Townsquare Media’s digital-first mentality continues to pay off in its “reset year,” according to CEO Bill Wilson as the company reports its Q3 earnings. The company’s total revenue for the third quarter decreased by 4.6% year-over-year to $115.1 million. Excluding political revenue, net revenue declined by 3.8%. EBITDA also fell 12.1% to $27.2 million.
Despite these challenges, digital remains a key growth driver for Townsquare, accounting for 52% of its year-to-date revenue and 57% of profit. Townsquare Ignite saw a 5.5% increase in revenue year-over-year, attributed to its focus on local advertisers and digital solutions.
On an adjusted basis, Townsquare’s net income only slightly decreased to $8.25 million from $8.3 million, which could be viewed positively given the comparison with last year’s political advertising revenue. Despite the downturns, Wilson pointed out Townsquare’s strong cash position, noting the repurchase and retirement of approximately $14 million of Unsecured Senior Notes and the repurchase of around 94,000 Class A shares in the third quarter.
Looking forward, Q4 net revenue is expected to range between $110.6 million and $112.6 million, slightly below analyst consensus estimates of $116.76 million. Adjusted EBITDA is anticipated to be between $24.8 million and $25.8 million. In 2024, the company anticipates a rebound in political ad revenue, estimating it to be between $14 to $16 million, a significant increase from less than $3 million in 2023.
Wilson concluded that the performance in the first nine months of 2023 validates Townsquare’s digital-first local media strategy and its focus on local markets outside the top 50 US markets.
