Townsquare Media, Inc. Q4 FY2024 earnings call

• Townsquare's fourth quarter and full year 2024 results met guidance. Generated $49 million of cash flow from operations in 2024 and ended with $33 million in cash. Completed successful debt refinancing extending maturities to 2030.
• Digital is the growth engine: Digital revenue contributed 52% of total net revenue, with Digital Advertising net revenue up 5.5% YOY to $159 million. Townsquare Interactive achieved turnaround with subscriber and revenue growth, and launched the Business Management Platform.
• Launched Media Partnership Division for Digital Programmatic Advertising, with potential for significant growth in 2026 and beyond. Broadcast is a mature cash cow but managed with strong margins.

Digital revenue was $234 million, contributing 52% of total net revenue, and generated $62 million of segment profit (27% margin). Digital Advertising net revenue was $159 million, up 5.5% YOY and 35% of total net revenue. Townsquare Interactive had net revenue decline 8% YOY but saw improved growth rates from negative 15% in Q1 2024 to +2% in Q4 2024. Broadcast Advertising net revenue declined 1% YOY, but segment profit margins were strong at ~30% in 2024.

• First quarter 2025 net revenue expected $98-$100M, adjusted EBITDA $17-$18M. Full year 2025 revenue expected $435-$455M, adjusted EBITDA $90-$98M.
• Dividend increased to $0.20 per share (annualized $0.80 per share).
• Townsquare Interactive expected strong year-over-year segment profit growth in Q1 2025, with revenue growth doubling from Q4 2024's +2% to ~4% in Q1 2025.

• Broadcast advertising is a mature, declining business as spending shifts to digital. Economic uncertainty could impact advertising spending for Interactive and Ignite. Regulatory changes (e.g., deregulation of radio ownership) could affect M&A prospects and business dynamics.

Q: Could you add more color on Townsquare Interactive, including subscribers ended Q4 and Q1 2025 outlook?

A: Townsquare Interactive saw turnaround with subscriber growth, month-over-month revenue growth, and year-over-year revenue growth in Q4 2024. Stopped disclosing subscribers but expects revenue growth rate to at least double Q4's +2% in Q1 2025, with strong profit growth expected.

Q: Thoughts on FCC deregulation, M&A in radio, and Media Partnership prospects?

A: Deregulation of radio ownership is expected, and Townsquare is well-positioned to acquire radio assets outside top 50 markets. The Media Partnership Division has potential to be a significant revenue and profit driver, with $7-8M top line revenue expected in 2025 and $50M+ by 2027-2028.

Q: How manage Interactive and Ignite during economic uncertainty?

A: Advertising market is healthy, with Digital Advertising expected to grow in high-single-digits in 2025. Townsquare Interactive is set for strong growth in 2025 with improved efficiency and the Business Management Platform, offsetting economic uncertainty through digital strength.