NEW YORK — Investors in Townsquare Media will be pleased with their “decent” return over the last five years. That’s the conclusion of financial blog Simply Wall St., which took a deep dive into the radio station ownership group that derives most of its revenue from digital initiatives.
NYSE-traded “TSQ” is up 41.5% over the past five years.
But, could it have been bigger? Simply Wall St. suggests that is a possibility, as that’s less than the market return.
Of course, the radio broadcasting industry was torpedoed by the COVID-19 pandemic, which began 4 1/2 years ago. Today, Audacy Inc. awaits the FCC’s likely 3-2 approval of its post-bankruptcy restructuring plan, with an announcement due within the next seven days. Beasley Media Group has engineered a 1-for-20 reverse stock split as part of bigger initiatives designed to avoid a voluntary Chapter 11 filing. Cumulus Media and iHeartMedia continue to struggle with significant lender debt.
Then, there is Townsquare Media, which has seen its shares rise by 5.6% over the past 12 months (despite a year-to-date dip) and in pre-market trading saw its stock valued at $10.27. Dividend payments are being made to shareholders; “in fact, the dividend has increased over time, which is a positive,” Simply Wall St. says.
Townsquare’s next ex-dividend date is October 15.
As such, the company led by CEO Bill Wilson that takes a “local first” digitally focused approach to serving companies as diverse as El Paso; Norwich, N.Y.; and Fort Collins, Colo. has emerged as a segment leader.
Yet, the financial blog remains tempered on its satisfaction with Townsquare’s overall performance.
“Townsquare Media shareholders are up 16% for the year (even including dividends). But that return falls short of the market,” it concludes.
There is a “silver lining” — the gain was actually better than the average annual return of 11% per year over five year. “This suggests the company might be improving over time,” Simply Wall St. says.
