Townsquare Media continues to become more “digital first” by the quarter. In Q1 2024, digital revenue came to represent 53% of the company’s total net revenue in what leadership described as a challenging yet strategically promising first quarter.
Townsquare’s Q1 earnings report shows net revenue decreased slightly by 3.4% to $99.63 million, still surpassing the analysts’ expectations. However, the company reported a net income of $1.55 million, a positive swing from the previous year’s loss.
Despite a dip in political advertising and a significant drop in subscription digital marketing revenue, the company managed to meet its own financial guidance, with operational income soaring by 56.7%. CEO Bill Wilson emphasized the strength in their digital and interactive segments, noting a 1.3% growth in digital advertising and robust subscriber increases in the Townsquare Interactive segment.
During the Townsquare Media Q1 2024 earnings call, CEO Bill Wilson highlighted that the company’s radio stations had gained market share, outperforming competitors in the first three months. The firm also reported strong cash flow generation and enhanced financial flexibility, vital for fueling its digital growth ambitions.
Wilson addressed recent heavy stock buybacks, both from MSG Properties and Townsquare management, adding, “We ended the quarter with a strong cash balance of $57 million, and following the April equity transactions, maintained a cash balance of $28 million at the end of April, retaining financial flexibility moving forward.”
Looking ahead, Wilson expressed caution about the second quarter, particularly due to expected declines in digital revenue stemming from changes in Meta’s Authorized Sales Partner program, yet he remains optimistic about its financial trajectory for 2024.
