“We are pleased to report another solid quarter that was in line with our expectations.”
That’s how Townsquare Media Chairman/CEO Steven Price opened his discussion this morning on the event marketing and small-market radio broadcasting company’s Q2 results.
While net revenue was up 2.6% to $140.7 million, consistent with the company’s guidance, net income and Adjusted EBITDA were pretty much a pancake — flat, but tasty enough to satisfactorily accept.
What is perhaps most notable about Townsquare’s Q2 is where its strength in dollars lies: The company’s quarter “was anchored by our Local Marketing Solutions segment,” Price said.
That’s the segment comprised of its AM and FM stations and associated digital products. Local Marketing Solutions saw revenue grow 4.3%, to $90.5 million.
Segment revenue increased 4.8% when excluding political revenue.
“Our results in this segment are representative of the continued strength of our local advertiser solutions and the strength our local teams,” Price said.
Overall, Townsquare experienced net income of $5.56 million (21 cents per diluted share), compared to $5.6 million (22 cents). Adjusted EBITDA inched ahead to $25.3 million, from $25.25 million.
Townsquare’s other significant segment is its Entertainment division, which produces a variety of concert events including the recent Mountain Jam festival in the Catskill Mountains of New York. This segment is the primary reason why in August 2016 acquired an approximately 12% common equity stakeMadison Square Garden Company in the owner of 310 radio stations, 325 local websites, a digital marketing solutions company and a digital advertising network focused on music and entertainment.
Entertainment net revenue moved to $50.21 million, from $50.45 million.