Townsquare Media Second Quarter Revenue Up, Income Falls

Q2 Revenue Up

TOWNSQUARE MEDIA second quarter 2022 revenue rose 13.6% year-over-year to $121.9 million, but net income fell from $10.1 million to $4.9 million while Adjusted EBITDA increased 6.8%. Broadcast advertising revenue ticked up 1% to $57 million, but digital advertising jumped 25.4% to $37.2 million and subscription digital revenue rose 13.7% to $23 million.

CEO BILL WILSON noted record revenue and Adjusted EBITDA in the quarter and added, "Our strong top-line growth, margin profile, and cash generation characteristics have contributed to the reduction of our net leverage, now at a historical low of 4.65x as of June 30th, including the repurchase and retirement of $19 million of our Senior Secured Notes at or below par in Q2.

“We are also pleased to announce that we are raising our FY 2022 guidance following the close of the CHERRY CREEK acquisition on JUNE 17th. Our updated full year guidance reflects the ongoing momentum of our business and the strength of our performance to date, fueled by our differentiated digital platform. As a Digital First Local Media Company focused principally on markets outside of the Top 50 in the UNITED STATES, we have a resilient digital growth engine supported by subscription digital marketing solutions, with a large addressable market and limited competition. As we move forward, we expect double-digit digital net revenue growth to continue at strong margins, reaching our digital revenue target of at least $275 million in 2024. With half of our total revenue and profit coming from digital today, it is our belief that over time as digital continues to meaningfully grow, TOWNSQUARE should and will be afforded a sum-of the-parts valuation that our digital assets deserve.”

The adjusted guidance is for third quarter net revenue between $120 million and $127 million and Adjusted EBITDA between $30 million and $32 million. Full year guidance is for net revenue between $465 million and $480 million and Adjusted EBITDAbetween $116 million and $121 million.

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