That was the benchmark for radio when things started to normalize from the pandemic. The goal for radio was to get back to revenue numbers when things appeared to be humming, right before COVID-19 hit. Townsquare CEO Bill Wilson says the 2019 numbers are no longer relevant because his company shot through them in the first quarter. Here are the numbers.
Net revenue increased 12.9%, or $11.5 million, in the first quarter compared to Q1 2021. Net income jumped by nearly $9 million. Total digital net revenue increased 15.9%. Digital now makes up 51% of Townsquare’s total net revenue. Broadcast advertising net revenue increased $3.4 million or 7.7%.
Comparing Q1 2022 revenue to 2019 Q1 revenue, Townsquare was up 7% and up 13% excluding political.
Townsquare’s monthly subscription digital marketing solutions segment increased net revenue by $2.9 million or 15%. 1,050 new subscribers to the Townsquare digital program were added in the quarter. The company now provides monthly digital services to 27,850 subscribers.
CEO Bill Wilson clearly feels like Townsquare is not getting enough credit for being more of a digital company. He said investors still consider it a radio company. “Radio is only a component of our business. Radio is not the primary growth driver. It’s a mature cash cow business.”
Wilson said digital threw off 55% of the company’s profit in Q1.
He also believes there’s more digital upside to the 35 stations and 9 markets the company is purchasing from Cherry Creek. Through his research Wilson noted that only 15% of the revenue comes from digital from the Cherry Creek stations and he expects that to increase to 50% at some point when Townsquare takes control.
Looking ahead to the second quarter of 2022, Townsquare’s net revenue is expected to be between $117 million and $121 million. For the full year 2022, net revenue guidance is expected to come in between $460 and $475 million.
