- The stock price of Townsquare Media Inc (NYSE: TSQ) increased by over 10% during intraday trading. This is why it happened.
The stock price of Townsquare Media Inc (NYSE: TSQ) increased by over 10% during intraday trading. Investors are responding positively to the company announcing its financial results for the first quarter ended March 31, 2021.
These are the first-quarter highlights as compared to the first quarter of 2020:
— Diluted income per share was $(0.35), and Adjusted Net Income per diluted share was $0.17
— Generated Cash Flow from Operations of $19.4 million
— Issued $550.0 million of 6.875% senior secured notes due 2026
— Completed the repurchase of 100% of Oaktree Capital’s equity interest in the Company for $6.40 per security, representing a 19% discount to the pre-announcement share price (39% as of the March 9, 2021 closing date)
— Townsquare Interactive added approximately 850 net subscribers, the 12th consecutive quarter of 850 or more net subscriber additions
— Net loss for the quarter ended March 31, 2021 decreased $53.5 million to $6.1 million, as compared to a net loss of $59.6 million in the same period last year.
KEY QUOTE:
“We are extremely proud to report that Townsquare’s first quarter 2021 results approached, and in some cases exceeded, levels achieved in the pre-COVID first quarter of 2019, which surpassed our expectations and previously stated guidance. In the first quarter of 2021, net revenue declined -5% year over year, and -1.6% excluding political and Live Events net revenue. When excluding Live Events net revenue, first quarter net revenue increased +0.3% as compared to the first quarter of 2019. Total digital revenue growth accelerated to +13% year over year (+32% vs. Q1 2019), contributing nearly 49% of Townsquare’s total first quarter net revenue. Our digital revenue growth was fueled by Townsquare Interactive (TSI), our digital marketing solutions subscription business, Townsquare Ignite, our digital programming advertising platform, and Townsquare Amped, digital advertising on our owned and operated brands, which increased revenue year over year by +15%, +12%, and +11%, respectively. Impressively, TSI, Ignite, and Amped’s first quarter net revenue exceeded Q1 2019 revenue levels by +34%, +45%, and +15%, respectively. Over the next three years, we expect to grow our digital net revenue from $167 million (on a trailing twelve-month basis as of March 31, 2021) to $250 million. The strong growth of our digital revenue, together with our strong expense management, led to Adjusted EBITDA increasing nearly +30% over the prior year. I am especially proud to share that first quarter Adjusted EBITDA of $20.1 million is +$1.3 million, or +7%, higher than Q1 2019’s pro forma Adjusted EBITDA, and +$2.1 million, or +12%, higher when excluding profit from Live Events.”
— Bill Wilson, Chief Executive Officer of Townsquare Media, Inc
