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Townsquare Media (TSQ) – The Engine That Could

Media and Marketing
0 min read

Wednesday, May 11, 2022

Townsquare Media (TSQ)
The Engine That Could

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Exceeds Q1 expectations, above guidance. The company reported Q1 revenue of $100.2 million, above our estimate of $99.4 million and management’s previous guidance. Adj. EBITDA in the quarter was $22.1 million, exceeding our estimate of $21.4 million.

Digital inflection point. Total Digital revenue grew an attractive 15.9% year-over-year to $51.1 million. Notably, after accounting for 48% of total revenue in Q4 of 2021, Digital eclipsed the 50%-mark, accounting for 51% of total revenue in Q1. In our view, this milestone emphasizes that Townsquare truly has become a digital-first media company.  …

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. 

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