Townsquare Media (TSQ) investor relations material

Business model and market differentiation

• Focuses on small U.S. markets, often news deserts, providing primary local news and entertainment with high audience penetration and limited competition.

• Achieves 50% weekly reach via radio and 77% when including digital platforms in its 74 markets.

• Digital now exceeds 50% of both revenue and cash flow, driven by Townsquare Ignite and Townsquare Interactive.

• Maintains a competitive moat by offering national-scale digital solutions in underserved markets.

Townsquare Interactive: strategy, changes, and outlook

• Transitioned to a call center service model and mandated return-to-office, causing short-term disruption but enabling scalable growth and higher margins.

• Lost $7 million in cash flow profit over 2023-2024 due to these changes but expects $3+ million profit in 2025 and a return to historical growth rates by 2026.

• CRM adoption is now universal among subscribers, with ongoing innovation in digital offerings.

• Maintains $300 average monthly price, focusing on customer growth and margin expansion rather than price increases.

• AI tools are being aggressively deployed to drive efficiency and further margin gains over the next 2-3 years.

Townsquare Ignite: growth drivers and partnerships

• Ignite, the digital advertising segment, is the fastest-growing division, leveraging programmatic advertising, AI-driven creative, and streaming TV.

• Streaming TV and social media advertising are growing at double-digit rates, fueling segment expansion.

• White-label digital advertising partnerships with other media companies are scaling, expected to reach $50 million in revenue at 20% margin within five years.

• These partnerships allow expansion without capital-intensive radio acquisitions, freeing capital for deleveraging or share buybacks.