Townsquare CEO Bill Wilson could not have sounded more optimistic about his company’s Q2 financial results and outlook for the balance of 2021. And what has become the norm for Townsquare, digital revenue is leading the way.
Townsquare reported a net revenue increase in Q2 of 44.9% when compared to 2020. One year ago Townsquare’s revenue declined 34.5% from 2019. When compared to 2019, Townsquare is at 95% of its revenue total from that year and Wilson said it’s nearly a full recovery when events are backed out.
Digital is driving Townsquare’s growth. In the first 6 months of 2021 digital revenue made up 47% of Townsquare’s overall revenue.
Townsquare Interactive, which launched in 2012, and helps small and medium businesses with their digital strategy, added a record 1,350 net subscribers in Q2. Townsquare Interactive now boasts just under 25,000 subscribers who pay the company $300 per month for Townsquare’s digital expertise. 57% of those 25,000 businesses are outside markets Townsquare has radio stations.
Wilson says Townsquare Interactive generates $76 million per year today and expects that to grow to $100 million in the next 2-3 years. He also believes that there is “incredible upside” with millions of other businesses who’ve yet to be called on. Townsquare is adding a west coast location to handle the growth which will compliment its Charlotte location which now has 600 employees. Townsquare Interactive has a 31% profit margin. In Q2 Townsquare Interactive revenue increased $3.3 million, or 19.7%, to $20.2 million.
Townsquare Ignite (programmatic) and Townsquare Amped (websites and mobile apps) are also having a strong revenue year.
Advertising net revenue increased $28.8 million, or 50.4%, to $85.9 million, and Live Events net revenue increased $1.2 million to $1.2 million, each as compared to the same period last year. Excluding political revenue, net revenue increased $33.4 million, or 45.7%, to $106.6 million, and Advertising net revenue increased $28.9 million, or 51.4%, to $85.2 million.
The company expects to ramp up more live events as 2021 moves along and get back to a normal schedule of live events in 2022. Approximately 11 live events have been held so far this year.
Wilson expects Q3 revenue to be up between 11% and 14% and very close to its 2019 revenue numbers. “We are on the verge of a full revenue recovery,” Wilson said during his Q2 earnings call Tuesday morning.
Townsquare has $25 million in cash on its balance sheet with total net leverage at 5.8X.