We got our first look at Q3 earnings Tuesday morning and Townsquare leads off quite nicely for the radio industry. The company is firing on all cylinders. Ad revenue increased, digital revenue was up, and net leverage is down.
Townsquare’s total net revenue, excluding political advertising, grew 7.9% for the quarter, 6.2% including political comps. Thirty-five percent of Townsquare’s revenue now comes from digital, with Townsquare Interactive’s net revenue increasing 26% in the quarter. Advertising net revenue increased 5.2%; 7.3% excluding political revenue.
With $560.5 million in debt and $74.2 million in cash, Townsquare’s net leverage now stands at 4.7%, the lowest in the company’s history.
CEO Bill Wilson said those third-quarter results exceeded expectations and the company is raising its full-year revenue guidance to between $428 million and $430 million, which would result in a 4% increase in revenue over 2018.
Townsquare expects to see about $3.5 million in political advertising this year compared to $10 million in 2018.
If there was one weak spot it was live events, which saw a net revenue decrease of over 27%.
