Townsquare Media (TSQ)
Another Beat And Raise Quarter
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.
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Strong Q3. Total company revenues of $111.3 million beat our estimate of $107.8 million. The largest variance from our estimate was in its Local Marketing Solutions segment, driven by strong growth in its programmatic, Ignite business, and advertising on its own websites and apps, called Amped. Adj. EBITDA increased a strong 66.5% to $29.1 million, above our $27.5 million estimate. In addition, the company’s Townsquare Interactive segment increased revenues a strong 16.5%. Digital accounted for 47% of total company revenues in the quarter.
Fast paced recovery. The recent results were extraordinary given that the company has virtually recovered to pre-Covid levels. In the latest quarter, the company’s revenues were 99% of Q3 2019 levels. Notably, in the latest quarter, adj. EBITDA was 101% of Q3 2019 levels. For the full year, the company expects that adj. EBITDA will be as much as 103% of pre-Covid 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.