Friday, November 08, 2024
Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
In line quarter. Total company revenues of $115.3 million was roughly flat with the year earlier period and in line with our $115.0 million estimate. Q3 adj. EBITDA was $25.5 million versus our $26.5 million estimate. Notably, the results were in line with the company’s previous guidance.
Digital revenue accelerates. Total digital revenue swung positive in the latest quarter, up 1.1%, the first time since q2 2023. The revenue improvement was led by its Ignite business (up 4.7%) and a significant moderation in the revenue decline at Townsquare Ignite (down 5.8%, much better than down 12.9% in Q2). Management indicated that Ignite’s Q4 revenue growth should triple to near 15% and Interactive should swing positive.
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