In Q3 2023, Townsquare Media CEO Bill Wilson called it a “reset year” for the digital-first broadcaster. The rebuild appears to have garnered the desired effect, posting a significant recovery in Q3 2024, marked by positive net income and improved operating performance.
Townsquare reported net revenue of $115.3 million in Q3 2024, a slight increase from $115.1 million in Q3 2023 – though it decreased by 2.5% when excluding political revenue. The real reversal is a net income of $11.3 million, a marked turnaround from a net loss of $36.5 million during the same period last year due to a reduction in non-cash impairment charges.
Townsquare CEO Bill Wilson expressed satisfaction with the results, stating it was, “Driven by sequential improvement across each of our three business segments, due to our local focus and our unique and differentiated digital platform, as well as the benefit from political revenue.”
As expected, digital revenue represents over 52% of Townsquare’s total net revenue year-to-date, showing a 1.1% year-over-year increase. Digital advertising revenue rose by 4.7%, while Townsquare Interactive, the company’s subscription-based digital marketing division, saw a sequential increase of 3% despite a year-over-year decline of 5.8%.
Broadcast revenue saw a slight increase of 0.3% year-over-year, though it declined by 5.3% when excluding political.
Townsquare CEO Bill Wilson added that the company has “executed and delivered on what we said we would do, while simultaneously building value for our shareholders through dividend payments, debt reduction, and share repurchases.” Over the first nine months of 2024, Townsquare repurchased and retired $25 million of bonds, reaching $36 million by October. The company also repurchased $24 million in equity, including 1.5 million shares from Madison Square Garden.
At the end of the quarter, Townsquare reported a cash balance of $22 million.
