In This Article:
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Cash on Balance Sheet: $33 million at the end of 2024.
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Cash Flow from Operations: $49 million in 2024.
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Digital Revenue Contribution: 52% of total net revenue in 2024.
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Digital Advertising Net Revenue: Increased 5.5% year-over-year to $159 million in 2024.
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Digital Advertising Segment Profit Margin: Approximately 26% in 2024.
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Townsquare Interactive Net Revenue: Declined 8% year-over-year in 2024.
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Townsquare Interactive Segment Profit Margin: Increased 10 basis points to 28.4% in 2024.
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Broadcast Advertising Net Revenue: Declined 1% year-over-year in 2024.
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Broadcast Segment Profit Margin: Approximately 30% in 2024.
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Fourth Quarter Net Revenue: Increased 2.6% year-over-year to $117.8 million.
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Full Year Net Revenue: Declined 0.7% year-over-year to $451 million.
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Adjusted EBITDA: Increased 25.8% year-over-year in Q4 to $31.2 million; full year adjusted EBITDA was approximately flat at $100.4 million.
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Net Income: $25 million or $1.42 per diluted share in Q4 2024.
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Debt Refinancing: Completed with a $490 million credit agreement, extending maturities until 2030.
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Dividend Increase: Raised to $0.20 per share, equating to $0.80 per share annually.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Townsquare Media Inc (NYSE:TSQ) met its fourth quarter and full-year 2024 guidance for both net revenue and adjusted EBITDA.
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The company successfully refinanced its debt, extending maturities until 2030, which strengthens its financial position.
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Digital revenue contributed 52% of total net revenue, highlighting the success of TSQ's digital-first strategy.
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Townsquare Interactive achieved a turnaround, returning to year-over-year revenue growth and is expected to see strong profit growth in 2025.
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The digital advertising segment, Ignite, saw a 15.5% year-over-year revenue growth in Q4 2024, driven by strong programmatic advertising.
Negative Points
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Broadcast advertising net revenue declined by 1% year-over-year in 2024, with a 6% decline excluding political revenue.
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Full-year net revenue declined 0.7% year-over-year, indicating challenges in overall revenue growth.
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The company anticipates a decline in broadcast revenue to continue, viewing it as a mature cash cow business.
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Interest expenses are expected to increase by approximately $9 million annually due to the refinancing of debt.
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Townsquare Interactive's net revenue declined 8% in 2024, despite improvements in growth rates throughout the year.
Q & A Highlights
Q: Can you provide more details on Townsquare Interactive's subscriber numbers and expectations for Q1 2025? A: Bill Wilson, CEO, explained that while they stopped disclosing subscriber numbers, they expect revenue growth to double from Q4's 2% to at least 4% in Q1 2025. They anticipate strong profit growth, with a 20% increase expected in Q1, equating to about $1 million in incremental profit year-over-year.