Financial Data and Key Metrics Changes - In Q2 2025, total net revenue declined approximately 2% year over year, aligning with the guidance of negative 2% to negative 4% [6][25] - Adjusted EBITDA increased by 1% year over year, exceeding the guidance of negative 1% to negative 5% [6][25] - Net leverage decreased to 4.58 times [6][29] Business Line Data and Key Metrics Changes - Digital solutions accounted for approximately 55% of total net revenue in the first half of 2025, with digital revenue growing 4% year over year [7][8] - Townsquare Interactive's segment profit increased by 19% year over year, with profit margins expanding to 33% [16][26] - Broadcast advertising net revenue declined by 8% year over year, consistent with previous expectations [20][27] Market Data and Key Metrics Changes - The company reported a decline in broadcast revenue due to shifts in advertising from traditional to digital platforms, with local market spot share increasing to an all-time high of 39% [21][27] - Digital advertising revenue grew by 2% year over year despite challenges in the advertising marketplace [9][10] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, emphasizing the growth of its digital platforms as the primary growth engine [8][20] - A new media partnership model was launched to expand digital advertising solutions without acquiring additional assets, with expectations of significant revenue growth in the coming years [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the digital advertising growth trajectory despite current challenges, citing strong direct sales performance [40][42] - The company anticipates continued strength in programmatic and direct sales, with expectations for Q3 revenue to align with Q2 performance [23][32] Other Important Information - The company plans to use excess cash flow for debt reduction and to support a high-yielding dividend, with a quarterly dividend of $0.20 per share approved [31][29] - The company has repaid $10 million of debt in Q2 2025, contributing to a total of $13 million repaid since February [29][30] Q&A Session Summary Question: Can you provide more color on the search engine referral traffic trends? - Management noted that search engine referral traffic has declined significantly, impacting indirect revenue, but direct sales remain strong [40][41] Question: Is the Q3 guidance softer than expected due to advertiser hesitance? - Management confirmed that advertisers are cautious but still spending, with a shift towards short-term placements [45][46] Question: How does the current referral traffic decline compare to past social media algorithm changes? - Management indicated that the current decline is similar to past changes in social media algorithms, but they expect traffic to plateau and grow again over time [55][56] Question: What is the outlook for Townsquare Interactive's revenue growth? - Management expressed confidence in returning to revenue growth in 2026, supported by strong profit performance in 2025 [63][66] Question: How is the Phoenix office performing in terms of staffing and growth? - Management reported positive progress in the Phoenix office, with around 40 employees and a focus on recruiting talent to support West Coast operations [76][78]

Core Insights - The E.W. Scripps Company (SSP) and TEGNA (TGNA) are adapting to changes in the local media landscape with differing strategies for growth and cost management [1][2] Group 1: SSP Overview - SSP is expanding its local media segment through a station swap with Gray Media, acquiring KKTV, a CBS affiliate, to enhance its presence in the Western U.S. market [3][5] - The company is implementing centralized production and AI tools to improve operational efficiency and manage costs, while keeping employee costs low [4][6] - In Q1 2025, SSP's local media segment generated $325 million in revenues, with a segment profit of $35 million, supported by cost controls and sports programming partnerships [6] Group 2: TGNA Overview - TEGNA is focusing on building a stronger foundation through leadership changes, system upgrades, and a new sales performance structure, while utilizing resource sharing across stations [7] - The company faces challenges with soft consumer confidence and cautious advertising spending, which may impact its near-term advertising performance [8][10] - As of March 31, 2025, TEGNA reported total debt of $3.08 billion and a net leverage ratio of 2.8X, raising concerns about its financial flexibility [9][10] Group 3: Comparative Analysis - Valuation-wise, SSP shares are trading at a Price/Sales ratio of 0.12X, significantly lower than TGNA's 0.94X, indicating a cheaper valuation for SSP [11] - Year-to-date, SSP shares have increased by 41.2%, while TGNA shares have decreased by 8.6%, reflecting differing investor sentiments towards the two companies [13] - SSP is viewed as having better growth potential due to its active strategies and operational efficiency, while TEGNA is seen as struggling with weak demand and stagnant growth [18][19]

Financial Data and Key Metrics Changes - In Q1 2025, total net revenue decreased by 1% year over year to $98.7 million, within the guidance range of $98 million to $100 million [18] - Adjusted EBITDA increased by 3.5% year over year to $18.1 million, exceeding the guidance range of $17 million to $18 million [18] - Adjusted EBITDA margins expanded from 17.6% in Q1 2024 to 18.4% in Q1 2025 [18] Business Line Data and Key Metrics Changes - Digital revenue grew by 6% year over year, accounting for 57% of total net revenue in Q1 2025, the highest percentage achieved by the company [6][7] - Townsquare Ignite, the digital advertising segment, reported a net revenue increase of 7.6% year over year, with a profit margin of 21.5% [19] - Townsquare Interactive, the subscription-based digital marketing solutions segment, saw a segment profit increase of 22% year over year, with profit margins at approximately 32% [20] Market Data and Key Metrics Changes - The broadcast advertising net revenue, excluding political, declined by 8.3% year over year, while total broadcast revenue decreased by 9.1% [21] - The company continues to gain local and national broadcast market share, despite the overall decline in the broadcast market [16] Company Strategy and Development Direction - The company reaffirms its digital-first local media strategy, focusing on markets outside the top 50 in the U.S. as a competitive advantage [29] - The media partnership strategy is expected to generate $50 million in revenue within three to five years, contributing to the company's growth without significant capital investment [10][49] - The company plans to continue investing in digital product technology, sales, and content to maintain its competitive edge [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and highlighted the strength of its digital platform as a growth engine [4][30] - The company anticipates continued growth in digital advertising revenue, with Q2 growth rates expected in the mid-single digits [10][25] - Management noted that the broadcast segment is viewed as a mature cash cow business, with expectations of continued revenue decline [15] Other Important Information - The company ended Q1 2025 with $6 million in cash, down from $27 million at year-end, primarily due to interest payments and refinancing fees [23] - The board approved a quarterly dividend of $0.20 per share, reflecting a yield of approximately 11.5% based on the current share price [25] Q&A Session Summary Question: Can you discuss the competitive landscape for Ignite and revenue from markets without radio stations? - Management highlighted that operating outside the top 50 markets provides a significant competitive advantage, with Ignite being a full-service digital agency [35][36] Question: What percentage of broadcast advertisers also buy digital solutions? - The majority of broadcast advertisers also purchase digital solutions, with over 85% engaging in both [40][43] Question: How does the company view potential deregulation in the broadcast industry? - Management is optimistic about deregulation, seeing it as an opportunity for both organic growth and potential acquisitions [46][49] Question: What is the growth potential for media partnerships outside the top 50 markets? - Management indicated significant growth potential, with hundreds of markets available for partnerships, contributing to future revenue growth [56][58] Question: How are interactive subscribers responding to current economic uncertainties? - Management noted a temporary pause in spending due to uncertainty, but recent months have shown improvement in revenue trends [60][64]

Financial Data and Key Metrics Changes - In Q1 2025, total net revenue decreased by 1% year over year to $98.7 million, within the guidance range of $98 million to $100 million [22] - Adjusted EBITDA increased by 3.5% year over year to $18.1 million, exceeding the guidance range of $17 million to $18 million [19][22] - Adjusted EBITDA margins expanded from 17.6% in Q1 2024 to 18.4% in Q1 2025 [19] Business Line Data and Key Metrics Changes - Digital revenue grew by 6% year over year, accounting for 57% of total net revenue in Q1 2025, the highest percentage achieved by the company [6][30] - Townsquare Ignite, the digital advertising segment, saw net revenue increase by 7.6% year over year, with a profit margin of 21.5% [20] - Townsquare Interactive, the subscription-based digital marketing solutions segment, returned to year-over-year profit growth with a 22% increase in segment profit [21] Market Data and Key Metrics Changes - Broadcast advertising net revenue, excluding political, declined by 8.3% year over year, while total broadcast revenue decreased by 9.1% [22] - The company continues to gain local and national broadcast market share, despite the overall decline in the broadcast market [17] Company Strategy and Development Direction - The company reaffirms its digital-first local media strategy, focusing on markets outside the top 50 in the U.S. as a competitive advantage [30][31] - The digital platform is viewed as the growth engine, with plans to invest heavily in digital solutions and technology [6][30] - The media partnership strategy is expected to generate $50 million in revenue over the next three to five years, with a profit margin of approximately 20% [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and continue delivering strong cash flow [5][30] - The company anticipates continued growth in digital advertising revenue, with year-over-year growth rates expected in the mid-single digits for Q2 2025 [11][20] - Management highlighted the importance of maintaining a strong competitive advantage through organic growth and strategic partnerships [49][60] Other Important Information - The company ended Q1 2025 with $6 million in cash, down from $33 million at year-end due to various payments, including interest and dividends [25] - The board approved a quarterly dividend of $0.20 per share, reflecting a yield of approximately 11.5% based on the current share price [27] Q&A Session Summary Question: Can you discuss the competitive landscape for Ignite and revenue from markets without radio stations? - Management emphasized the competitive advantage of operating outside the top 50 markets and highlighted the sophistication and scale of their digital advertising solutions [36][38] Question: What percentage of broadcast advertisers also buy digital solutions? - The majority of broadcast advertisers also utilize digital solutions, with over 85% engaging in both [42][46] Question: What are the company's thoughts on potential deregulation in the broadcast industry? - Management expressed excitement about deregulation opportunities, indicating that they could pursue both organic growth and acquisitions in markets outside the top 50 [48][52] Question: How widely penetrated do you expect the media partnership area to be in the future? - Management noted significant growth potential in partnering outside the top 50 markets, with hundreds of opportunities available [56][60] Question: How are interactive subscribers dealing with current economic uncertainties? - Management observed a temporary pause in spending due to uncertainty but noted a recovery in May and June, indicating improved confidence among clients [62][66]

Financial Data and Key Metrics Changes - In Q4 2024, net revenue increased by 2.6% year over year to $117.8 million, while full year net revenue declined by 0.7% to $451 million [21][22] - Adjusted EBITDA for Q4 increased by 25.8% year over year to $31.2 million, with full year adjusted EBITDA approximately flat at $100.4 million, a 0.4% increase [22][25] - The company ended 2024 with $33 million in cash and generated $49 million in cash flow from operations [5][25] Business Line Data and Key Metrics Changes - Digital revenue grew by 1% year over year to $234 million, contributing 52% of total net revenue and 50% of total segment profit [7][18] - Townsquare Ignite, the digital advertising segment, saw net revenue increase by 5.5% year over year to $159 million, accounting for 35% of total company net revenue [8][22] - Townsquare Interactive, the subscription-based digital marketing solutions segment, returned to year-over-year revenue growth in Q4 with a 1.9% increase, although full year revenue decreased by 8.4% [23][24] Market Data and Key Metrics Changes - Broadcast advertising net revenue declined by 1.3% year over year, with a 4.1% decrease in Q4 [24][19] - Political revenue for the full year was $13.4 million, with Q4 political revenue at $7.2 million [21][22] - The company expects broadcast revenue to continue declining, projecting a similar decline of approximately 6% for 2025 [65][68] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with significant investments in digital advertising and marketing solutions [7][10] - A new Media Partnership Division was launched to expand digital programmatic advertising solutions to other local media [11][60] - The company plans to continue investing in digital product technology and maintain a strong competitive advantage in markets outside the top 50 cities [28][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, expecting high single-digit growth in digital advertising [71][73] - The company anticipates strong profit growth in Townsquare Interactive for Q1 2025, with expectations of $2.5 million to $3 million in profit for the year [38][47] - Management views the broadcast business as a mature cash cow, with expectations of continued revenue decline but strong cash flow generation [19][65] Other Important Information - The company successfully refinanced its debt, extending maturities until February 2030, and repurchased approximately $24 million worth of shares in 2024 [26][27] - A dividend increase of 1.3% year over year was approved, raising the annualized dividend to $0.80 per share [29][30] Q&A Session Summary Question: Can you provide more details on Townsquare Interactive's subscriber numbers and outlook for Q1 2025? - Management highlighted a successful turnaround in Townsquare Interactive, expecting revenue growth to double from Q4's 2% to at least 4% in Q1 2025, with profit growth expected to be around 20% [36][38] Question: What are the current subscription rates for Townsquare Interactive? - The average revenue per user (ARPU) remains around $300, with some offerings exceeding $400, and management expects this to continue over the next two years [42][43] Question: Are there updated revenue goals for Interactive and Ignite? - Management expressed confidence in achieving strong growth in digital advertising and expects Townsquare Interactive to return to historical profit levels in the coming years [46][47] Question: How does the company view potential deregulation in radio and M&A opportunities? - Management believes deregulation is likely and positions the company as a potential acquirer of radio assets, particularly in markets outside the top 50 [52][56] Question: What is the outlook for broadcast revenue growth excluding political revenue? - Management expects broadcast revenue to decline in line with previous years, projecting a 6% decline for 2025 [65][68]