Revenue, Income Rise For Townsquare Media In First Quarter 2022

Q1 Increases

TOWNSQUARE MEDIA, INC. saw net revenue for first quarter grow 12.9% year-over-year to $177.5 million, with net income up from a loss of $6.1 million to a gain of $2.7 million (11 cents/diluted share). The results are ahead of pre-pandemic 2019 levels. Digital net revenue increased 15.9% to $51.1 million, while broadcast advertising net revenue increased 7.7% to $47.7 million.

CEO BILL WILSON said, “I am proud to announce our strong start to 2022, with net revenue, Adjusted EBITDA and net income increasing year-over- year by +13%, +10%, and $8.9 million, respectively. In addition, net revenue and Adjusted EBITDA exceeded our previously issued guidance due to strong growth and strong margins. As a digital first local media company, our first quarter performance was driven by our digital platform and solutions, with total digital revenue increasing +16% year-over-year in the first quarter (representing 51% of our total Q1 net revenue) and total digital Adjusted Operating Income increasing +11% year-over year (representing 55% of our total Q1 Adjusted Operating Income).

"We are also thrilled to announce that we have officially surpassed 2019 pre-COVID results with first quarter 2022 net revenue, Adjusted EBITDA and net income exceeding Q1 2019 levels by +7%, +15%, and $7.3 million, respectively," WILSON continued. "As we move forward, we expect double-digit digital net revenue growth to continue at strong margins, fueling our overall growth and subsequent debt reduction, from 4.66x net leverage today to 4.0x by year end. We are also pleased to re-affirm our 2022 guidance and our 2024 digital revenue target of at least $275 million. These results and confidence in our outlook are due, in part, to the fact that TOWNSQUARE is the only local media and digital marketing solutions company of scale focused principally on markets outside of the Top 50 in the UNITED STATES, a vital differentiator for our Company.”

WILSON added, “Our new reporting segments highlight the profit characteristics of our digital platform, which is essentially equal to those of our broadcast platform, each with profit margins of approximately 30%. While we view local radio as an extremely valuable asset with significant and attractive cash flow properties, unparalleled consumer reach, and an important and trusted local connection to our audience and communities, it is not our primary growth driver. With approximately half of our total revenue and profit coming from digital today, we have a strong digital growth engine that will drive significant and consistent growth in the coming years. It is our belief that as a digital first local media company providing a detailed breakout of our digital revenue and digital profit, TOWNSQUARE should be afforded a sum-of-the-parts valuation that gives credit to our digital assets.”

Second quarter guidance is for net revenue between $117 million and $121 million and Adjusted EBITDA between $32 million and $33 million. The company also reaffirmed its full year guidance of net revenue between $460 and $475 million and Adjusted EBITDA between $115 million and $120 million.

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