Set your alarm a little earlier than normal and be sure to grab a big cup of coffee.
Townsquare Media is once again delivering its quarterly results on a Monday at 8am Eastern.
What can investors expect from the “local first” company with local radio, programmatic and local digital capabilities?
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CEO Bill Wilson gave a preview of what could be a challenging Q2 2020 for TSQ on June 15, with the COVID-19 pandemic-delayed delivery of Townsquare Media’s first-quarter results.
“In the month of April, we took over $16 million of Q2 advertising revenue cancellations,” Wilson said during the Q1 earnings call for Townsquare. As a result, April net revenue finished down 36%, with broadcast revenue down 52%, digital revenue off 6%, and live events revenue completely wiped off the map.
These revenue trends continued into May, with net revenue finishing down 37% and broadcast revenue “improving by a few points” … to negative 49%.
With $1.7 million in monthly fixed cost savings and expense reductions including the elimination of 6% of Townsquare Media’s full-time staff, a “significant” reduction in the company’s part-timer base, and the temporary suspension of Townsquare’s 401(k) matching funds program, Wilson says the maximum amount of expense reductions have been made.
As such, a prettier picture is anticipated for Q2, but if an artist were called to paint it, it would perhaps resemble Hurricane Isaias, rather than 2017’s Hurricane Irma: messy and frustrating but hardly crippling and devastating.
Areas like Texas, Oklahoma and Arkansas, where restrictions were implemented later but didn’t last as long, took the biggest hit in May (a 44% decline) but, Wilson said, those locales were rebounding “nicely” in June. Those markets are off 28% year-over-year.
With fewer cancellations and new additions to the advertising mix in May, a trend continuing into June, Wilson and his C-Suite companions firmly believe Townsquare is on the long road to a steady recovery.
The answers will come in a week, prior to the Opening Bell on Wall Street.
TSQ finished Monday’s trading at $4.45, and is considered largely undervalued by financial analysts. A target price of $8.50 is in place for TSQ, which has been relatively flat since mid-June.
