Townsquare Celebrates a Very Public Year


Townsquare Media GroupThe local radio-digital-event company Townsquare Media was the first broadcaster to go public in some time, and is still the most recent to do so. And its first year can only be called a success. Townsquare EVP Claire Yenicay told us how they did it.

The stock opened on 7/24/14 at $10.25.

Today, 7/23/15, it closed at $13.77.

In a challenging business environment which has put a strain on many publicly-traded companies, we’d have to call that 34.3% gain in share value a resounding success.

Yenicay told us that things have gone according to plan. “One year ago, we committed ourselves to building shareholder value through the strength of our leading positions in small and mid-sized markets and our diversified product offering. We believe our results in our first year as a public company have underscored the success of our strategy, and we are looking forward to building shareholder value in the future.”
We can expect more of the same. She said, “Looking forward, we continue to be focused on driving shareholder value and creating value for our audience and our advertiser clients, by providing original entertainment, music and lifestyle media experiences.”

The success has not gone unnoticed. Amy Yong of Macquerie Capital, handicapping the now-underway quarterly results season, observed Townsquare is expected to report a nice gain in local revenue. She said the company is “relatively immune to the volatility given its hyper-local small town presence. She said, “…a focus on digital brands/live events is generating outsized growth relative to its peers.”

Back in June, Seeking Alpha analyst Dallas Salazar cited the stock as a solid pick for a portfolio.

Discussing Townsquare’s small market profile, Salazar said, “The strategy is actually brilliant and has worked out well for the company because it has been able to do this on a large scale in aggregate, essentially created a ‘national’ market of its consolidated smaller markets.”

Yenicay herself could provide little color on the company’s immediate future, but she did tell us this: “Due to Reg-FD constraints, we cannot comment on second quarter results. However, we continue to believe in the strength of our diversified Townsquare Everywhere strategy, which we apply in the small and mid-sized markets we operate in. In the first quarter of 2015, approximately 30% of the Company’s net revenue was derived from sources other than the sale of terrestrial radio advertising, which we believe differentiates Townsquare from our peers.”

Here are monthly stock price closing for Townsquare going back to its birth as a public company:
7/24/14: $10.25 (opening price)
7/31/14: $10.95
8/29/14: $11.35
9/30/14: $12.02
10/31/14: $12.61
11/28/14: $12.48
12/31/14: $13.20
1/30/15: $12.14
2/27/15: $13.23
3/31/15: $12.85
4/30/15: $13.66
5/29/15: $13.07
6/30/15: $13.58
7/23/15: $13.77