The Radio Rebound Continues

March 17, 2021

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This time it was Townsquare’s turn to report that, with every passing quarter, radio has its sights set on returning to the days of old – 2019. In Q4 Townsquare’s revenue decline of 3% was significantly better than the 35% decline in Q2 and 15% decline in Q3.

CEO Bill Wilson says Q4 exceeded the company’s expectations and expects to see even stronger results in 2021.

Once again digital was strong for Townsquare with Townsquare Interactive net subscription revenue increasing 16.3% to $18.8 million. 850 net subscribers were added to that division, which creates a local digital strategy for small businesses both in and outside Townsquare’s radio markets.

For the year revenue decreased 13.9% for the company, 17.0% excluding political revenue. Digital revenue increased 6.2% to represent 43.6% of total net revenue for the company. Townsquare Interactive net subscription revenue in 2021 increased 14.4% to $70.4 million

Wilson told investors and analysts on Tuesday that the Townsquare team performed the best when it mattered the most. “Our DNA is local radio, it’s not audio, it is truly is local companionship – providing local information, local entertainment, and local personalities – and that is why we love it and that is why we call it local radio. But although our DNA and roots are in Local Radio, and we still love and embrace Local Radio, in 2020 we became a Digital First company, and our revenue growth in digital revenue and digital profits during a pandemic and resulting recession demonstrated that fact.”

Q1 2021 revenue is expected to be down in the low singles digits. Wilson said he sees great momentum each month and each quarter with the goal being to return revenue to 2019 levels.