Company Overview - Beasley Media Group's future growth will be driven by operational efficiency in its core business and expansion of its digital capabilities[12] - The company operates in 12 US markets[13] - The company's multimedia platform enables local businesses to maximize audience reach[28] Financial Performance - Q2 2025 - Total net revenue was $53 million[47] - Digital revenue accounted for 25% of total net revenue[23] - Same-station digital revenue grew by 81% year-over-year[23] - Station Operating Income (SOI) was $82 million[47] - Adjusted EBITDA was $47 million[47] Revenue Mix - Audio revenue for Q2 2025 was $398 million[23] - Digital revenue for Q2 2025 was $132 million[22] - Local advertisers accounted for 76% of Q2 2025 revenue[25]

Company Overview - Townsquare is a community-focused digital and broadcast media and digital marketing solutions company, primarily operating outside the top 50 US markets[8, 12] - The company has transformed into a Digital First Local Media Company, with over 50% of profit and revenue from digital advertising divisions and subscription digital marketing solutions[12, 23] - Digital platforms have reached all-time record audience levels, with the digital audience being approximately 5 times the size of the terrestrial radio audience[12] Financial Performance - LTM (Last Twelve Months) as of March 31, 2025, net revenue was $450 million and adjusted EBITDA was $101 million[16] - Digital net revenue for LTM as of March 31, 2025, reached $237 million, contributing to 53% of net revenue and 51% of segment profit[18] - Digital subscription solutions (Townsquare Interactive) accounted for 17% of total revenue and 25% of adjusted EBITDA for LTM as of March 31, 2025[18] - The company announced a quarterly dividend of $020 per share, or $080 on an annualized basis, representing approximately a 12% dividend yield as of May 7, 2025[17] Digital Growth and Strategy - Digital revenue has grown at a compound annual growth rate (CAGR) of 13% year-over-year since 2016[51] - The company's owned and operated digital brands have grown their audience by over 50 times since 2011, reaching approximately 58 million monthly unique visitors[63] - Townsquare Interactive has a total addressable market of approximately 88 million target customers, representing a $32 billion market[72, 77]

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]