Townsquare Media posted nearly flat second-quarter revenue despite continued broadcast advertising pressure. Digital businesses again fueled the company’s overall performance.
What We Know: Townsquare Media reported second-quarter net revenue of $115.4 million, a slight 0.1% decline from the same period last year. However, digital advertising continued to offset weakness in traditional broadcast operations. Meanwhile, the company generated $47.1 million in digital advertising revenue, marking another quarter of double-digit growth. Broadcast advertising revenue, however, fell as advertisers remained selective with spending. Broadcast advertising continued to face headwinds during the quarter. Even so, the business remained a meaningful contributor to overall cash flow while Townsquare Media continued expanding its digital portfolio.
What the Numbers Show:
| Metric | Result | Year-Over-Year Change |
|---|---|---|
| Net Revenue | $115.4 million | ▼ 0.1% |
| Net Income | -$41.8 million | ▼ -2181% |
| Adjusted EBITDA | $24.8 million | ▼ 6.2% |
| Digital Advertising Net Revenue | $47.1 million | ▲ 11.0% |
| Broadcast Advertising Net Revenue | $46.5 million | ▼ 5.5% |
What They Said: “Our Digital businesses represented 57% of Townsquare’s net revenue and 59% of Segment Profit in the first six months of the year. We believe the combination of multiple scalable, high-margin digital growth platforms and a durable Broadcast cash flow business creates a differentiated company with significant long-term opportunities to drive shareholder value through sustained net revenue, Adjusted EBITDA and cash flow growth, net leverage reduction, and future dividend payments.” -Townsquare Media CEO Bill Wilson
What It Means: Townsquare Media‘s latest results reinforce the company’s long-term digital transformation strategy. While broadcast advertising remains under pressure, expanding digital revenue continues to represent a larger share of the business. Consequently, investors will likely watch whether digital growth can further offset traditional media declines in the coming quarters while improving profitability.
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Garrett Searight is Barrett Media’s News Editor, which includes writing daily news stories, features, and opinion columns. He joined Barrett Media in 2022 after a decade leading several radio brands in several formats, as well as a 5-year stint working in local television. In addition to his work with Barrett Media, he is a radio and TV play-by-play broadcaster. Reach out to him at Garrett@BarrettMedia.com.