PURCHASE, N.Y. - Townsquare Media, Inc. (NYSE: NYSE:TSQ) reported fourth-quarter earnings that surpassed analyst expectations, although the company experienced a decline in revenue compared to the same quarter last year.
The media firm announced an adjusted EPS of $0.34, which was $0.08 higher than the analyst consensus of $0.26. However, revenue for the quarter decreased by 4.6% to $114.79 million, compared to $120.3 million in the fourth quarter of the previous year. Despite the revenue decline, the reported figure still exceeded the consensus estimate of $111.86 million.
The company's CEO, Bill Wilson, commented on the results, highlighting the strong cash flow generation, which saw a 35% increase from the previous year, reaching $68 million. Wilson attributed this performance to the robust profit margins across segments and the company's focus on digital growth. He also noted that digital advertising and subscription digital marketing solutions contributed to the growth, with digital now representing 51% of the company's 2023 net revenue.
Looking ahead, Townsquare provided guidance for the first quarter of 2024, expecting net revenue to be between $98.5 million and $100 million, and adjusted EBITDA to be between $17.5 million and $18.5 million. For the full year 2024, the company anticipates net revenue to range from $440 million to $460 million, with adjusted EBITDA guidance set between $100 million and $110 million.
The CEO expressed satisfaction with the company's performance amidst a challenging economic landscape, emphasizing their local focus and digital platform as key factors in outperforming competitors and gaining market share. As a nod to the company's financial health and strategy, the Board of Directors approved a quarterly cash dividend of $0.1975 per share, marking a 5.3% increase from the prior dividend.
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