Digital ‘Growth Engine’ Powers Townsquare’s Narrowing Losses

As to be expected, digital growth and political advertising were the main driving forces behind Townsquare Media’s final quarter of 2024, which saw a 2.6% year-over-year revenue increase at the “Digital First Local Media Company.”

Townsquare posted net revenue of $450.98 million for the year, a slight decline from $454.23 million in 2023. However, cost control and debt management contributed to an improvement in profitability, with a net loss of $10.93 million for 2024, compared to a loss of $43.02 million the previous year.

In the fourth quarter, net revenue increased to $117.81 million from $114.78 million in Q4 2023.

Townsquare’s digital revenue accounted for 52% of its total Q4 revenue, with Digital Advertising up 15.5% and Townsquare Interactive returning to growth with a 1.9% increase. CEO Bill Wilson said, “Digital is and will continue to be Townsquare’s growth engine. We believe Townsquare’s ability to drive profitable, sustainable digital growth is a key differentiator for our company.”

On the broadcast side, the company’s Broadcast Advertising revenue declined 4.1% in Q4 and dropped 13.3% when excluding political ads. Wilson acknowledged the shift, stating, “Our Broadcast Advertising net revenue declined in-line with our expectations for 2024, which aligns with our view that broadcast is a mature cash cow business that will continue to face headwinds going forward, as businesses shift from traditional advertising to digital advertising.”

Townsquare generated $49 million in cash flow from operations in 2024, allowing the company to retire $36 million of its Senior Secured Notes and repurchase $24 million in common stock. The company also refinanced its debt, securing a $490 million credit agreement.

“We also ended the year with a strong cash balance of $33 million and net leverage of 4.33x, which is an improvement from prior year levels,” said Wilson. “As we did in 2024, we are confident in the Townsquare team’s ability to continue to deliver attractive, current returns to our shareholders while also focusing on the financial health of the company.”

For the full year 2025, Townsquare projects revenue between $435 million and $455 million.

Wilson expressed confidence in the company’s direction, stating, “We could not be more pleased to share that given our strong cash position, we were able to repurchase and retire approximately $36 million of our Senior Secured Notes during the year. In addition, we repurchased $24 million of our common stock, and paid a high-yielding dividend while also investing in our business, particularly our digital growth engine.”