Townsquare Media suspended its quarterly dividend, saying the decision would preserve about 14 million dollars annually. Third-quarter revenue rose, helped by digital advertising and political campaigns, while digital subscription revenue fell. The broadcaster and digital services group cited higher floating-rate debt costs and investment needs as reasons for retaining cash.
Economics & Markets··Morning
Dividend suspension retains cash
Townsquare Media, a US radio broadcasting and digital marketing group, has suspended its quarterly dividend. Management said retaining the distribution would preserve about 14 million dollars a year. It cited the higher interest burden on floating-rate borrowing and the need to fund its digital businesses as reasons for the decision.[1], [2]
The decision follows payment of the previously declared dividend of 0.20 dollars per share on 2 November. At the quarter’s end, Townsquare held 4.6 million dollars in cash against total debt of 467.5 million dollars. Its gross leverage ratio was 5.48 times and net leverage was 5.43 times, calculated using trailing twelve-month adjusted earnings of 85.3 million dollars.[1]
Political advertising supports quarterly growth
Third-quarter net revenue reached 110.9 million dollars, up 3.9 per cent from a year earlier. Townsquare’s growth rate without political advertising was to 1.4 per cent. The quarterly net loss narrowed by about 1.5 million dollars to 4 million dollars. Adjusted earnings before interest, tax, depreciation and amortisation increased by 2.7 per cent to 22.6 million dollars.[1], [2]
Without political advertising, that adjusted earnings measure fell by 7.9 per cent to 20.1 million dollars. Broadcast revenue edged up by 0.4 per cent overall, but declined by 5.2 per cent on the same political-advertising exclusion. The nine-month net loss reached 42.8 million dollars, with increased impairment charges affecting the period’s result.[1]
Digital advertising grows as subscriptions contract
Digital advertising revenue increased by 12.7 per cent, including a 22.5 per cent rise in programmatic advertising. Total digital revenue grew by 6 per cent. Revenue from Townsquare Interactive, the group’s subscription digital marketing business, fell by 8.5 per cent. During the first nine months, digital operations supplied 57 per cent of revenue and 56 per cent of segment profit.[1]
Management set fourth-quarter revenue guidance at 107–109 million dollars. Its full-year revenue range was 430–432 million dollars, accompanied by an annual adjusted earnings before interest, tax, depreciation and amortisation forecast of 87–89 million dollars.[1]
