Friday, March 25, 2022

Townsquare Media (TSQ)
A Cherry Of A Deal

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Expands its radio footprint. The company plans to acquire Cherry Creek Broadcasting’s 35 stations in nine markets for $18.75 million. Given overlap in certain markets, the company plans to divest six radio stations. The transaction is expected to close in Q3 2022. The company will now serve a platform of 356 local stations in 74 markets, up from 67. We estimate that the company paid an attractive multiple, less than 7 times cash flow.

Plans to introduce Digital solutions.  Management indicated that the stations offer the ability to employ its Digital First strategy, with Townsquare Ignite, its programmatic advertising business, and Townsquare Interactive, its subscription based, digital agency business. As such, we anticipate enhanced Digital revenue and adj. EBITDA growth from the acquired stations …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.