Movers and SHAKERS
Townsquare Media Inc (TSQ)
A Recovery For The Record
Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q2 exceeds expectations. Total revenues of $107.3 million beat our estimate of $102.5 million, with the largest upside in local marketing solutions. Adjusted EBITDA was $30.3 million, an all time record, versus our $28.3 million estimate, benefiting from higher gross margins (33.3% versus our 32.7% estimate). Notably, the company's Digital businesses were strong, with Townsquare Interactive adding a record number of 1,350 net new subscribers and revenues up nearly 20%.
Operating near pre-Covid levels. The company's revenue and EBITDA recovery has been remarkable, with revenues roughly 98% of pre-covid levels, excluding its hard hit Entertainment business. Based on recent 2021 revenue and adj. EBITDA guidance, the company is expected to be near full recovery, with full year 2021 EBITDA guidance actually better than 2019 levels ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.