Townsquare Media (TSQ) 10 May 232023 Q1 Earnings call transcript

Good morning. And welcome to Townsquare Media’s First Quarter 2023 Conference Call.

As a reminder, today’s call is being recorded and your participation implies consent to do such recording. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. Instructions] [Operator

would call, to President. Claire I speaker the to today’s for Yenicay, like that, you introduce first With Executive Vice

you, Townsquare’s morning joining good operator. Thank Thank for you to us quarter first everyone. for financial update. today And

are call Stuart CFO Vice on Executive our our Wilson, today me CEO; Bill With and President. the and Rosenstein,

expectations, These note during subject this relating that are than other information including statements that, to certain detailed in from Safe call, XX-K SEC. statements statements current including based risks under prospects. to Litigation and Please Harbor the on filed are historical could the Act to These plans considered risks forward-looking results future Provision those are company’s but provide the that XXXX company’s of actual differ statements Private these subject are we on and may beliefs and and Reform information, conditions, the make materially report Securities Form with uncertainties, to uncertainties statements that the cause statements. reflect annual company’s the of

EBITDA, reference to our will in the Bill website available go current discussion our our encourage to presentation, also adjusted this and on reports financial our refer contained as Such used be in as corporate discuss non-GAAP measures our income quarterly, those also and in income, financial year-end net of we participants should measures, non-GAAP certain the website. to profit I slides morning. all adjusted including with would conjunction investor may all remarks. some may which download and We operating adjusted information during

Bill to like time, to I At turn the would call this Wilson. over

you this joining thank us morning. for Thank you, Claire. And all

with our pleased first quarter We share to you today. results are

Digital the the outside impacted of our the face that top solutions headwinds Local demonstrate a focus local Digital our sector, we markets Media of Although on first exclusively and with our Advertising quarter validate results First and strategy the entire platform strength have media XX. same

X% to quarter local on first revenue adjusted be plus XX% above had of first particular high actual we adjusted expected X%. up the and year-over-year, to that end Advertising the also the and to at year-over-year, XX% EBITDA year-over-year, guidance. plus that we growth strength revenue and over negative finished In better solutions. first guidance in net exceeded decline it guidance approximately in the that provided EBITDA negative would of we net anticipated due total result revenue, million flat We $X had the negative would and Digital our XX% at revenue Townsquare’s, call, last our quarter, control, was quarter our

XX% is total approximately yet adjusted digital media operating returned income that our our levels, XXXX, our while pre-COVID profit both results XXXX many XX% our derived our net revenue performance. were not solutions. have In noting companies and revenue our and worth above XXXX from to are company’s of It of total

solutions for for the with from was revenue. to due milestone quite quarter net to repeating, our with This the quarter XXXX total our operating XX% first Digital digital our Advertising grew digital margin XX% and be digital in frankly XX% plus XXXX, XX% QX plus result, came of plus be also contribution a year-over-year, quarter of our grew total of and bears X% a and first as profit its increased to of Total XX% revenue the resiliency income. profit a adjusted X% digital profit of XX%. company year-over-year this grew sources, first In our And revenue industry, of our and point year-over-year. of milestone revenue our revenue our strength new achieved

advertising the Townsquare for during other of Advertising Digital forms at large, for outperforms downturn. industry advertising and an Historically economic

on our Advertising following to businesses shared I in rebounded by the revenue the shutdown Digital growth pandemic due quickly, example, last as fourth XXXX, across to the Townsquare’s For of earnings COVID-XX of XXXX. returning country, call and quarter

Digital according S&P traditional while forms print, Intelligence, declined. from States advertising Market XXXX year-over-year including peers. outdoor, to the media plus all Townsquare’s platform other Advertising sets in Global and XX.X% United local across cinema, our digital us radio, apart television of increased

As during approximately better competitive highlighted the we a XX% and digital are downturn. our times average therefore on Slide set than revenue, XX with situated X.X industry

outlined challenges throughout Interactive, our quarter, XXXX. faced on As in digital first first X% expect anticipated will revenue on call, Interactive net year-over-year Slide Townsquare continue I the Townsquare noted the in decline offering, marketing subscription our which last solutions as XX, we quarter.

target As than revenue. independent with a million are clients annual SMBs $X less our reminder, in

to current subscribers. this of higher the This labor vulnerable environment, our in shortages, demographic contributed cetera. particular inflation, high to rates, battling wages, et period macroeconomic higher among higher is has interest attrition a Unfortunately,

in due to as Interactive Townsquare work In but service and to return has our in increase addition, addressed turnover last we at an we also our to XXXX. related attrition operations mentioned employee call, faced contribute mandate did to in client customer issues been This on largely our year-to-date.

can issues Although the to and upon take us step a fundamentals back of number moving highlighting opportunities our forward. we believe platform, analyze that caused challenging of improve a we service these

very will platform currently, of customer muted will client service term, but financial Interactive changes thus contribute and of important in a continuing Townsquare for have XXXX. performance made the our believe to start number the we the the changes long a clients that to beneficial be retention Since to and our in we year

the in to invest in facing confident long-term Despite as the on incredibly growth pressure prospect future. the such, continue the second business, in its we short-term quarter, line, is and of Townsquare long-term X% top Interactive’s which still are negative

to team in Interactive Townsquare in office second team The Charlotte. growing is simultaneously our while now we continue and Phoenix there open grow our

huge very long-term, Townsquare profitable growth opportunity, and is nine With an customers superior that for million market a geared customer nearly am built on outlined success. XX, for and a a very, growth addressable product as target Interactive team Slide market of I offering, service future confident

Just top bottom strong line XXXX be XXXX, Townsquare reset in growth. strong be us aware a Interactive at returning year and it to will that for with line

Digital outlined segment, was increasing more any revenue Slide on XX% even in quarter again current driver macro impressive growth environment Our plus first and the with XX, impressive in largest solutions year-over-year, once our environment. Advertising

First average quarter in an plus profit in due growth size. revenue growth XX% at increase year-over-year outpaced part to order

unique digital audience, we our the profit our efficiently In to audience, addition, higher month an of have monetize online all-time to an in grew to increasing average first per more million quarter XX enhancing engagement, due and able high been visitors advertising. margins in which

Advertising our a sophisticated products campaign us client giving the media ongoing relationship and Digital and hundred and of higher experience retention in optimization client success customer to believe are entirely to design, solutions, digital client one which better the a pitch, to are to first reporting We control translates insights, in-house, buying rates. and which percent from we

the visitors addition, give XX we XXX entertainment audience our news ability our In to monthly portfolio websites, of data our million collect of leading to and have over unique strategic apps, entertainment unique mobile analyze with XX party first and from local our XXX clients a detailed and and purchase real about leads and interest behaviors, strong websites. that results to insights advantage and music intent, competition. drive over local us and audience unique for national This ROI consumer our

competitors XX focus markets on media driving of success do players, States. is most we from rarely large large differentiator outside Advertising top party markets, have face businesses. significant the vendors. significantly we instead factor in digital our out-of-house a providers, broadcast top XX players competition This solutions less strong not in-house are we importantly, programmatic our key and cities and utilize for the our solutions the for business Another of digital and digital marketing third face Digital our and United is importantly Because

advantage The be own our in that solutions Advertising breadth cities which in fact our market. is our platforms strongest company. a it is to in difference with Yet the a own outside tech the growth is any the in-house Digital XX, size of digital driving maker, we top combined significant engine the competitive

is local over national volatile an downturn. advertising, majority which the historically during addition, advertising our particularly revenue economic XX% than of is less In advertising,

For to others approximately our quarter revenue extremely but approximately as example, doubt X% hurts, hurt that continued advertising with weak in accounts broadcast advertising national of compared doesn’t total because No down be national as much year. revenue to decline broadcast XX% for prior that revenue. the first now

contrast, performed our broadcast QX. much positive In advertising local better it in as was

confident to mid-size advantage that in-house, focus of will in industry are advertising our investment our full strategy, strong digital original markets, our data continue with and marketing small- We to content strategic favorable solutions, drive growth. suite first-party on trends, footprint together

in ended during digits. low-double including only continues interest below a on operations of flows of first even with our $X million the I our very quarter. to a point, quarter. of that bonds the challenging like continues year the and hand, well QX, with par million from also that generate fact $XX advertising to and pacing also open market first down in reinforce million flow repurchasing bright million macroeconomic our is $X cash up cash strong $XX To quarter on conditions, even the to perform at end, our the cash business after would $XX spotlight payment We from making the on million price share digital current

due And payment as is a not reminder, our next interest until August.

fixed balance which times dividend of to our and no are $X.XXXX we the of until X% And share Board cash We per at of for equates an quarter. quarter returns on our million current basis, capitalization the net hand generate equity share a strength In first Xst, $X.XX end yield. of end, annual shareholders. our would confident addition, which XXXX our per and interest Directors very of on a X.XX X.XXX%, August remain of leverage approved with approximately on that $XX pleased be today rate can cash with sheet payable we of current at attractive maturities

was during well to supported of which ongoing advertising record with of the and our XXXX, Overall, are our very as in revenue during perform record to in matter which record that and solutions. COVID believe again as strength well belief we and we the A platforms topped severity. positioned a XXXX XXXX rebound digital the then to or profits downturn recession, and profits performance is no our by worst duration continue

our over to second our as quarter go well Stu Take results And call as to provide away, in turn now like to you it to detail I'd guidance. more even over Stu. the

morning and morning. Bill, good everyone. It's speak to you to you, great this Thank

that revenue, adjusted in due local report in revenue. and and to exceeded advertising revenue growth pleased our particular to We're strong net we EBITDA advertising digital guidance

to million. $XXX $XXX to First was quarter our above prior million X.X% the of million, $XXX.X which period revenue over increased year net guidance

net both revenue EBITDA $XX.X adjusted adjusted an above million $XX.X quarter levels, XX.X% $XX.X to of has EBITDA Of achieved declined remain First and of XXXX which peers. year-over-year many local guidance accomplishment our not to our note, pre-COVID been above by million. media million

Advertising with part due the seasonality. net year-over-year. revenue approximately margins part X.X% line revenue a First and XX% with in quarter, of quarter in expectations our decline dipped in Broadcast declines to in Broadcast due to decreased profit to first

Our first year. margins are lowest the for quarter the Broadcast typically profit

As were our noted significant we down and approximately first in national the be and to approximately declines on revenue call down broadcast down second revenue quarter continue expected in last the pacing XX% with meaningfully year-over-year XX%. quarter

first as much the offset proven broadcast and has the thus local Local national declines. has broadcast broadcast to partially able growth was historically to case, resilient more be been quarter

Bill to with second for projected total quarter, We the had be Interactive the digits case down expect are Solutions will broadcast expect in be Digital remainder revenue segment the Marketing outcome discussed a quarter of Subscription which currently similar as challenging a Townsquare we mid-single earlier. the XXXX again. in

net quarter, revenue decreased and first to prior year-over-year. decreased as the the In XX.X% year, X.X% compared profit

incremental growth long-term do to and in This the to we quarter. second prospects rent location such to first support sales Interactive XX% of our in our we some as teams Townsquare the the led slightly Phoenix. expenses invest Given profit our margin in and continue at have dropping

revenue currently noting X% down is worth it's QX. in pacing Additionally,

again to the Interactive growth shared while as first have we the call, profit increase QX the driver as XX% for location. Townsquare future This increasing sizes of of Ignite newly and margins we growth year period and XX.X% largest expanded order we to XX.X% XX% quarter our owned prior operated in advertising margin year-over-year digital our XXXX year-over-year. in As was increasing suppressed in with net our profit efficient Townsquare invest expect websites. to more to the average segment's monetization and compared we in revenue of be ramp continue open to Phoenix segment last the on at due

We XXXX our profit beyond. of expect be the segment digital advertising will and continue in and biggest to driver growth revenue

the comprised of increase the increase of which an the to category approximately The first revenue of which year-over-year. activity prior $X hosting million was more increase was and quarter generated million $X.X $XXX,XXX, quarter, approximately other in of in profit year. Live Events year-over-year is Our of an $XXX,XXX of XXXX than due first events

In $X.X quarter took million. charge XXXX, non-cash of to first licenses of a our FCC the we impairment

As non-cash impairments given way value the these are be our down continue to I we covered on FCC calls licenses the previous over expect to determined, of written time.

calculations more rates our profitability impairment. that quarter purchase price advertising future we was are station to we old use write This roughly the projections, the and bought licenses which accounting non-cash impairment the when first factored a broadcast interest declining radio both allocations The of these down purchase prospects. nothing charges third-party made cash by price decade assumption on caused affecting expenses, rising ago. FCC are decade has for bearing or evaluate into no position, There only operating revenue, more the or than operating assets our of

net of million loss share. $X.X impairment net Our the $X million million largely The due to to non-cash per was a $X.XX decline $X.X declined charges. income or

our cash XXXX, I leverage which and the emphasize, As year-over-year flow net up generation. quarter million We Bill company's million the our $X.X we At of is in highlighted, with have the flow first remained X% consistently cash first like history, of would of again quarter at of X.XX generated lowest the and ended quarter $XX.X in operations leverage from times. to the net strong cash. end

We price bonds quarter. repurchase approximately at below the our $XX.X million of a first par in

We priority profit invest organic, revenue competitive invest Townsquare one support markets content that local engine. particularly number continue in to Top business our our our sales, XX teams, to the in outside our technology, plan digital digital and our growth advantage specifically order our and growth to to to investments support maintain always, in As product internal Ignite strong and in Townsquare our Interactive businesses our cities. in

mentioned on dividend $X.XX earlier, XXth. of payable as to per of annual approved has Board annualized August which an $X.XXXX to Bill As shareholders share June per basis dividend of record our The Xst payment share, implies a an on outstanding to price. equates approximately characteristics approximately invest dividend business X% our on $XX us and current continue strong share believe our allow million of current in based a flow will shares our and and the yield new We cash to support dividend. of

income amortization We'd carryforwards $XXX you that to face or tax provision and intangible the taxes GAAP on tax of We tax remind statement like federal for substantial attributes only. income NOL more statement related million significant purposes included maintain assets. the to the including than financial for of shields any our benefit other is of

approximately we taxpayer We continue until will XXXX. cash a to that believe material be not

our to Turning quarter second outlook.

that in growth declines X% will million. by double-digit Townsquare led offset digit mid-single million anticipate We declines by second expect Broadcast to advertising national in net steep Advertising $XXX negative be digital be We and $XXX a between quarter revenue Interactive. decline and revenue

million. second and adjusted $XX expect We EBITDA between quarter million be to $XX

For revenue the year $XXX reaffirming be that expectations full million will $XXX are million. our we and between

We reaffirming adjusted expectation be $XXX million. EBITDA are between $XXX also XXXX million our and will that

to now turn And I will the call over Bill. with back that

of of platform. on in the confident and XX our our joined macroeconomic greatly growth are we long-term reiterate who potential United this to digital the in profitable focus navigating it. us you closing, local appreciate I digital are of In want everyone Thank Stu, and first Top our number in media although markets thank headwinds outside you, to morning. we a We the that XXXX strategy, States,

achieve were of being guidance, ever. the company's would In year we fact, history the the our full if in best year midpoint profit profit our to its be second best last with

In addition, our allow shareholders to dividend. generation us continue will our reward strong cash to via

team's success directly innovation the that each effort, day. our As without and always, our long-term in the growth we wouldn't Townsquare and commitment passion confidence driving have is

for I time thanks the of our be appreciative of again, our tremendous taking you updated to and to could their And each not more QX team be work. results. on

open at this time and line any questions. all Operator, for please the

first from line Kupinski of Thank you. Your Michael Please Noble [Operator question go Instructions] Capital from ahead. the Markets. comes

taking for the questions. you Thank

your performance. all, First on of congratulations industry leading

then And you last Townsquare quantify was impact of gave the And in that. way your the revenue market in difference versus Interactive out from So was coming of regarding terms Townsquare quarter your there was mix in in-market of that I also the of any there mix; wondering indicated Bill, revenue of a can, versus actually in-market if that opportunities? in segment. you to if some revenue I is much out terms retention Interactive how rate from you market? then is up wondering client the

accolades and our rest you into quite conditions, company, year, so Michael, still for the is the feeling ever morning growing standards, with terms a but quarter. good the for Well, plus macro little of we're in proud thank the even of revenue three was of QX We're below the and the bit confident that. the highest going

In couple your terms of questions, there. in a

So $X almost a, challenges our we in all obviously we've for now. for target deck in this years things. on higher call with are transparent inflation, wages, fact and Townsquare revenue. high call that of would million the clients three shared really And those obviously given significant last very environment and the interest a about about Interactive, been And be higher reset investor clients that you those our macro as it I'd less facing year than that we noted

the optimism – April were since NFIB Businesses, National was the said saw lowest the I XXXX. actually the small businesses the ever Independent January for that of lowest yesterday Federation in

in lowest decade. the So obviously last the

the, that the for small, them, just in call I share really conditions is that I challenging. small businesses almost micro So

So eight shared in ago, customers on we as about QX we on end asked who call just you weeks our discounts our that giving year and – to noted March were of struggling. were

seeing that is slightly. revenue say the I in but seeing for we're line number transparently only QX again, of tick-up X%, because pay given higher relates business. negative in given years, with of essence go as it closing. X for that we out of declined would in our guided cost we've conditions was it Interactive they the more a just the And businesses number reason actually with I'd and So as shared, struggling almost is number And their operating revenue we're cancel put businesses as I'd of businesses characterize as and their of that. marginally. one can't business businesses macro bills. terms impacted it these overall of more the – Townsquare

We've in which declines, card day is of indicating struggling a businesses also their day. to tick-up seen again to credit meet these

where that gave we provided tick-up really take at in improve the our it it's some step discounts quarter. some and everything and normal back, So fully we be or we'll QX of were this call a doing as April. through – it, this to and accelerated I'd through I the opportunities latest. challenge think really think end doing provided that we in And of service conditions, a a us since March in been we disguise but decline. out little noted And I in client we're will of macro return in ways that on the strategy in in a I also opportunity, everything our Really, the doing, to attack the on change XXXX business say the of an we blessing year the depending at by was attrition decline and it challenge or beginning and saw some marginal we've customer not were think QX, least

of same. rate the It's market in Your no And of rates we roughly other across XX% our terms retention mix verticals. in are is the XX% out as of well the question really was pretty of It There's similar clients. business and quantitative around verticals. We're in geography difference our the market roughly is XX:XX, markets. retention of the in-market, out similar. as of analyze pretty out out in-market, how markets,

So you you, other other, on talk interactive our any questions to other in case to any had of Michael, back business. parts I'll or

was your shaping A more. number political for of have that Just you're about already seeing give maybe you that's political in. and seeing up two whether us if can wondering if or being that and they're second companies indicated just coming booked the thoughts not half? I presidential how

obviously be position is of a level of And I last that have are position, to that bonds you then uncertainty to free generating feel flow. there liquidity need to a time par? they're back due and that maybe below the lot aggressive buying Is and more regarding you a think or cash healthy retain given very cash retain you cash now question you you the in trading be the economic cash do that would

Thank Yes. always. as the Appreciate Michael. you questions

have political media, obviously in presidential side seeing dollars. I dollars early some political there what's not us, for local uptick seen you're the TV happening am on So following we particularly an yet.

have not that. seen yet We

is Our the full $X.XX $X million for of anywhere from political. to million expectation year

So pretty modest. it's

year All are strong. quite next indications for

XXXX in we're going political terms the optimistic So there. quite of for in revenue

be QX, strong of cash the from as free cash $X as we our Stu noted you generated in operations lowest million more million couldn't at million flow ever net In and position, after $XX said with of terms cash pleased actually of bonds, hand flow we cash payment $XX lowest our leverage total X.XX. of and $XX purchasing on leverage and at of we million, interest X.XX had and

$XX million terms So anywhere question, with $XX would business now, the million comfortable what given of your we're operating conditions comfortable in we're of say in at. I macro between to the terms

priority flexibility as cash would allocation. investment bonds dividend continuing after continue support to to a yielding in internal next to your well and dividend if a – after point. have so of we Even terms the of such we back be lot buy our also paying as to to probably So that's high choose our

QX local because and want to in particularly expect the we just pretty I XX% our margin, profit to to would business would say that broadcast onward. markets But down – that I in I profit share Stu because connection. XX, high-XX% normal companionship broadcast strongly that believe mentioned levels in did note in other tick with we Top margin. to the The margins our return QX continue just thing outside

So terms again, it leverage have operations continuing the talks just flow about to that you the we opportunistic in cash noted, as bond of high market Michael. be and in

think for was your So I that. that last question. If so, you thank

Thank you.

others, you have If them. any happy to take

it. Nope, you. that's Thank

great a Have day.

you. Thank

comes Research. from next go question Your the Jim ahead. line from Goss of Barrington Please

been and get Thank where to it on would you there, through. headed good does a that complement morning. always deck you've slide environment of I in context a is you're tougher frame you where but the and

some think those was whether work I And new weren't what return is made to want to they So training about where and it of to government? ask the staff to the if get by the if they getting the do due in bringing be? decided to up to people need TSI worth turnover the I speed looking more pick about always time employee order? you're the being about it's Or you a talk subsidized you'd I some time employees is But back if wondering little at. and likely you you'd comments

and the as business, deck Always started spend particularly your you your diversifying Appreciate a point, it legacy to the the of to mission time it, on the good presentation. you. when We hear investor and Jim. really broadcast TV and from on business slide in the only Appreciate local with we company Top but not to XX. wanted the really principally media just first outside media which about local company we and where radio broadcast are we is what started in talk focused a today, or importantly, digital feedback

call think importantly, prior when incredibly on and combination you being hedgehog staying about to talked We've XXXX in outside one was and of about, our doing markets. knitting And minded disciplined company like the to as then something being of I from you are Top the are these and you completely feel digitally XX earnings these at incredibly the we're formed just money. passionate doing local day solutions but concept the being grow. differentiated markets make of that We're with differentiated outside XX we the that's And or more businesses something probably strong importantly doing lot is a can what in to top help completely Townsquare.

you pivoting question, your I appreciate, to Townsquare correct. are which So, Interactive

think on that one these of shared the to Interactive. at is we And the things had order time our I was we given as to the impact incredibly do – it mandate well a Townsquare perspective transparent. return try work as only really the calls had that really be to our follow-ups last it from company-wide

think our there. I over that's because employees office it's Charlotte with in largest XXX

top performer, achieved did to other mandate would the you thing not a And did again, tenured you have a or been people have think was it in that not work everybody not It it. who have Jim, standpoint. was if performance on share, I I were may as return for I else shared this to top the last really call, that yet

question, to not, in you remotely, to needed who these specific because needed we and take training, your people more them are be clearly more therefore So, coaching back, can would working do essence, that. hands-on

did found we hybrid individuals becoming who want role. And us not it much For stay a at come or even coaching to not hybrid to role. a for effective in chose in a least more person these

a role, for So, if back. wouldn't. in do performers, they coaching that's come them good we my they be they would. we would to, But and XXxX, hybrid otherwise take as If remote and were would relates answer we to it wanted

have asked these you would people days. rehiring who take The a continues left, does long roughly headcount was, how say we other I question are it to because given increase? XXX our

maybe a people XX, spend XX. are adopters day But we lot earlier we Some bring obviously of somebody XX, training. on, time and when

our the trainers, to one I investment it's coaching personnel is I quite at but and company, honestly in and across only think, differentiations time of for Interactive, and Townsquare not second think none. the dollars,

well. quite in invest do serves we bit us that a So it and

of party Digital and influencers you it's I things a and XX investing one the on out. XX about our it's and our a We've look us kind years, have our that original being at XX% we audience patient. the unique and but of like to now allows visitors XXX in-house and people really our at million being that's our think growing social And operated proving contributors pride having is owned I content for mean, it talking everything is first is just and ourselves been differentiator. clear on incredible, flywheel. data strategy Advertising

turn case it back you questions. you have to Jim, other So I'll in

Okay. Well one about radio.

a smaller course. drew larger markets, markets, You of distinction between

there Within Is do And markets you difference guide the between M&A that of the really smaller mid-size versus markets? operate a consideration? the lot any group within. does

Yes, we just U.S. in find what really smaller is markets top XX cities are outside the the different. clearly markets –

there markets that Rapids behaving, Tyler, honestly, As or it is those like are no Grand or We portfolio, they Texas really But be for markets. XXX, markets to relates XX a some meaning are us our it to like have quite large type Paso market difference. and or Montana. size do Buffalo of El Missoula,

QX of betting in share has been was $X What QX. our shared down brutal, Sports a would I part national that. in is betting I XX% down big was million we advertising sports mean As alone.

for trends are continue pleased positive our for those that very We was QX. broadcast And local quarter. the

trend trending Stu up. continues as So local in XX% to is QX our and advertising, national said, over I down think,

think relates month We're on the down most say of markets and important number in news this as thing filling size by void. before call, markets. the this the just of about is talked truly shutting we've continues is literally the deserts. It I month our size to would newspapers I

our results, times important well X% only a the eight our a) I perspective. are is big we over we're serving our information first have to that's total our audience think, need, industry the performing we also think, a what's community importantly, versus the national an from part to results broadcast driving: providing on that And communities. broadcast of speaks revenue. advertising quite of because that air, but fact are websites company, Obviously broadcast I fact and digital our a trustworthy The

national what in it or well. doesn't and we being in local. digits control call, as that's the to advertising we are that on business if you hurt fortunate XX%, to recognize said national And much double We very I local continues nearly XX%, control if your are that as hurts, want of it advertising. as perform although you we So, broadcast XX% are

your consistently But Michigan; and lot Rapids, Battle original see pivoting they're back to performing Michigan question, a difference across Kalamazoo, that. Creek, market between or don't Grand a we like of

a us size market big or indicator really of So anything. not variance an for is

one. Okay. One last

smaller management with You those markets. capabilities Is markets the can relationship might that you outside you have within business your Ignite draw and a the you and competitors share that you markets differentiate to data distinction there option of and some with generate things where of your make a which you with a rent that sort with those even buy operate of sort in do of some the possibly areas? have model of

Jim. question, It's one actually point. evaluated, Great something we've tested at actually we

that to not continue will decades years organizational for performing we XXXX, Stu growing been in many and the is our profit XXXX of and some in grew of of in incredibly Digital Our XX%. of But the terms compounded XX% actually now end many the this if beginning We has years be just QX. has adjustments business, as made noted, personnel positivity well. for Advertising at structure revenue

million component is XX%. Advertising Digital profit, is and $XX our of largest now Our margin, there XX% the which at trailing income operating XX-month

it XX% XX%, is and quite So of as all our about differentiated. Digital operating you of think being digital income being Advertising

about So will we've short although We're we go it, continue now. there and to The to it's renting evaluated evaluate. point answer to opportunity, not going your couple is things. an is a there

these the data XX the data, using we've unique though our visitors, campaigns our that we've million first local insights inventory help create monetizing internet, party is are benefit reasons our even footprint. the fact got own to first of got we're of of trusted the successful from that One across we're these party influencers outside

the a much probably looking best and now impact to on for discussion performed each using because all than time it's and investment before campaigns they is us perspective, client And enough ROI deploy pieces performance AI measure I early then think, positive return starting the more evaluate days early launch of of up we're But because don't that one outsized artificial from our bring have are that described I example what instead that scratch get from as that at campaign. the although to starting certain to too of key And an of extremely advertisers. to want I we quickly based last on intelligence we of indicators we intelligence shared, I we the the that into recognize. having artificial call, on time. don't

that are forth, lawyers the, financial now And Advertising, or deploying our saying, funnel through so services or X% solutions. of forth. we're all not impacting we're performing for top XX% auto full and top Digital or across the estate so and for our only [indiscernible], AI that's or running real campaigns okay, but And here that

solutions that that I strength Kupinski’s day-to-day, you our third to training media – the we across a and So trainer Townsquare when local with leadership truly honestly, outside we leadership didn't takes didn't just the thankfully that and this lot we divisions across local What that tested leadership best just at tested question, footprint, our renting coaching, we companies companies believe going in, need that found, quite have brought need of And the of best have we Michael we partnered And you the motivation. we of markets. parties. back a though leadership. they in other that and we with. our and our to find day-to-day the even have

to success market think will that are it we our And selling we if footprint. our now know testing ten used sell sell we back in only footprint. So, start three, we you you Ignite, market of of the Solutions I and did Jim, find four Townsquare our local right that to testing outside are outside after Only clock footprint. start years local test to years, you will Interactive roll now we with

companies, today with over companies today goes next opposed so in Ignite, as are going partnering the see So, markets print to outdoor put months. XX other offer not and radio forth how that we're salespeople and companies, where television to to we companies,

very it Jim? answered Any other for I astute questions, you. So and question hopefully

No, a that'll do lot. for it thanks now. And

it. Appreciate Jim. you, Thank

time. Thank call now to any I'd you. There over for to Mr. Wilson turn back are closing the Bill no at like remarks. further this questions

Thank you very much, today. operator. And thank you to who in each and every one dialled

the importantly, we've think can as tell of confident and the done you most not XXXX, we things for to year and past going months probably six hopefully over reaffirming that impact to have look the we're As but rest this only are some we XXXX our guidance, of quite outsized – onward.

focus First And our our and Digital and on moving our you Q&A, top heard XX confident our leadership in combined couldn't earlier, throughout strategy forward. as investment coaching, we with and be the think, noted markets, this as more we team, outside I

you to So now. great look thank joining in Everybody for day. this three We months us forward from morning. have a regrouping

Have lovely Thank call you, this lines. concludes day. thank Ladies you and ask for please gentlemen, sir. for participating that and your conference a We your you disconnect today.