The “digital first” digital media and advertising company with broadcast radio stations in mid-sized and small U.S. markets led by CEO Bill Wilson enjoyed a stronger end to 2024 than in 2023. But, there are clouds on the horizon, as Townsquare Media offered Q1 2025 guidance that came in slightly lower than what the two analysts that cover the company project.
Townsquare Media released its Q4 and full-year 2024 results early Monday (3/17), with an 8am Eastern earnings call scheduled ahead of the famed New York City St. Patrick’s Day Parade. Will Wilson, CFO Stu Rosenstein and Chief Operating Officer Erik Hellum be in a celebratory mood? Sure, as net revenue increased to $117.81 million from $114.79 million, coming in ahead of $116.41 million consensus estimate; the high estimate was $117.83 million.
Operating costs and expenses were on the decline, to $96.49 million from $122.68 million, as non-cash impairment charges were largely reduced year-over-year in Q4.
Total it all up, and Townsquare Media in Q4 enjoyed net income of $25.04 million ($1.42 per diluted share), shifting from a net loss of $1.88 million (-$0.14) in Q4 2023.
On an adjusted basis, net income grew to $10.32 million ($0.60 per diluted share), rising from $6.07 million ($0.34 per share) and easily beating the $0.58 EPS estimate offered from one analyst reporting to Yahoo! Finance on their estimate.
This helped Townsquare Media in lowering its full-year net loss to $10.93 million, from $43.02 million.
While Townsquare Media is enjoying sharp growth in its digital advertising arm, broadcast advertising remains its biggest revenue generation machine. In Q4 2024, broadcast advertising revenue was down 4.1%. Meanwhile, “Subscription Digital Marketing Solutions” revenue was up 1.9% against slightly higher expenses. And, expenses also ate into the digital advertising growth in Q4.
Political revenue totaled $7.2 million in Q4 2024.
While the final three months of 2024 were positive ones for Townsquare, this year could portend a period of uncertainty, given the volatile economy, tariff talk and the possibility of deregulation from the FCC.
For the first quarter of 2025, net revenue is expected to be between $98 million and $100 million, below analysts’ forecasts, while Adjusted EBITDA is expected to be between $17 million and $18 million.
That didn’t stop Townsquare’s board of directors from rewarding its shareholders. It approved a quarterly cash dividend of $0.20, payable May 1 to shareholders of record as of the close of trading on April 17.
As of the last closing price this reflects a dividend yield of approximately 10%.
“The Board’s decision to once again increase the dividend reflects their ongoing confidence in our free cash flow generation and our differentiated ‘Digital First’ business strategy,” Wilson said in prepared comments.
