Townsquare Interactive Q3 Net Subscription Revenue Increased 14.5% 1,150 Q3 Net Subscriber Additions Marks 10th Consecutive Quarter of 850 (or more) Net Subscriber Additions at Townsquare Interactive ending the quarter with 21,900 monthly subscribers
Purchase, NY – November 9, 2020 – Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare,” the “Company,” “we,” “us,”or “our”) announced today results for the third quarter ended September 30, 2020.
“I am proud to share with you today that Townsquare’s third quarter results exceeded our expectations, driven by sequential net revenue improvement throughout the quarter as our business continued to accelerate despite the impact of the COVID-19 pandemic. Third quarter net revenue improved to a decline of -15.3%, as compared to the third quarter of the prior year, which was up from a decline of -34.5% in the second quarter. This translated to a strong increase in Adjusted EBITDA from $2.1 million in the second quarter to $17.5 million in the third quarter. Our better than anticipated third quarter results were due to gains in both our Townsquare Interactive and Advertising segments,” commented Bill Wilson, Chief Executive Officer of Townsquare. “Townsquare Interactive, our digital marketing subscription business, has delivered net subscription revenue and subscriber growth each and every month of 2020, demonstrating its recession-resistant characteristics and proving to be valuable and a tremendous resource to local businesses. In the third quarter, Townsquare Interactive’s net revenue increased 14.5% over the prior year period, at an Adjusted Operating Income margin in excess of 30%, and added approximately 1,150 net subscribers, marking the 10th consecutive quarter of 850 (or more) net subscriber additions and the most quarterly net subscriber adds in nearly six years. Townsquare Interactive generated $5.5 million and $15.2 million of Adjusted Operating Income in the three and nine months ended September 30, 2020, respectively.”
Mr. Wilson added, “Improvement across our Advertising segment was broad based, as revenue declines improved from -37.5% in the second quarter to -17.2% in the third quarter, each as compared to the prior year. Broadcast advertising net revenue sequentially improved throughout the quarter, with and without political revenue, and digital advertising net revenue returned to growth in the third quarter, driven by positive net revenue growth from Townsquare Ignite (+10% year over year), our digital programmatic advertising solution, and AMPED (+9% year over year), advertising revenue associated with our owned and operated local websites. In total, our digital net revenue exceeded 44% of our total net revenue in Q3 2020, and we remain confident that Townsquare Interactive and Townsquare Ignite will each generate $100 million of annual net revenue in
two to three years.”
Mr. Wilson concluded, “The strong cash generation abilities of our assets and our careful expense management allowed us to generate $9.1 million of cash in the third quarter despite revenue declines, compared to the prior year, enhancing our strong liquidity position of $79.1 million of cash at the end of the third quarter. We will continue to carefully manage our expenses as we have throughout the pandemic with the goal of balancing cost reductions without sacrificing long-term growth. Although2020 has been a challenging year, we are proud that we did not need to alter our core strategy. Rather, we believe the pandemic has allowed us to separate from our local media peers by placing a spotlight on the success of our strategy. Our focus on underserved small and mid-sized local markets, our investment and commitment to our “Local First” strategy, and our investment in world class personnel, technology and infrastructure that allowed us to build a strong digital platform with
best of breed products, services and solutions that contributes 44% of our total revenue, have all contributed to our ability to mitigate revenue declines and manage quite effectively through this downturn. We believe these actions will position Townsquare to quickly emerge from this crisis and return to our market leading performance quickly once this crisis abates.”
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About Townsquare Media, Inc.:
Townsquare is a radio, digital media, entertainment and digital marketing solutions company principally focused on being the premier local advertising and marketing solutions platform in small and mid-sized markets across the U.S. Our assets include 321 radio stations and more than 330 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 20,750 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite) and numerous local live events each year. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; iconic local and regional events such as WYRK’s Taste of Country, the Boise Music Festival, the Red Dirt BBQ & Music Festival and Taste of Fort Collins; and leading tastemaker music and entertainment websites such as XXLmag.com, TasteofCountry.com and Loudwire.com. For more information, please visit www.townsquaremedia.com, www.townsquareinteractive.com, and www.townsquareignite.com.
Contact:
Claire Yenicay
(203) 900-5555
investors@townsquaremedia.com