Townsquare’s 2019 pro-forma net revenue increased 4.7% over 2018. Excluding political revenue, which declined $6.9 million from $10 million in 2018 to $3.1 million in 2019, pro forma net revenue increased 6.6%.
Political came in at $1.7 million in the fourth quarter and $3.1 million for the full year and the company reports that Q1 2020 political revenue is off to a good start and they expect see PAC spending heat up.
CEO Bill Wilson said Q4 2019 was the 8th consecutive quarter of net growth for Townsquare and the company is now at its lowest leverage ever (4.65X). Profit margins increased all across the board for Townsquare as well, according to the CEO.
In Q4 net revenue increased 2.9% and 6.9% excluding political compared to the fourth quarter of 2018.
Wilson also said that while radio is in the Townsquare DNA, it is no longer a traditional radio company. “In 2019 Townsquare generated over $150 million of digital revenue from our digital products and solutions, reflecting a growth rate of approximately 27% and contributing approximately 35% of total net revenue. In 2019, over 70% of our broadcast clients bought more than just radio. Our unique and proprietary data insights and sales tools are not typically available to much of our local media competition. And this truly sets our local account executives and marketing consultants apart in our local markets, further helping to establish Townsquare as a thought leader and top advertising and marketing solutions provider, not just a media vendor.”
In 2019, Townsquare Ignite grew to nearly $50 million in revenue. Townsquare Ignite is a proprietary in-house digital programmatic tech platform. Wilson expects that division to generate $100 million of annual revenue within two to four years. The operating margin of that business line is about 30%.
In 2019, Townsquare Interactive added roughly 3,650 net subscribers, ending the year with approximately 19,000 subscribers. In 2018, Townsquare Interactive added 2,950 net adds and in 2017 added 1,700. In the first quarter of 2020, even with the current situation with the coronavirus, Townsquare still expects to add approximately 900 subscribers to Townsquare Interactive.
At the end of 2019 Townsquare’s total debt was $560.5 million. Total cash balance was $84.7 million.
