Townsquare Media’s push for diversification — including broadcast, interactive, video and festivals — delivered solid revenue growth for the fourth quarter 2016. The company also reported steps taken to reduce its over a half-billion dollar debt load.
The broadcaster’s diversified business platform accounted for an overall net revenue increase in the 2016 fourth quarter of 5.8% to $119.5 million compared to 2015. Its radio and digital product segment reported Q4 revenue of $91.3 million or a positive gain of 5.8% compared to the year before. That marks the 12 consecutive quarters of positive revenue growth for the radio business.
Townsquare, with 312 radio stations in 66 U.S. markets, saw its entertainment division revenue grow despite poor weather conditions for some events across parts of the United States in the final quarter of 2016, the company reported during an earnings call earlier today. For the final quarter of 2016 entertainment net revenue grew about 8% to $28.2 million. The broadcaster’s festivals and North American Midway Entertainment (NAME), accounted for just under a quarter of its total revenue.
Net revenue for the broadcaster as a whole increased 3% for the year to $516.9 million compared to 2015, and adjusted EBITDA increased 4.1% over the prior year.
Steven Price, CEO and chairman of Townsquare, said the company has strengthened its balance sheet through debt repayment “that reduced net leverage from 5.5x at the beginning of 2016 to 4.9x at the end of the year.”
As of Dec. 31, 2016, Townsquare was carrying $579 million in debt.
Townsquare Media expects net revenue of $525 to $535 million for 2017, according to today’s earnings conference call.