Townsquare Media, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, net revenue reached $115.3 million, a slight increase of $0.2 million (0.2%) from $115.1 million in the same period of 2023. The growth was primarily driven by a $1.9 million increase in Digital Advertising revenue, which offset declines in Subscription Digital Marketing Solutions and Other revenue.

Operating income for the third quarter of 2024 was $15.1 million, a significant recovery from an operating loss of $10.7 million in the same quarter of 2023. This improvement was largely attributed to a decrease in non-cash impairment charges, which fell from $23.6 million in Q3 2023 to zero in Q3 2024. Net income for the quarter was $11.3 million, compared to a net loss of $36.5 million in the prior year.

For the nine months ended September 30, 2024, total net revenue was $333.2 million, down from $339.4 million in the same period of 2023, reflecting a decrease of $6.3 million (1.8%). The decline was mainly due to an $7.2 million drop in Subscription Digital Marketing Solutions revenue, partially offset by a $2.7 million increase in Digital Advertising revenue. Operating income for the nine-month period improved to $367,000 from a loss of $11.2 million in the previous year.

The company’s total assets decreased to $565.4 million as of September 30, 2024, down from $652.0 million at the end of 2023. Total liabilities also declined to $617.9 million from $642.1 million, while long-term debt was reduced to $476.7 million from $499.7 million. However, total stockholders’ equity turned negative, falling to $(52.5 million) from $9.9 million at the end of 2023.

In terms of strategic developments, Townsquare Media repurchased 1.5 million shares of Class A common stock for $14.6 million on April 1, 2024, and continued its stock repurchase program, acquiring an additional 0.8 million shares for approximately $8.9 million during the nine months. The company also approved dividends totaling $3.0 million in July 2024 and announced another dividend to be paid in February 2025.

The company is closely monitoring economic conditions, particularly high inflation and interest rates, which may impact advertising revenues and subscription growth. It is considering potential wage reductions and controlling non-essential capital expenditures in response to these challenges.