Movers and SHAKERS
Townsquare Media Inc (TSQ)
Reaffirms Its Favorable Digital Revenue Outlook
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, DOR, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid Digital performance. Both revenues and cash flow were above expectations for what was one of the its most difficult quarters in its history given the Covid pandemic. Revenues declined 34.5% to $74.05 million, which was better than our $69.95 million estimate, and better than its peers, with many reporting revenue declines of as much as 60%. Q2 operating cash flow, as measured by adjusted EBITDA, was better than expected as well, $2.08 million versus our $1.10 million estimate.
Why we view the filing favorably. Its subscription, digital marketing services business, Townsquare Interactive, increased revenues a strong 10.5% in Q2, demonstrating its recession resistant qualities. Both its Townsquare Interactive and its programmatic business, Ignite, are expected to ...
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.