{"id":458384,"date":"2021-03-16T07:03:36","date_gmt":"2021-03-16T11:03:36","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=458384"},"modified":"2021-03-16T07:03:36","modified_gmt":"2021-03-16T11:03:36","slug":"townsquare-reports-strong-conclusion-to-2020-powered-by-digital-revenue-growing-6-year-over-year-to-162-million-and-representing-44-of-total-2020-net-revenue","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/townsquare-reports-strong-conclusion-to-2020-powered-by-digital-revenue-growing-6-year-over-year-to-162-million-and-representing-44-of-total-2020-net-revenue\/","title":{"rendered":"Townsquare Reports Strong Conclusion To 2020 Powered By Digital Revenue, Growing +6% Year Over Year To $162 Million And Representing 44% Of Total 2020 Net Revenue"},"content":{"rendered":"
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Q4 2020 Adjusted EBITDA +8.4%<\/h2>\n

Townsquare Interactive 2020 Net Subscription Revenue Increased 14% to $70 Million and Net Subscription Profit Increased 10% to $21 Million<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n PURCHASE, N.Y.<\/span>, March 16, 2021<\/span> \/PRNewswire\/ —\u00a0Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the “Company,” “we,” “us,” or “our”) announced today financial results for the fourth quarter and full year ended December 31, 2020<\/span>.<\/p>\n

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“As I look back over the past year, I am extremely proud of Townsquare’s performance, driven by our passionate and committed employees, our loyal audience and communities, and our resilient “Local First” operating strategy.\u00a0 Our fourth quarter financial results reflect that performance as they exceeded our goals and expectations, and as we look at 2021, we believe that we will continue to see strong improvement and strong results in our business.\u00a0 In the fourth quarter, year over year net revenue declines significantly narrowed to -3%, from a low of -35% in the second quarter and -15% in the third quarter, and I am so proud to report that Adjusted EBITDA returned to growth, increasing +8% year over year.\u00a0 Townsquare Interactive, our digital monthly subscription business, excelled throughout the year, accelerating year over year net revenue growth in Q4 to +16% and generating over $70 million<\/span> of revenue for the full year (+14% YoY) at a profit margin of approximately 30%.\u00a0 In total, digital net revenue increased +6% year over year, driven by both Townsquare Interactive and Townsquare Ignite (our digital programmatic advertising platform), which grew net revenue by +11% year over year.\u00a0 With $162 million<\/span> of 2020 digital net revenue, digital now accounts for approximately 44% of our total net revenue, further differentiating us in the local media marketplace.\u00a0 I am also pleased to reaffirm our expectation that Townsquare Interactive and Townsquare Ignite will each generate $100 million<\/span> in revenue in two to three years.\u00a0 2020 served to accelerate Townsquare’s transformation into a premier local media and digital marketing solutions company proudly super-serving markets outside the top 50 markets. Although we are proud of our roots and DNA in local radio and we continue to love local radio, 2020 was the year Townsquare became a “Digital First” company,” commented Bill Wilson<\/span>, Chief Executive Officer of Townsquare Media, Inc.<\/p>\n

Mr. Wilson continued, “Over the past year we have worked hard to position ourselves for success in 2021 and beyond, and that included addressing our balance sheet.\u00a0 In early January, we closed on $550<\/span>.0\u00a0million in aggregate principal amount of 6.875% senior secured notes due 2026.\u00a0 This offering – which replaced our existing debt in its entirety – was significantly oversubscribed, which allowed us to exceed our pricing expectations, locking in long-term capital at an attractive rate.\u00a0 I believe that our successful refinancing was due to our differentiated marketing and advertising solutions and “Local First” strategy, our large and growing digital platform, and our strong cash generation ability.\u00a0 We ended 2020 with over $83 million<\/span> of cash on our balance sheet, only a slight decline from 2019’s cash balance of $85 million<\/span>, and generated $32 million<\/span> of cash flow from continuing operations in a year where Adjusted EBITDA declined (due to the pandemic) by $40 million<\/span>.\u00a0 In addition, we repaid $15 million<\/span> of debt (prior to the refinancing) and made $4 million<\/span> of dividend payments.\u00a0 Additionally, we recently announced that we repurchased all of Oaktree Capital’s shares of Townsquare at $6.40<\/span> per security, a significant discount to the current share price.\u00a0 We are confident that this is a great transaction for Townsquare and our investors.\u00a0 The buyback is accretive on a cash flow per share and adjusted earnings per share basis in excess of 70%, and this resolves the significant overhang of Oaktree’s long-dated investment which we have often heard from current and prospective investors is an impediment to investing and building a position in Townsquare.”<\/p>\n

Mr. Wilson concluded, “I am very proud of the results we delivered in 2020 in the face of unprecedented challenges and turbulent times. Our Townsquare Team worked tirelessly and with great passion throughout the pandemic to help our Company, by helping local advertisers and businesses as well as by keeping local communities informed and entertained at a time when both needed it the most.\u00a0 Our team kept moving forward, although at times it did not always feel like it. \u00a0As we close out Q1 and move into Q2 2021, we believe our Flywheel is moving forward and gaining greater momentum each month and each quarter.\u00a0 We will continue to execute our “Local First” strategy in 2021, and we remain confident about the future of Townsquare and our revenue and profit growth prospects.”<\/p>\n

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\n Fourth Quarter Highlights<\/u>
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