate that these margins will remain relatively stable going forward (at approximately 30%) as we balance investment and growth. In the first half of 2019, Townsquare Interactive has added nearly 2,000 net subscribers, and is well on track to surpass our initial goal of 3,000 net adds in 2019.”
Townsquare expects to bring in a total of $62 million this year from Townsquare Interactive and $100 million within three to five years. Half of Townsquare Interactive clients are from markets in which the company does not own radio stations. For $300 per month Townsquare offers local advertisers a complete digital package to help grow their business.
Townsquare CEO Bill Wilson will be in the cover of the August 12 issue of Radio Ink Magazine