Townsquare Media (TSQ) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue declined 2.5% year-over-year to $118.2 million, with sequential improvement from Q1 and in line with guidance.

• Digital revenue comprised 52% of total net revenue and 51% of profit in 1H 2024, more than double the industry average.

• Townsquare Interactive returned to net subscriber and sequential revenue growth, adding 275 net subscribers in Q2.

• Net loss for Q2 was $48.9 million, primarily due to non-cash impairment charges and increased stock-based compensation.

• The company repurchased $14–$23 million in debt and $14–$22 million in shares in 1H 2024, including a 1.5 million share buyback from MSG.

Financial highlights

• Q2 2024 Adjusted EBITDA was $26.2 million, down 8.3% year-over-year, within guidance.

• Digital advertising net revenue grew 1% year-over-year, with programmatic up 9% but national digital down $1.5 million.

• Townsquare Interactive net revenue declined 12.9% year-over-year, but profit margin improved to 29%.

• Live events revenue fell 11% to $4.6 million, with a small profit.

• Cash and cash equivalents at June 30, 2024: $28.5–$29 million; long-term debt: $487–$490 million.

Outlook and guidance

• Q3 2024 net revenue expected between $114–$116 million; Adjusted EBITDA between $25–$27 million.

• Full-year 2024 net revenue guidance: $440–$455 million; Adjusted EBITDA: $100–$105 million.

• Dividend raised 5% to $0.1975 per share quarterly, $0.79 annualized, ~7% yield.

• Digital advertising revenue growth expected to improve to mid-single digits in Q3, with programmatic as the main driver.

• Political revenue for 2024 estimated at $14–$16 million, near record levels.