Townsquare Media announced that its Board of Directors has authorized a new $50 million stock repurchase plan. The plan, which replaces the company’s previous repurchase plan, allows Townsquare to buy back its Class A common stock over the next three years.
The company has previously repurchased approximately $40.5 million worth of stock under its prior plan. Townsquare may execute repurchases on the open market or through other methods, subject to market conditions and regulatory requirements.
The new plan enables repurchases to be conducted through open market purchases at prevailing prices or per regulatory guidelines. The timing, number, and dollar amount of shares repurchased will be determined by company management and depend on factors such as stock price, market conditions, legal requirements, and other financial considerations.
In April, Townsquare repurchased $14 million in stock from MSG National Properties and nearly 3 million stock options from its board and executives, totaling an additional $10.8 million.
The “digital-first” broadcaster is coming off a rebound in Q3, highlighted by positive net income and improved performance. Net income reached $11.3 million, a significant turnaround from the $36.5 million net loss in the same period last year.
At the end of the quarter, Townsquare reported a cash balance of $22 million.
Digital revenue now accounts for over 52% of Townsquare’s year-to-date revenue, with digital advertising up 4.7%. Townsquare Interactive, the subscription-based digital marketing arm, grew 3% sequentially despite a 5.8% year-over-year decline. Broadcast revenue rose 0.3% year-over-year but fell 5.3% when excluding political contributions.
