Townsquare Media LLC ((TSQ)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Townsquare Media LLC’s recent earnings call painted a picture of robust growth in its digital segments, despite facing challenges in traditional broadcast revenue and economic uncertainties. The company showcased its resilience through a digital-first strategy, which significantly bolstered its overall performance.
Digital Revenue Growth
Townsquare Media reported a 6% year-over-year growth in total digital revenue for Q1 2025, marking a significant milestone as digital revenue contributed to 57% of the total net revenue. This achievement underscores the company’s successful pivot towards digital platforms.
Digital Segment Profit Increase
The digital segment profit saw a remarkable 16% increase year-over-year, with a profit margin of 25%. The digital segment’s contribution to total segment profit rose to 62%, highlighting the effectiveness of Townsquare’s digital-first approach.
Townsquare Ignite Performance
The digital advertising arm, Townsquare Ignite, recorded an 8% increase in net revenue year-over-year. This growth was primarily driven by the digital programmatic business, which now accounts for approximately 60% of the segment’s revenue.
Townsquare Interactive Profit Growth
Townsquare Interactive, the company’s subscription-based digital marketing solutions segment, experienced a 22% increase in segment profit year-over-year, with profit margins expanding to 32% in Q1 2025.
Overall Profit Growth
The company’s adjusted EBITDA for the first quarter increased by 3.5% year-over-year to $18.1 million, surpassing the company’s guidance range. This growth reflects the company’s strategic focus on digital expansion.
Broadcast Revenue Decline
In contrast to digital growth, broadcast advertising net revenue declined by 8.3% excluding political and 9.1% in total year-over-year, indicating ongoing challenges in the traditional media landscape.
Impact of Tariff and Economic Uncertainty
The earnings call highlighted a significant pause in business activities across all lines due to tariff and economic uncertainty in April, which affected revenue trends and posed challenges to the company’s operations.
Net Loss in Q1
Townsquare Media reported a net loss of $1.5 million or $0.12 per diluted share in Q1 2025, compared to a net income of $0.06 per diluted share in the previous year, reflecting the impact of economic uncertainties and declining broadcast revenues.
Forward-Looking Guidance
The company reaffirmed its full-year guidance, projecting net revenue between $435 million and $455 million and adjusted EBITDA between $90 million and $98 million. Despite a 1% year-over-year decrease in net revenue for the first quarter, the company remains optimistic about future growth, driven by strong digital performance and strategic market positioning.
In conclusion, Townsquare Media LLC’s earnings call highlighted a strong digital performance that offset challenges in traditional media and economic uncertainties. The company’s digital-first strategy has proven effective, with significant contributions to revenue and profit, positioning it well for future growth.