Townsquare Drives Sequential Improvement in Second Quarter

Core Insights - Townsquare Media, Inc. reported a net revenue of $118.2 million for Q2 2024, a decrease of 2.5% year-over-year, with a net loss of $48.9 million primarily due to non-cash impairment charges [2][9][10] - Digital revenue accounted for 52% of total net revenue in the first half of 2024, with Digital Advertising showing a year-over-year growth of 1% [2][5] - The company has maintained a strong cash position of $29 million and has repurchased $14 million of debt and $22 million of equity in the first half of 2024 [2][3][13] Financial Performance - Q2 2024 Adjusted EBITDA decreased by 8.3% year-over-year to $26.2 million, while total digital net revenue decreased by 3.8% [5][10][12] - For the first six months of 2024, net revenue decreased by 2.9% to $217.9 million, with Subscription Digital Marketing Solutions revenue down 14.2% [10][11] - The company reported a net loss of $47.3 million for the first half of 2024, compared to a net loss of $4.6 million in the same period last year [11][12] Segment Performance - Subscription Digital Marketing Solutions revenue decreased by 12.9% in Q2 2024, while Digital Advertising revenue increased by 1% [5][37] - Broadcast Advertising revenue was approximately flat, decreasing by only 0.2% year-over-year [5][37] - Total Digital Adjusted Operating Income decreased by 19.4% in Q2 2024, with Subscription Digital Marketing Solutions Adjusted Operating Income down 10.1% [5][10] Capital Management - The Board of Directors approved a quarterly cash dividend of $0.1975 per share, reflecting a yield of approximately 7% based on recent closing prices [3] - The company has repurchased 2.2 million shares of common stock at an average price of $10.25 in the first half of 2024 [6][10] - S&P Global upgraded the rating of Townsquare's Senior Secured Notes from B to B+ in June 2024, citing improved performance and credit metrics [2][10] Guidance - For Q3 2024, net revenue is expected to be between $114 million and $116 million, with Adjusted EBITDA projected between $25 million and $27 million [7] - Full-year 2024 net revenue is anticipated to be between $440 million and $455 million, with Adjusted EBITDA expected between $100 million and $105 million [7]