Townsquare Stock Buy Back Could Show Early Q2 Promise


Townsquare’s “local first” digital approach carried them to a 2023 Q1 that outperformed expectations, despite a net loss. While net revenue was up 2.9% to $103.11 million, the recorded loss ended at $1.94 million after a massive $8.49 million quarterly non-cash impairment charge.

Now the company has taken a large step to buy back and retire shares, using cash on hand, in a show that Q2 could be a significant bump for the broadcaster.

Townsquare Media announced on Friday morning that it has repurchased and retired 1.5 million shares of its Class C common stock, previously held by MSG National Properties, LLC. The shares were bought back for $9.70 per share, representing an 8.5% discount from the closing price of the Class A common stock on Thursday.

As a result of the repurchase, MSG now holds a total of 1,708,139 shares of Common Stock in Townsquare Media. This includes 583,139 shares of Class A Common Stock and 1,125,000 shares of Class C Common Stock. By retiring the repurchased shares, Townsquare reduces its outstanding shares, and potentially increase the ownership percentage of other shareholders.

Overall, this repurchase and retirement of shares highlights Townsquare Media’s commitment to efficiently manage its capital and capitalize on opportunities that benefit its shareholders.

“We could not be more pleased to share that given our strong cash position, we were able to repurchase approximately 8.5% of our total shares outstanding (and nearly half of MSG’s ownership in Townsquare), capturing a positive return for our shareholders. Due to our strong cash flow generation, we have demonstrated Townsquare’s ability to support a high-yield dividend and repurchase debt and equity, while also simultaneously investing in the future of our digital growth engine,” commented Bill Wilson, Townsquare’s Chief Executive Officer.

“This repurchase is immediately accretive to shareholders and we thank our Board of Directors for their vote of confidence in our medium and long-term business plan to grow revenue and profits.”