Q4 2023 Townsquare Media Inc Earnings Call

Operator: Good morning and welcome to Townsquare Media's fourth quarter 2023 conference call. As a reminder, today's call is being recorded, and your participation implies consent to such recording. At this time, all participants are in a listen-only mode. A brief question and answer will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Good morning, and welcome to town Square Media fourth quarter 2023 conference call.

A reminder, today's call is being recorded and your participation implies consent to such recording.

At this time all participants are in a listen only mode.

A brief question and answer will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad with that I would like to introduce the first speaker for today's call Claire <unk> Executive Vice President.

Claire Yenicay: With that, I would like to introduce the first speaker for today's call, Claire Yenicay, Executive Vice President. Thank you, operator, and good morning to everyone. Thank you for joining us today for Townsquare's fourth quarter and year-end financial update. With me on the call today are Bill Wilson, our CEO, and Stuart Rosenstein, our CFO and Executive Vice President. Please note that during this call, we may make statements that provide information other than historical information, including statements relating to the company's future expectations, plans, and processes. These statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from these statements.

Thank you operator, and good morning, everyone. Thank you for joining us today for <unk> fourth quarter and year end financial update with me on the call today are Bill Wilson, our CEO and Stuart Rosenstein, our CFO and executive Vice President. Please note that during this call. We may make statements that provide information other than historical information, including statements relating to the company's future expectations plans and.

Prospects.

These statements are considered forward looking statements under the safe Harbor provision of the private Securities Litigation Reform Act of 1095.

Subject to risks and uncertainties that could cause actual results to differ materially from these statements.

Claire Yenicay: These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties, including those that are detailed in the company's annual report on Form 10-K filed with the SEC. We may also discuss certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Operating Income, which we may refer to as profit in our remarks. Such non-GAAP financial measures should be used in conjunction with all the information contained in the quarterly, year-end, and current reports available on our website. I would also encourage all participants to go to our corporate website and download our investor presentation, as Bill will reference some of those slides during our discussion. In addition, we also issued our annual shareholder letter today, also available on our website, which we encourage you all to check out. At this time, I would like to turn the call over to Bill Wilson.

These statements reflect the companys beliefs based on current conditions that are subject to certain risks and uncertainties, including those that are detailed in the Companys annual report on Form 10-K filed with the SEC.

We may also discuss certain non-GAAP financial measures.

<unk> adjusted EBITDA, adjusted net income and adjusted operating income, which we may refer to as profit in our remarks such.

Such non-GAAP financial measures should be used in conjunction with all the information contained in the quarterly yearend at current reports available on our website.

I would also encourage all participants to go to our corporate website and download our investor presentation as bill referenced some of those slides during our discussion. This morning. In addition, we also issued our annual shareholder letter today also available on our website, which we encourage you all to read at this time I would like to turn the call over to Bill Wilson.

Bill Wilson: Thank you, Claire, and thank you all for joining us this morning. It's great to reconnect with everybody today. We're very pleased to share with you that Townsquare's fourth quarter results met or exceeded our previously issued guidance and that our full year results met the guidance that we issued at the start of 2023. Although 2023 was a challenging year, I am proud of how the Townsquare team navigated the progressively challenging economic landscape. Macroeconomic headwinds were fierce, as rising interest rates, inflation, and wage pressures weighted on consumer mindsets and advertising budgets, causing an advertising recession.

Thank you Claire and thank you all for joining us. This morning, it's great to reconnect with everybody today.

We're very pleased to share with you the town squares fourth quarter results met or exceeded our previously issued guidance and that our full year results met the guidance that we issued at the start of 2023.

Although 2023 was a challenging year I am proud of how the town square team navigated the progressively challenging economic landscape.

Macroeconomic headwinds were fierce.

As rising interest rates inflation and wage pressures weighed on consumer mindsets and advertising budgets.

Causing that advertising recession how's.

Bill Wilson: However, despite these challenges, we outperformed competitors and gained market share, primarily due to our local focus and our digital platform. We carefully managed the business so that our cash flow from operations increased by $18 million year over year, or by 35% to $68 million, and we initiated a high-yielding dividend due to our strong cash flow generation. I believe that our performance over the past several years has demonstrated the efficacy of our digital-first local media strategy, validating our focus on local markets outside of the top 50 U.S. cities, and reinvigorating my confidence in our business model and our path forward. In fact, our confidence in our current capitalization, the strength of our balance sheet, our free cash flow generation, and our business strategy has led us and the board to increase our dividend by plus 5. In 2023, net revenue, excluding political, decreased just under 1% year over year and just under 2% in total to $454.2 million, the second highest revenue amount in Townsquare's history. Adjusted EBITDA excluding political decreased 9.1% year over year and was negative 12.1% in total to $100 million.

However, despite these challenges we outperform competitors and gained market share primarily due to our local focus and our digital platform.

We carefully manage the business on our cash flow from operations increased plus $18 million year over year.

35% to $68 million.

And we initiated our high yielding dividend due to our strong cash flow generation.

I believe that our performance over the past several years has demonstrated the efficacy of our digital first local media strategy validating.

Our focus on local markets outside of the top 50 U S cities.

And reinvigorating my confidence in our business model and our path forward.

In fact, our.

Our confidence in our current capitalization.

The strength of our balance sheet, our free cash flow generation.

And our business strategy has led us and the board to increase our dividend by plus five 3% year over year, which we just announced this morning.

In 2023 net revenue, excluding political decreased just under 1% year over year, and just under 2% in total to $454 2 million.

The second highest revenue amount in town squares history.

Adjusted EBITDA, excluding political decreased nine 1% year over year.

And negative 12, 1% in total to $100 million.

Bill Wilson: Impressively and worth noting, Townsquare is one of the only media companies that issued and met guidance for full year 2023, as macro conditions caused many others to either rescind guidance or not even issue annual and, at times, even quarterly guidance. Townsquare is also among the only broadcasters with net revenue levels above 2019. We are at 105% of 2019 net revenue levels and very close to 2019 adjusted EBITDA levels at 98%. Our digital performance drives this differentiation, as Townsquare's total 2023 digital net revenue is plus 47% above 2019's digital net revenue, even with the recent setbacks we are overcoming in our digital marketing solutions business. Our digital business is a true differentiator for Townsquare. As highlighted on slide 11, in 2023, approximately 51% of our company's total net revenue and 55% of our total adjusted operating income came from our digital solution. This highlights a point we often make.

Impressively and worth noting town square is one of the only media companies that issued and met guidance for full year 2023.

Macro conditions caused many others to either recent guidance, we're not even issue annual and at times, even quarterly guidance.

Town Square is also among the only broadcasters with net revenue levels above 2019, we are at 105% of 2019 net revenue levels and very close to 2019 adjusted EBITDA levels at 98%.

Our digital performance drives this differentiation as town squares totaled 2023 digital net revenue is plus 47% above 2019 as digital net revenue.

Even with the recent setbacks, we are overcoming and our digital marketing solutions business.

Our digital business is a true differentiator for town square.

As highlighted on slide 11 in 2023, approximately 51% of our company's total net revenue and 55% of our total adjusted operating income came from our digital solutions.

This highlights the point, we often make it.

Bill Wilson: Townsquare is no longer the radio broadcast company it was when it was founded in 2010. Townsquare has evolved into a digital-first local media company that is truly distinguished from other local media peers, with a world-class team and a unique and differentiated strategy, assets, platforms, and solutions. I'd like to take a brief moment to highlight one of the members of our world-class digital team. I'm proud to share with you this morning Sun Sax, our Senior Vice President of Products and Engineering.

Town Square is no longer the radio broadcast company. It was when it was founded in 2010.

It sounds square has evolved into a digital first local media company that is truly distinguished from other local media peers with a world class team and a unique and differentiated strategy assets platforms and solutions.

I'd like to take a brief moment to highlight one of the members of our World class digital team.

I'm proud to share with you. This morning that <unk>, our senior Vice president of products and engineering.

Bill Wilson: Being part of the Townsquare team from the beginning, a true Townsquare OG, Sun will be receiving the NAB's Digital Leadership Award, a significant and well-deserved recognition. One of the numerous initiatives Sun and the team are working on is leveraging AI in numerous aspects of our business. Congratulations, son, and to our entire tech and product team he leads and inspires each day.

As part of the town square team from the bidding a true town square Oji will be receiving the <unk> Digital leadership award a significant and well deserved recognition.

One of the numerous initiatives done and the team are working on is leveraging AI and numerous aspects of our business.

Congratulations southern our entire tech and product team he leads and inspires each day.

Bill Wilson: Historically, for Townsquare and the overall advertising industry, digital advertising outperforms other forms of advertising during a downturn, and that was true for us again last year. In 2023, many agree that the advertising market was in a recession, which had a larger impact on broadcast and digital, particularly in the national marketplace. Thankfully, our national exposure is limited, with less than 10% of our total revenue coming from the national broadcast marketplace.

Historically for town square and the overall advertising industry.

<unk> advertising outperforms other forms of advertising during a downturn and that was true for us again last year.

In 2023, many agree that the advertising market was in a recession, which had a larger impact on broadcast and digital particularly in the national marketplace.

Thankfully our national exposure is limited with less than 10% of our total revenue coming from the broadcast national marketplace.

Bill Wilson: That, combined with the fact that we enjoy strong, often long-term relationships with our local advertising clients, contributed to our broadcast advertising segment outperforming the industry. However, despite our outperformance, Townsquare's broadcast advertising net revenue excluding political still declined negative 3.6% year over year, in large part due to National, which declined last year negative 18% year over year. It is worth noting that National continues to put downward pressure on broadcast and is currently pacing down negative 7% in Q1, while Local Spot continues to outperform National. So, broadcast overall in Q1 is pacing down just a couple points for us right now. But while broadcasts remain significantly below 2019 levels, we have gained broadcast market share since 2019. And I'm proud to say again, we did it in 2023.

That combined with the fact that we enjoy strong often long term relationships with our local advertising clients.

Contributed to our broadcast advertising segment outperforming the industry.

However, despite our outperformance town squares broadcast advertising net revenue, excluding political still declined negative three 6% year over year.

In large part due to national which declined last year negative 18% year over year.

It is worth noting that national continues to put downward pressure on broadcast and is currently pacing down negative 7% in Q1, while local spot continues to outperform national So that broadcast overall in Q1 is pacing down just a couple of points for us right now.

But while broadcast remained significantly below 2019 levels. We have game broadcast market share since 2019, I am proud to say again, we did it in 2023.

Bill Wilson: I am very proud of our team for achieving this market share growth as it demonstrates the benefits and importance of differentiated local content on our local radio broadcasts. There is no better team of content contributors and sales team. Where we really shined, unsurprisingly, was in digital advertising. In a year of macro uncertainty, digital advertising was once again the fastest growing segment of our company, differentiating Townsquare from local media peers and even national digital players at times. We owe our digital advertising success to our sophisticated digital products and solutions, which are entirely in-house, giving us 100% control of the client relationship, starting with the client pitch, then campaign design, media buying and optimization, and ongoing reporting and insights, which we believe translates to a better customer experience and higher client retention rates. In addition, we have the unique ability to collect and analyze first-party data from our audience of over 75 million monthly unique visitors to our portfolio of over 400 local news and entertainment websites, 400 mobile apps, and 10 leading national music and entertainment websites.

I'm very proud of our team for achieving this market share growth as it demonstrates the benefits and importance of differentiated local content on our local radio broadcast no better team of content contributors and sales teams.

Where we really shines unsurprisingly with digital advertising.

In a year of macro uncertainty digital advertising was once again, the fastest growing segment of our company.

Differentiating town square from local media peers, and even national digital players at times.

We are a digital advertising success to our sophisticated digital products and solutions, which are entirely in house.

Giving us 100% control of the client relationship starting with the client pitch than campaign design media buying and optimization and ongoing reporting and insights, which we believe translates to a better customer experience and higher client retention rates.

In addition, we have the unique ability to collect and analyze first party data from our audience of over 75 million monthly unique visitors to our portfolio of over 400, local news and entertainment websites 400, mobile apps and 10, leading national music and entertainment web sites.

Bill Wilson: Our large first-party data set allows us to provide detailed and unique insights about consumer behaviors, audience interest, and purchase intent that drives real results with strong ROI for our clients, giving us a true strategic advantage over our local competition. Another key factor that drives our strong digital advertising success is our focus on markets outside the top 50 U.S. cities, a significant, significant differentiator for our broadcast business and, most importantly, for our digital businesses. Because we are not in the large top 50 markets, we face significantly less competition from large media players, digital marketing solutions players, and digital programmatic providers. And importantly, the competitors we do face rarely have in-house solutions and instead utilize out-of-house third-party vendors.

Our large first party data set allows us to provide detailed and unique insights about consumer behaviors audience interest and purchase intent.

Drives real results with strong ROI for our clients, giving us a true strategic advantage over our local competition.

Another key factor that drives our strong digital advertising success is our focus on markets outside the top 50 U S cities, a significant significant differentiator for our broadcast business and most importantly for our digital businesses.

Because we are not in large top 50 markets, we faced significantly less competition from large media players digital marketing solutions players and digital programmatic providers and importantly, the competitors, we do face rarely have in house solutions and instead utilize out of house third party vendors.

Bill Wilson: Owning our own tech platforms in-house, combined with the breadth of our digital solutions, is a competitive advantage in any size market. Yet, in cities outside the top 50, it is a significant difference maker, driving our digital advertising to be the strongest growth engine in the company. In 2023, Townsquare's digital advertising net revenue and digital advertising profit each increased plus 7% year over year. S&P Global Market Intelligence's latest forecast projects that digital advertising in the United States will increase at a plus 8.5% CAGR through 2028, as digital advertising grows from 69% of all advertising spend in 2023 to approximately 76% of all advertising spend in 2028. We are confident that these favorable industry trends, together with our in-house full suite of marketing solutions, investment in our original content strategy, and our first-party data advantage, will continue to drive strong digital advertising growth during that same period. Conversely, as I shared previously, 2023 was a reset year at Townsquare Interactive. Rising interest rates, inflation, and wage pressures drove elevated churn rates and slower sales velocity.

Owning our own tech platforms in house.

Bind with the breadth of our digital solutions is a competitive advantage in any size market yet.

Yet in cities outside the top 50, it is a significant difference maker driving our digital advertising to be the strongest growth engine in the company.

In 2023 town squares digital advertising net revenue and digital advertising profit each increased plus 7% year over year.

S&P global market intelligence latest forecast.

<unk> digital advertising in the United States will increase at a plus eight 5% CAGR through 2028 as.

As digital advertising grows from 69% of all to advertising spend in 2023 to approximately 76% of all advertising spend in 2028.

We are confident that these favorable industry trends together with our in house full suite of marketing solutions investment in our original content strategy and our first party data advantage. We will continue to drive strong digital advertising growth during that same period.

Conversely, as I shared previously 2023 was a reset year and town square interactive.

Rising interest rates inflation and wage pressures drove elevated churn rates and slower sales velocity.

Bill Wilson: In addition, we started the year with higher customer attrition driven by internal customer service turnover that was a result of our return to work mandate at our Town Square Interactive Headquarters. We have been asked if we still believe in the growth strategy and addressable market of Town Square Interactive given last year's challenge, and the answer is yes, without a doubt, unquestionably so.

In addition, we started the year with higher customer attrition driven by internal customer service turnover that was a result of our return to work mandated our town square interactive headquarters.

We have been asked if we still believe in the growth strategy, an addressable market of town square interactive given last year's challenge.

The answer is yes without a doubt unquestionably. So we are seeing numerous early signs of improvement come.

Bill Wilson: We are seeing numerous early signs of improvement. Customer churn peaked in Q2 2023, although still above historical levels today. The spike in employee attrition and the related customer churn is behind us, and ARPU for new sales is increasing. The changes we made to our customer service model in response to the challenges we faced last year allowed us to capture cost efficiencies and importantly set us up to scale more efficiently going forward. In 2023, Townsquare Interactive's net subscription revenue declined by negative 9.1% compared to the prior year. However, we managed expenses such that our adjusted operating income margin only contracted 60 basis points to 28.3%.

Customer churn peaked in Q2 2023, although still above historical levels today, despite can employee attrition and the related customer churn is behind us and.

<unk> for new sales is increasing.

The changes we made to our customer service model in response to the challenges we faced last year allowed us to capture cost efficiencies and importantly set us up to scale more efficiently going forward.

In 2023 town square interactive net subscription revenue declined negative nine 1% compared to the prior year.

However, we manage expenses such that town square interactive adjusted operating income margin only contracted 60 basis points to 28, 3%.

Bill Wilson: However, given the loss of over 6,500 subscribers in 2023, Even though we are currently experiencing many positive signs at Townsquare Interactive, including improving subscriber trends, which I'll outline in a few moments, the impact of losing over 6,500 subscribers in 2023 puts significant negative pressure on both revenue and profit year-over-year growth in 2024. For example, even with meaningfully lower subscriber losses in Q1 2024 versus Q4 2023, first quarter revenue for Townsquare Interactive will still be down 15% to 16%, which is a decline of over $3 million from Q1 2023. In the long term, we are confident that we have a long, sustainable runway ahead of us, with 24,000 subscribers at the end of 2023, of whom approximately 58% are outside of our local media footprint. In an addressable market of nearly 9 million target customers, we are only scratching the surface.

However, given the loss of over 6500 subscribers in 2023.

Even though we are currently experiencing many positive signs at town square interactive, including improving the subscriber trends, which will outline in a few moments.

The impact of losing over 6500 subscribers in 2023 put significant negative pressure on both revenue and profit year over year growth in 2024.

For example, even with meaningfully lower subscriber losses in Q1 2024 for Q4 2023 first quarter revenue per town square interactive will still be down 15% to 16%, which is a decline of over $3 million from Q1 2023.

And the long term, we are confident that we have a long sustainable runway ahead of us.

With 24000 subscribers at the end of 2023, which approximately 58% are outside of our local media footprint.

In an addressable market of nearly 9 million target customers, we are only scratching the surface.

Bill Wilson: With our existing subscriber base, superior product offering, and a huge market opportunity of nearly 9 million target customers, as outlined on slide 14, I am confident that Townsquare Interactive is geared up for long-term profitable growth and success. To that end, the first sign of the rebound in Townsquare Interactive will be the return to subscriber growth. The second sign of the rebound will be month-over-month revenue growth. And given our continued, ongoing, aggressive investment in Townsquare Interactive, the third sign of returning to strength will be month-over-month profit growth in Q1 2024. I expect net subscriber losses to be materially improved over the rate we experienced in both Q3 and Q4 of 2023. My current expectation is we could return to net subscriber ads in Q2 and no later than Q3 of 2024.

With our existing subscriber base superior product offering and a huge market opportunity of nearly 9 million target customers as outlined on slide 14.

Im confident that town square interactive is geared up for long term profitable growth and success.

To that end the first sign of the rebound in town square interactive will be the return to subscriber growth.

The second sign of the rebound will be month over month revenue growth.

And given our continued ongoing aggressive investment in town square interactive.

Third signs of returning to strength will be month over month profit growth.

In Q1 2024.

I expect net subscriber losses to be materially improved over the rate we experienced in both Q3 and Q4 of 2023.

My current expectation is we could return to net subscriber adds in Q2 and no later than Q3 2024.

Bill Wilson: My expectation for month-over-month revenue growth is also in Q2 and no later than Q3 2024. And my expectation for month-over-month profit growth is dependent on how aggressive we can continue to invest in the business in Charlotte and Phoenix. Yet, with that context provided, I do expect to return to month-over-month profit growth in Q3 or Q4 of 2024. As I already stated, I am very confident that Townsquare Interactive is back on track and will achieve long-term profitable growth and success again.

My expectation for month over month revenue growth is also in Q2 and no later than Q3 2024.

And my expectation for month over month profit growth.

Is dependent on how aggressive we can continue to invest in the business in Charlotte and Phoenix.

With that context provided I do expect to return to month over month profit growth in Q3 or Q4 of 2024.

As I already stated I am very confident that town square interactive is back on track and set up a long term profitable growth and success again.

Bill Wilson: Thankfully, we strategically built a diverse product and service platform, and the strength of digital advertising offset a difficult year in subscription digital marketing solutions. In total, our digital revenue grew approximately 1% year over year to $232.5 million and, importantly, generated $69.1 million of adjusted operating income, representing a very strong 30% profit margin, a margin much higher than most local media competitors. We believe Townsquare's ability to drive profitable, sustainable digital growth is a key differentiator for our company. Digital is, and will continue to be, our growth engine, and we will continue to invest in our digital business to fuel further profitable growth. We view local radio as an extremely valuable asset with significant cash flow properties, unparalleled consumer reach, and an important local connection to our audience.

Thankfully, we strategically built a diverse product and service platform and the strength of digital advertising offset a difficult year in subscription digital marketing solutions.

In total our digital revenue grew approximately 1% year over year.

So $232 $5 million and importantly generated $69 1 million of adjusted operating income Reparate, representing a very strong 30% profit margin a margin much higher than most local media competitors.

We believe town squares ability to drive profitable sustainable digital growth is a key differentiator for our company.

Digital is.

And we will continue to be our growth engine.

And we will continue to invest in our digital business to fuel further profitable growth.

We view local radio as an extremely valuable asset with significant cash flow properties unparalleled consumer reach an important local connection to our audience.

Bill Wilson: In fact, we would never achieve the success we have had in building an at-scale digital audience and the resulting digital advertising and digital marketing solutions businesses if not for our continued strong local radio presence and performance. Our traditional AM, FM, and over-the-air broadcast continues to reach, on average, one out of every two adults in our markets where we operate radio stations. Very, very powerful and very, very important.

In fact, we would have never achieved the success, we have had in building and add scale digital audience, and the resulting digital advertising and digital marketing solutions businesses.

Not for a continued strong local radio presence and performance.

Our traditional am FM over the air broadcast continues to reach on average one out a very two adults in our markets, where we operate radio stations.

Very powerful and very very important.

Bill Wilson: And because of the powerful connection and combination of Townsquare's digital, plus radio, plus live events, plus local investment, we believe that our flywheel will continue to blaze forward and gain momentum. One very important characteristic of our business model that we like to highlight as often as possible is our significant cash flow generation. Although net revenue adjusted EBITDA declined in 2023, we generated $68 million of cash flow from operations, up an impressive plus 35% year over year.

And because of the powerful connection and combination of town squares digital plus radio plus live events plus local investment we believe that our flywheel will continue to place forward and gain momentum.

One very important characteristic of our business model that we'd like to highlight as often as possible is our significant cash flow generation.

Although net revenue adjusted EBIT declined in 2023.

We generated $68 million of cash flow from operations.

An impressive plus 35% year over year.

Stuart B. Rosenstein: We ended the year with $61 million of cash on hand and net leverage of 4.4 times. We remain very confident in our current capitalization and the strength of our balance sheet and are pleased that we can continue to deliver attractive current cash returns for our equity shareholders. And now, I'd like to turn the call over to Stu, who will go through our results in even more detail, as well as provide you with our first quarter and full year guidance. Stu, please.

We ended the year with $61 million of cash on hand, and net leverage of four four times.

We remain very confident in our current capitalization and the strength of our balance sheet.

And are pleased that we can continue to deliver attractive current cash returns for our equity shareholders.

And now I'd like to turn the call over to Sue who will go through our results in even more detail.

As well as provide you our first quarter and full year guidance Stu take it away.

Stuart B. Rosenstein: Thank you, Bill. And good morning, everyone. It's great to speak to you all today. We are pleased to report that our fourth quarter results met our revenue and profit guidance, and, more importantly, that our full year results met the guidance that we set out at the beginning of this year, something that not many others have managed to achieve given the difficult operating environment. Fourth quarter net revenue declined 4.6% year-over-year to $114.8 million, which exceeded our guidance range of $110.6 million to $112.6 million. Excluding political, fourth quarter net revenue declined 2.7%.

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

We are pleased to report that our fourth quarter results met our revenue and profit guidance and more importantly that our full year results met the guidance that we set out at the beginning of this year something that not many others managed to achieve given the difficult operating environment.

Fourth quarter net revenue declined four 6% year over year to $114 8 million.

Which exceeded our guidance range of $110 6 million to $112 $6 million, excluding political fourth quarter net revenue declined two 7%.

Stuart B. Rosenstein: Full-year net revenue declined 0.9% year-over-year, excluding political, and 1.9% year-over-year in total, to $454.2 million, which was within our guidance set at the beginning of the year. In addition, this was our second-highest revenue year in the company's history with these assets, and it was achieved in a non-political year. Fourth quarter adjusted EBITDA declined 6.5% year-over-year excluding political and 12.7% in total to $24.8 million, also within our guidance range of $24.8 to $25.8 million. Full-year adjusted EBITDA declined 9.1% year-over-year prior to the year, excluding political, and 12.1% year-over-year in total, to $100 million, also within our guidance. Fourth quarter broadcast advertising net revenue decreased 2.5% and increased 1.3% excluding political revenue, which was a sequential improvement from the third quarter decline. For the year, broadcast advertising net revenue declined in line with expectations.

Full year net revenue declined 9% year over year, excluding political and one 9% year over year in total to $454 2 million.

Which was within our guidance set at.

At the beginning of the year. In addition, this was our second highest revenue year in the company's history with these assets and it was achieved in a non political year.

Fourth quarter, adjusted EBITDA declined six 5% year over year, excluding political and 12, 7% in total to $24 8 million also within our guidance range of $24 eight to $25 $8 million.

Full year adjusted EBITDA declined nine 1% gross prior year, excluding political and 12, 1% year over year in total to $100 million also within our guidance range.

Fourth quarter broadcast advertising net revenue decreased two 5% and increased one 3%, excluding political revenue, which was a sequential improvement.

Third quarter declines for the year broadcast advertising net revenue declined in line with expectations at three 6%, excluding political and five 4% in total.

Stuart B. Rosenstein: 3.6% excluding political and 5.4% in total. Fourth quarter broadcast profit margins contracted slightly on a year-over-year basis when excluding politics from 26% in Q4 of 2022 to 25% in Q4 of 2023. As we've outlined on previous calls, 2023 was a recent year for Townsquare Interactive, a subscription digital marketing solution. In the fourth quarter, net revenue decreased 14.5% as compared to the prior year, and profit decreased 11.3% year-over-year. For the full year, net revenue decreased 9.1%, and profit decreased 11%.

Fourth quarter broadcast profit margins contracted slightly on a year over year basis, when excluding political from 26% in Q4 of 2022% to 25% in Q4 of 2023.

As <unk> outlined on previous calls 2023 was a reset year for town square feet directly.

Description digital marketing solution segment.

In the fourth quarter net revenue decreased 14, 5% as compared to the prior year and profit decreased 11, 3% year over year.

For the full year net revenue decreased nine 1% and profit decreased 11%.

Stuart B. Rosenstein: Margins are strong at approximately 28% in 2023, only a slight decline from 2022's 29% profit margin. This was despite our continued investment in the business, including the ongoing ramp-up of our newly opened Phoenix location. Townsquare Ignite, our digital advertising segment, was the largest growth driver of the company in 2023, with revenue and profit increasing 7.1% and 7.5% year-over-year, respectively. However, fourth quarter digital advertising net revenue contracted slightly by approximately $500,000 or $1.5 trillion.

Margins were strong at approximately 28% in 2023, only a slight decline from 2022, 29% profit margin.

This was despite our continued investment in the business, including the ongoing ramp up of our newly opened Phoenix location.

Thanks, Greg our digital advertising segment was the largest growth driver of the company in 2023 with revenue and profit, increasing seven 1% and seven 5% year over year, respectively.

Fourth quarter digital advertising net revenue contracted slightly by approximately $500000 or.

For one 5% the main driver of the decline, which was our national digital business was down double digits in revenue in the fourth quarter offsetting growth in our programmatic and our local owned and operated digital advertising business slides.

Stuart B. Rosenstein: The main driver of the decline, which was our national digital business, was down double digits in revenue in the fourth quarter, offsetting growth in our programmatic and our local owned and operated digital advertising business. We were experiencing similar trends in Q1 of 2024 with national digital down double digits offset by solid programmatic room. Additionally, our current pacing in Q2 digital advertising is stronger overall than in Q1 of 2025. In 2023, this segment's profit margin is expected to be approximately $31 billion. The other category, which is comprised of live events activities, generated $1.3 million of revenue in the fourth quarter, a decline of 15.7% year-over-year and a small loss of approximately $400,000. In the full-year period, other revenue increased 18.6% to $10 million and was slightly profitable with $222,000 adjusted operating income.

We're experiencing similar trends in Q1 of 2024 with national digital down double digits offset by solid programmatic growth. Additionally, our current pacing in Q2 digital advertising is strong our overall and in Q1 of 2024.

In 2023 this segment profit margin was approximately 31%.

The other category, which is comprised of live events activity.

<unk> $1 $3 million of revenue in the fourth quarter, a decline of 15, 7% year over year and a small loss of approximately $400000.

In the full year period, other revenue increased 18, 6% to $10 million and was slightly profitable with $222000 adjusted operating income.

Stuart B. Rosenstein: In 2024, we are focusing on refining the live event schedule to eliminate unprofitable or barely profitable events, so expect to see a small revenue decline in 2024, but with profit and margin expansion. As a reminder, live event activities should not be viewed as a growth driver or a revenue center for Townsquare but rather a marketing arm of our company. In the fourth quarter of 2023, we had non-cash impairment charges of $24.9 million and $90.6 million for the full year. The majority of these charges were related to our FCC life.

In 2024, we are focusing on refining the live event schedule to eliminate unprofitable or barely profitable events. So we expect to see a small revenue decline in 2024, but with profit and margin expansion.

As a reminder, our log events activity should not be viewed as a growth driver or revenues falling for town square or rather a marketing arm of our company.

In the fourth quarter of 2023, we had noncash impairment charges of $24 $9 million.

And $96 million for the full year. The majority of these charges were related to our FCC licenses.

Stuart B. Rosenstein: As I covered on previous calls, given the way these non-cash impairments are mathematically determined, we expect the value of our FCC licenses to continue to be written down regularly over time. The 2023 impairments were caused by rising interest rates, which caused the discount rate in our calculations to increase by approximately 190 basis points over the course of 2023, as well as decreases in third-party broadcast revenue forecasts and a higher initial capital cost due to rising interest rates, all of which are inputs into our evaluation. These write-downs of a decade-old purchase price calculation have no bearing on our cash position, our operating revenue, operating expenses, profitability, or the company's future prospects. There are nothing more than nine cash accounting charges affecting only the historical recorded purchase price allocations that we made when we bought these radio station assets roughly a decade or more ago. Our fourth-quarter net income declined from $3.9 million in 2022 to a net loss of $1.9 million, or $0.14 per share. The decline was largely due to non-cash impairment charges and a decline in revenue.

On previous calls given the way. These noncash impairments are mathematically determined we expect the value of our FCC licenses to continue to be written down regularly over time.

To 2023 patents were caused by rising interest rates, which caused the discount rate and a couch operations to increase by approximately 190 basis points over the course of 2023 as well as decreases in third party broadcast revenue forecast and a higher initial capital cost due to rising prices all of which.

Through our inputs and our valuations. These write downs are a decade old purchase price calculations had no bearing on our cash position, our operating revenue operating expenses profitability or the companys future prospects. They are nothing more than noncash accounting charges affecting only the historical recorded purchase price allocations that we made when we bought <unk>.

<unk> station assets, roughly a decade or more ago.

Our fourth quarter net income declined to $3 $9 million in 2022 to a net loss of $1 9 million or <unk> 14 per share.

The decline was largely due to the noncash impairment charges and the decline in revenue.

Stuart B. Rosenstein: Fourth quarter adjusted net income per share, which adds back certain items, including non-cash impairments and adjustments for a normalized tax rate, was $0.34 per diluted share. We'd like to remind you that any benefit or provision for income taxes included on the face of the income statement is for GAAP financial statement purposes only. We maintain significant tax attributes, including more than $100 million of federal NOL carry-forwards and other substantial tax shields related to the tax amortization of our intangible assets. We continue to believe that we will not be a material cash taxpayer until approximately 2020. As Bill highlighted, and I'd like to again emphasize... We consistently have strong cash flow generation. We generated $68 million of cash flow from operations in 2020. That's up 35% year-over-year, or $18 million. And we ended the year with $61 million of cash. At the end of the year, our net leverage was 4.43 times, down slightly from the third quarter. We repurchased $27.1 million of bonds below par during the year at an average price of $94, bringing our total bond repurchases to $46 million since issue.

Fourth quarter, adjusted net income per share, which adds back certain items, including noncash impairments and adjustments for a normalized tax rate was 34 cents per diluted share.

We'd like to remind you that any benefit or provision for income taxes included on the face of the income statement.

GAAP financial statement purposes, only we maintain significant tax attributes, including more than $100 million of federal NOL carryforwards, and other substantial tax shields related to the tax amortization of oriented assets.

We continue to believe that we will not be a material cash taxpayer until approximately 2026.

As bill highlighted and I'd like to again emphasize we consistently have strong cash flow generation, we generated $68 million of cash flow from operations in 2023.

Up 35% year over year or $18 million and ended the year with $61 million of cash.

At the end of the year, our net leverage was 443 times down slightly from the third quarter, we repurchased $27 $1 million of bonds below par during the year at an average price of $94, bringing our total bond repurchases to $46 million since issuance.

In addition, we repurchased approximately one 7 million shares in 2023, and an average price of $9 88 per share as always our number one priority is to invest in our local business through organic internal investments that support our revenue and profit growth, particularly our digital growth engine.

Stuart B. Rosenstein: In addition, we repurchased approximately 1.7 million shares in 2023 at an average price of $9.88 per share. As always, our number one priority is to invest in our local business through organic internal investments that support our revenue and profit growth, particularly our digital growth venture. We plan to continue to invest in our digital product technology, sales, content, and support teams, specifically in our Townsquare Interactive and Townsquare Ignite businesses in order to maintain our strong competitive advantages in our markets outside the top 50 cities. In addition, we are highly focused on our balance sheet and feel extremely confident that we will be well-positioned to refinance our February 2026 notes before they come due. As Bill mentioned earlier, our board has approved a 5% increase in our dividends. The dividend of $0.1975 per share, which equates to $0.79 per share on an annualized basis, implies an annual payment of approximately $13 million based on our current share count and a dividend yield of approximately 7.5% based on our current share price. This higher dividend will be payable on May 1st to shareholders of record as of April 5th.

We plan to continue to invest in our digital product technology sales content and support teams specifically in our town squares interactive and town square ignite businesses in order to maintain our strong competitive advantages in our markets outside the top 50 cities. In addition, we are highly focused on it.

Balance sheet and feel extremely confident that we will be well positioned to refinance our February 2026 notes before they come due.

As Bill mentioned earlier, our board has approved a 5% increase in our dividend the dividend of <unk> 19, and three quarter cents per share, which equates to <unk> 79 per share on an annualized basis implies an annual payment of approximately $13 million based on our current share count and a dividend yield of approximately seven five.

Based on our current share price this higher dividend will be payable on may <unk> to shareholders of record as of April 5th We believe our strong cash flow characteristics will allow us to continue to invest in our business support our newly increased dividend and give us flexibility to opportunistically pursue debt and share repurchases.

Stuart B. Rosenstein: We believe our strong cash flow characteristics will allow us to continue to invest in our business, support our newly increased dividend, and give us flexibility to opportunistically pursue debt and share repurchases as market circumstances allow. Turning to our first quarter and full year outlook, we expect first quarter net revenue to be between $98.5 million and $100 million. As Bill already detailed, baked into our revenue guide is a decline of over $3 million year-over-year at Townsville Interactive. We expect first quarter adjusted EBITDA to be between $17.5 million and $18.5 million.

As market circumstances, you long.

Turning to our first quarter and full year outlook, we expect first quarter net revenue to be between $98 5 million and $100 million.

Bill already detailed baked into our revenue guide is a decline of over $3 million year over year at Townsville Interactive, we expect first quarter adjusted EBITDA to be between $17 5 million $18 5 million for the full year. We currently expect that our revenue will be between 400.

Stuart B. Rosenstein: For the full year, we currently expect that our revenue will be between $440 million and $460 million. This represents a year-over-year growth rate of 1% at the high end of the range and minus 3% at the low end of the range. Embedded in this guidance is a political revenue estimate of $14 to $16 million as compared to our all-time high political revenue of $16 million in 2012. In addition, although, as Bill outlined, we expect to return to month-over-month revenue growth at Townsquare Interactive, on a full-year basis, we expect year-over-year revenue declines of over $8 million at Townsville.

$40 $460 million.

Represent a year over year growth rate of 1% at the high end of the range and minus 3% at the low end of the range embedded in this guidance is a political revenue estimate of $14 million to $16 million as.

Compared to our all time high political revenue of $16 million in 2020 and.

In addition, although as bill outlined we expect to return to month over month revenue growth at town square interactive.

On a full year basis, we expect year over year revenue declined over 8 million tons great interactive.

Bill Wilson: We expect that our 2024 adjusted EBITDA will be between $100 million and $110 million. And with that, I will now turn the call back over to the. Thank you, Stu. And thank you to everyone who joined us this morning.

We expect that our 2024, adjusted EBITDA will be between $100 million and $110 million.

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

Thank you Stu.

Thank you to everyone who joined US this morning, we greatly appreciate it.

Bill Wilson: We greatly appreciate it. In closing, I want to highlight a few key takeaways. Number one:

In closing I want to highlight a few key takeaways.

Number one.

Bill Wilson: 2023 Net Revenue and Adjusted EBITDA both met the guidance that we initiated at the start of last year. And importantly, net revenue represented the second highest that Townsquare has ever achieved with these assets.

2023, net revenue and adjusted EBITDA, both met the guidance that we initiated at the start of last year.

And importantly, the net revenue represented the second highest at town square has ever achieved with these assets.

Number two.

Bill Wilson: Net revenue remains above 2019 levels, and adjusted EBIT is at 98% of 2019 levels, a rare achievement in our industry. Number three, approximately 51% of our company's total net revenue and 55% of our total adjusted operating income now come from our digital solution. Number four, we're very well positioned for our upcoming refinancing with net leverage at 4.4 times. Number five, we generated $68 million of operating cash flow in 2023.

Net revenue remains above 2019 levels and adjusted EBIT is at 98% of 2019 levels a rare achievement in our industry.

Number three approximately 51% of our company's total net revenue and 55% of our total adjusted operating income now come from our digital solutions.

Therefore, we're very well positioned for our upcoming refinancing with net leverage of four four times.

And number five we generated $68 million of operating cash flow in 2023.

Bill Wilson: And finally, number six, given our confidence in the long-term growth and success of Townsquare, we are raising our high-yielding dividend that will continue to deliver current cash returns for our shareholders. I am very proud of what our business model delivered in the face of rising interest rates and inflation and extreme and persistent national advertising weakness in 2023. Our differentiated digital advertising platform delivered high single-digit revenue and profit growth, and our mature cash cow broadcast advertising platform has and continues to generate a solid profit contributing to our strong cash generation. Our performance this year has reinforced our confidence in our digital-first local media strategy, our deliberate focus on markets outside the top 50 cities in the United States, and the long-term profitable growth potential of our digital platform. And our success is owed to the Townsquare team, focusing on what we do best, creating high-quality, local, original content for our audiences online and on-air, as well as delivering creative and cost-effective marketing and advertising solutions for our local clients with strong return on investment.

And finally number six given our confidence in the long term growth and success of town square, we are raising our high yielding dividend that will continue to deliver current cash returns for our shareholders.

I am very proud of what our business model delivered in the face of rising interest rates and inflation in extreme and persistent national advertising weakness in 2023.

Our differentiated digital advertising platform delivered high single digit revenue and profit growth.

And our mature cash cow broadcast advertising platform.

Has and continues to generate a solid profit contributing to our strong cash generation.

Our performance this year has reinforced our confidence in our digital first local media strategy, our deliberate focus on markets outside the top 50 cities in the United States and the long term profitable growth potential of our digital platform.

And our success is owed to the town square team focusing on what we do best creating high quality local original content for our audiences online and on air as well as delivering creative and cost effective marketing and advertising solutions for our local clients with strong return on investment.

Operator: If we continue to do this each day, we will achieve success and ultimately achieve our mission of becoming the number one local media company in the markets outside the top 50 in the United States and consequently drive long-term sustainable shareholder value. And again, thanks to each of you for taking the time to be updated on Townsquare's Q4 results this morning. We greatly appreciate it. Operator, at this time, please open the line for any and all questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number on your touchtone phone. You will hear three tone prompts acknowledging your request, and your questions will be answered in the order they are received. Should you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any.

If we continue to do this each day, we will achieve success and ultimately achieve our mission of becoming the number one local media company in the markets outside the top 50 in the United States.

And consequently drive long term sustainable shareholder value.

And again, thanks to each of you for taking the time to be updated on town squares Q4 results. This morning, we greatly appreciate it.

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

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one on your Touchtone phone.

Here are three Tom prompt acknowledging your request and your questions will be pulled in the order they are received.

Do you wish to decline from the polling process. Please press star followed by the two if you are using a speaker phone. Please lift the handset before pressing and Keith.

Michael A. Kupinski: Your first question comes from Michael Kupinski with Noble Capital Markets. Please go ahead. Thank you, good morning, and thanks for taking my questions. First, on Townsquare Interactive, as you mentioned last year, we saw businesses really struggle. What are you seeing now that kind of gives you the tone of optimism that you're having with Townsquare Interactive? And then maybe if you can provide some color on how Phoenix is performing, or is most of your optimism being driven by Phoenix and what you're seeing west of the Mississippi? Or is it a fairly broad base?

Your first question comes from Michael Kaplinsky with Noble capital markets. Please go ahead.

Thank you good morning, and thanks for taking my questions.

First on town square interactive.

You mentioned last year, we saw business has really struggled what are you seeing now that kind of gives you.

The tone of optimism that you have with with the town square Interactive and then maybe if you can provide some color on how Phoenix is performing.

As most of your optimism and being driven by.

Phoenix, and what Youre seeing west of the Mississippi or.

Bill Wilson: I was just wondering if you could just kind of give us some color there. Sure, good morning, Michael, and thank you for the question and joining us. Yeah, we have tremendous optimism as we go through 2024 for Townsquare Interactive. It is definitely not limited to Phoenix, although we're very pleased with how Phoenix has been growing in the management there and the hiring of talent, which was one of the main drivers of opening the office there. I'm very glad we did it last year.

Is it fairly broad based I was just wondering if you could just kind of give us some color there.

Sure Good morning, Michael and thank you for the question and joining us.

We have tremendous optimism as we go through 2024 for town square interactive.

It is definitely not limited to Phoenix, Although we're very pleased with how Phoenix has been scaling and the management there and the hiring of talent, which was one of the main drivers of opening the office there I'm very glad we did last year.

Bill Wilson: But our optimism is really multiple-fold. One is that businesses are still, obviously, as you know, dealing with high interest rates. We're at the highest interest rates in the last couple of decades, but everybody's expecting that to come down.

But our optimism is really multiple fold one is.

Business is still obviously as you know are dealing with high interest rates were at the highest interest rates in the last couple of decades, but everybody is expecting that to come down but these businesses are still dealing with that today, but youre seeing some wage pressure.

Bill Wilson: But these businesses are still dealing with that today. But you're seeing some wage pressure decrease. You're seeing inflation starting to come down, even though prices are up from a year ago. It's at a lower rate than where we were at a year ago. So that is definitely a positive tailwind. I call that minor right now.

Pressure decrease you're seeing inflation starting to come down even though prices are up from a year ago. It's at a lower rate than where we were at a year ago.

So that is definitely a positive tailwind.

Called out minor right now I think that picks up steam and more tailwind for us, particularly as interest rates come down if thats June or if that's later in the summer I think it's a question of when versus if and I think that will actually give us more momentum than we've baked into our guidance because thats an unknown. What we're really excited about in terms of the optimism and the confidence for <unk>.

Bill Wilson: I think that picks up steam and more tailwind for us, particularly as interest rates come down. If that's June or if that's later in the summer, I think it's a question of when versus if. And I think that'll actually give us more momentum than we've baked into our guidance because that's an unknown. What we're really excited about in terms of the optimism and the confidence for Townsquare Interactive is, quite honestly, our own performance in terms of taking a step back, attacking ourselves, and, I believe, building a better client service organization as a result. As I mentioned, last year we lost over 6,500 subscribers, 6,650 to be exact. And we hit the highest level of churn in Q2, and that's decreased modestly but consistently as we sit here in March. As I mentioned in the prepared remarks, my expectation for Q1 is that we're less than half of the losses we experienced in Q4. So you can calculate based on what we described in terms of losses.

<unk> is quite honestly our own performance in terms of taking a step back attacking ourselves and I believe building a better client service organization as a result.

As I mentioned last year, we lost over 6500 subscribers 6650 to be exact and we hit the highest level of churn in Q2 and that's decreased.

Modestly by consistently as we sit here in March as.

As I mentioned in the prepared remarks my expectation in Q1 is that we're less than half of the losses, we experienced in Q4.

You cannot calculate based on what we described in terms of losses in Q4, we launched 1750 subscribers. So as we sit here in Q1, my expectation is less than half of that if.

Bill Wilson: In Q4, we lost 1,750 subscribers. So as we sit here in Q1, my expectation is less than half of that, if not roughly half of that. So that's a material improvement.

If not roughly half of that so that's a material improvement. The other thing I noted Michael is as we look at the subscriber growth, which to me is the first time.

Bill Wilson: The other thing I noted, Michael, is as we look at subscriber growth, which to me is the first sign of a turnaround and a rebound at Townsquare Interactive, the second sign being month-over-month revenue growth, and the third sign being profit month-over-month growth. I believe we're going to see subscriber growth in Q2. I'm quite confident of that right now. The latest would be Q3, but if I had to place money right now, my money would be on Q2. I also expect month-over-month revenue growth to occur in Q2, which is a significant change. If you look at our last year in 2023, we lost quarter-over-quarter revenue every quarter of 2023. So it was clearly a challenging year last year, but I'm very optimistic and quite confident we've turned that around. And then I believe we could even see flat revenue in March and then growth as soon as April in terms of revenue. But to just peg it into a quarter, I'd call it Q2.

Turnaround and a rebound accounts for interactive the second sign being month over month revenue growth in the third sign being profitable month over month growth.

I believe we're going to see subscriber growth in Q2.

I'm quite confident of that right now on the latest would be Q3, but if I had a place money right now my money would be on Q2 I also expect month over month revenue growth to occur in Q2.

Which is a significant change if you look at our last year in 2023, we lost quarter over quarter revenue every quarter of 2023. So it was clearly a challenging year last year, but I'm very optimistic and quite confident we've turned that around and then I believe we could even see flat <unk>.

<unk> in March and then growth as soon as.

April in terms of revenue, but just peg it into a quarter I would call. It Q2, and then as I described we are continuing to invest heavily in the business based on the opportunity. So the profit growth will probably occur either in Q3 or Q4 really dependent on how how much hiring we can do and how much investment we can do in the business because we have so much confidence we're not slowing down.

Bill Wilson: And then, as I described, we're continuing to invest heavily in the business based on the opportunity. So the profit growth will probably occur either in Q3 or Q4, really depending on how much hiring we can do and how much investment we can do in the business because we have so much confidence we're not slowing down in terms of the investment. So the optimism is definitely not tied to Phoenix. It's really, I'm so proud of the Town Square team from top to bottom, from our leaders to the people who deal with our clients every day. We really attacked ourselves.

In terms of the investments so the optimism is definitely not tied to Phoenix, it's really.

So proud of the town square team from top to bottom from our leaders to the people who are dealing with our clients every day.

We really attacked ourselves we took a major step back and said we are not doing this as well as we can do how do we improve that.

Bill Wilson: We took a major step back and said, we are not doing this as well as we can do. How do we improve that? And I know it's hard to see because, as I said and Sue said, in Q1, our revenue is going to be down 15% to 16%, over $3 million. You've dug yourself a hole of losing 6,600 subscribers.

It's hard to see because as I said and Sue said in Q1, our revenue is going to be down 15% to 16% over $3 million you dig yourself a hole of losing 66 hundreds subscribers youre going to see the financial impact of that throughout the year, even though there's so many positive signs of subscriber growth month over month revenue.

Bill Wilson: You're going to see the financial impact of that throughout the year, even though there are so many positive signs of subscriber growth month over month, revenue growth, and then profit growth month over month. But unless somebody takes the time to really dig into it, the headline is going to be revenue declining and profits declining year over year. But we have seen the turnaround. I'd say we've already turned it around, and we're seeing a dramatic rebound throughout 2024 in Town Square Interactive. So I'll pause there, Michael, for a follow-up. Thank you. One quick one, Bill. Thanks for that color, by the way.

Growth and then profit growth month over month, but unless somebody who takes the time to really dig into it. The headline is going to be revenue is declining a profit is declining year over year, but we have seen the turnaround I would say we've already turned it around and we're seeing a dramatic rebound throughout 2024 and town square active so I'll pause there Michael for follow ups.

Thank you one quick one on bill thanks for the color by the way.

Michael A. Kupinski: Obviously, now Google is kind of implementing the deprecation of cookies, and I was just wondering if you can kind of give us some visibility into what you're seeing in terms of any impact, anything that you're seeing from it, whether it be the programmatic side or other parts of your businesses related to that. Yes, thank you, Mike. I appreciate it.

Obviously, now google's kind of implementing the deprecation of cookies and that was just wondering if you can kind of give us some visibility on what youre seeing in terms of any impact anything that youre seeing from whether it be the programmatic side or other parts of your business is related to that.

Yes. Thank you Mike I appreciate it so one of the benefits for us as well.

Bill Wilson: So, you know, one of the benefits for us is we're a scale publisher, you know, so we have a great large audience. We talked about audience growth year over year on our network of local sites and national sites and mobile apps, and I couldn't be more proud of all of our content contributors on air and online driving that success. Quite honestly, if cookies go away, and as they go away, it's a real advantage to be a publisher because we're still capturing first-party data. We currently utilize third-party data as well, but not a lot of people are big publishers, so it impacts positively our O&O business, our owned and operated local and national websites, and it also helps us with our programmatic business.

At scale publisher, so we have a great large audience, we talked about the audience growth.

Year over year.

<unk> network of local sites national sites, and mobile apps and I couldnt be more proud of all of our content.

Content contributors on air and online driving that success.

Quite honestly, if cookies go away and as they go away, it's a real advantage to be a publisher because we're still capturing first party data.

Currently.

Utilize third party data as well, but not a lot of people are at scale publishers. So it impacts positively our O&M business, our owned and operated local and national websites and it also helps us with our programmatic business.

Bill Wilson: Obviously, we're quite proud of digital advertising growing, you know, 7% last year, increasing by 10 million on a full-year basis. You know, overall, programmatic was up low double digits in 2023, which was really strong, and our O&O local was up. We did definitely take a step back in our national O&O business. We haven't spoken a lot about this on previous calls, but we have leading brands in entertainment and music, like XXL for hip-hop and tastethecountry.com for country, and I won't name all ten of them, but they are the leading platforms for each of their genres.

Obviously, we're quite proud of with digital advertising growing 7% last year, increasing $10 million on a full year basis overall programmatic was up low double digits in 2023, which was really strong.

And our <unk> local was up we did definitely take a step back in our national O&M business. We haven't spoken a lot about this on previous calls, but we have leading brands and entertainment and music like XXL and hip hop and taste of country Dot com in country and I won't name all 10 of them, but they are the leading platforms for each of their genre that business.

Bill Wilson: That business has definitely been impacted, not from cookies because that hasn't happened yet, but there's been some significant change in algorithms for Google as well as Facebook referrals. You may have heard how many referrals to new sites has come down from social platforms. It's been pretty dramatic, and that's definitely impacted our national business, which what I would say has muted our digital advertising growth. If it wasn't for that, we would have grown more than 7% last year, and as we look at Q1, we're seeing similar trends as Q4 in our digital advertising business. We're seeing sequential improvement from Q4 to Q1. National business that I just described like XXL and Taste the Country is still down over 25%, which is over a million dollars in Q1, but thankfully, local websites and local owned and operated is up low to mid-single digits, and our programmatic continues to be up high single digits, which is great, and Q2 today, having the benefit of being here March 15 with you, we obviously have a good look at Q2 right now, and Q2 is pacing stronger than Q1 in digital advertising, and I believe I noted this on the call also is pacing better for broadcast advertising Q2 over Q1, so a lot of positives for us. I see Q2 better than Q1 in digital advertising. I see Q2 better than Q1 in broadcast advertising, and as I just described, I believe Q2 will be a monumental turnaround event for us in terms of subscriber growth and revenue growth in Town Square Interactive, so a lot of positives as we go into 2024. Great.

<unk> has definitely been impacted not from cookies, because that hasnt happened, yet, but there's been some significant change in algorithms for Google as well as Facebook referrals, you may have heard how many referrals to new sites has come down from social platforms, it's been pretty dramatic and Thats definitely impacted our national business, which are what I would say is.

Has muted our digital advertising growth if it wasn't for that we would have grown more than 7% last year and as we look at Q1.

Being similar trends as Q4 in our digital advertising business, we're seeing sequential improvement from Q4 to Q1.

National business that I, just described like XXL and pays the country is still down over 25%, which is over $1 billion in Q1, but thankfully local.

Websites locally owned and operated is up low to mid single digits and our programmatic continues to be up high single digits, which is great at Q2 today, having the benefit of being here March 15 with you. We obviously have a good look at Q2 right now in Q2 is pacing stronger than Q1 in digital advertising and I believe I. We noted this on the call.

It also is pacing better for broadcast advertising Q2 over Q1, so a lot of positives for us I see Q2, better than Q1, and digital advertising I see Q2, better than Q1 in broadcast advertising and as I. Just described I believe Q2 will be a monumental turnaround event for us in terms of subscriber growth and revenue growth in town square interactive.

So a lot of positives as we go into 2024.

Great. Thanks, Bill appreciate that that's all I have thank.

Thank you Michael have a great day.

Ladies and gentlemen, as a reminder, should you have a question. Please press star followed by the one.

Michael A. Kupinski: Thanks, Bill. I appreciate that. That's all I have.

Michael A. Kupinski: Thank you, Michael. Have a great day. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the number one. Your next question comes from Jim Goss with Barrington Research. Please go ahead. Alright, thank you and good morning. Sue, I'd like to ask you one first.

Your next question comes from Jim Goss with Barrington Research. Please go ahead.

Alright, Thank you and good morning.

So I'd like to ask you one first.

Thank you.

You alluded to this.

That the calculation.

The noncash.

James Charles Goss: You alluded to the fact that the calculation for the non-cash charges had quite a bit to do with the rising interest rate trends we've been experiencing. If rates tend to start to draw back after this long period of increases, do you think that will change the calculation? And I understand they're non-cash, but there might be a little bit of a distraction, and maybe you get rid of that element of noise.

Noncash charge rules.

And quite a bit to do with the rising interest rate trends we've been experiencing.

If the rates tend to start to draw back.

After this long period.

Increases do you think that will change the calculation that and I understand there are noncash, but there might be a little bit of a distraction maybe get rid of that element in mice.

Alright, Thanks, Tim Yes.

Stuart B. Rosenstein: Thanks, Jim. Yes. Well, obviously, if interest rates start falling back, like we all hopefully expect them to, that will be less of a drain on the calculation. Another important factor that was calculated into it this year was BIA's industry forecast came down for broadcast for 24. It really unfairly attaches itself to our company because it's mainly based upon large NFL city markets. Broadcasting does a lot better in small local markets than it does in the bigger markets. So we think that, you know, those two things together, you know, the rising interest rates and the industry forecast coming down for bigger cities, mainly, unfairly hurt us in that calculation. But, yes, you are correct. Assuming that broadcast forecasts hold steady or go up and interest rates come down, we shouldn't see as much of an FCC impairment on those licenses. But it really, I mean, I can't stress enough that these are non-cash charges.

Well, obviously, if interest rates start pulling back like we all hopefully expect them too that will be less of a drain on the calculation the other.

Other important factor that calculated into this year was dia's industry forecast came down for broadcast for 'twenty four.

Really unfairly.

Attaches itself to our company because it's mainly based upon large NFL city markets.

There was a lot better in small local markets than it does in the bigger markets. So we think that.

Those two things together, the rising interest rates and the industry forecasts coming down for bigger cities majority unfairly hurt us in that calculation, but yes, you are correct assuming that broadcast.

Okay hold steady or go up and interest rates come down we shouldnt see as much of the FCC impairment on those licenses, but it really I mean I can't stress enough that these are noncash charges, they don't affect future revenues future expenses.

Stuart B. Rosenstein: They don't affect future revenues, future expenses, or future cash flow generation. It really is just an academic gap calculation of how we allocated the purchase price when we bought these markets in 2010 through 2012. It has no effect whatsoever on our business, and people should adjust those out and look at our adjusted earnings per share. They should not just look at the flat bottom line earnings per share. I think people probably do, but it is sort of noise in the background.

Future cash flow generation it really is just.

In academic GAAP calculation of how we allocated purchase price when we bought these markets in 2010 to 2012. It has no effect whatsoever on our business and people should adjust those out and look at our adjusted earnings per share. They should not just look at flat bottom line earnings per share.

I think people, probably do but it is sort of noise in the background.

Is there any element to do those write downs that might make it.

James Charles Goss: Is there any element in those write-downs that might make it more possible for you to buy some additional broadcast properties if you think that might be worth it at any lower rates? Or is that going to be a completely separate issue? I don't think impairment charges in anybody's company really have anything to do with how we would value a business. We look at markets and see what their current state of cash flow is, how much infrastructure they still have left, and what we think we can add to those markets by rolling out our digital playbook. So, looking at non-cash charges for impairments really doesn't factor into our equation when, All right, thanks. And Bill, I've been talking about TSI and the issues you've had with staffing shortages for some time. It seems like you're dealing with a group of potential employees or existing employees who require a certain level of confidence, but they might also have attitudes toward workplace rules that might be different from the population as a whole. There probably is some competition for those individuals who meet all the requirements you require.

More possible for you to buy some additional broadcast properties. If you thought that might be worth it at any lower rates or is that going to be a completely separate issue.

I don't think impairment charges in anybody's company really has anything to do with how we would value our business. If we look at it we.

We look at markets and see what their current state of cash flow is.

How much infrastructure they still have left.

What we think we can add to the add to those markets by <unk>.

Rolling out our digital playbook, so looking at non cash charges for impairments has really doesn't factor into our equation and we're looking at M&A.

Alright. Thanks.

And bill talking about.

And the issues you've had with the staffing shortages for some time.

It seems like Youre dealing with a group of potential employees are existing in place.

Who require a certain level of confidence that they might also have.

Attitudes toward workplace.

That might be different from.

The population as a whole.

<unk>.

There probably is some competition for those individuals who meet all the requirements. You you require I'm just wondering if you might discuss a little bit more about the challenges of that strategy are maintaining that pace of employees and an increasing it Andrew.

Bill Wilson: I'm just wondering if you might discuss a little bit more about the challenges of that strategy of maintaining that number of employees and increasing it and restoring a growth element to it with the things you're facing that might be some headwinds as well. Yeah. Good morning.

We're starting a growth element to it with the things you are facing.

Bill Wilson: Good to hear from you. And thank you again for the question for Stu, because I think it's very astute, because it is a distraction. It's noise, as you characterized it, because it's a non-cash impairment, as Stu described it.

Alright, Thanks, Jason.

Well.

Yes, good morning, good to hear from you.

Again for the question for Steve because I think it's very astute because.

It is a distraction it's noise as you characterized it because it's noncash impairment of students scribes and people should look at adjusted EPS, which is to your point, most investors too, but sometimes theres a headline out there that doesn't take that into account. So I'm glad you highlighted that that noise in terms of tsi staffing and the challenges we face really going into 2023.

Bill Wilson: And people should look at it just in terms of EPS, which, as to your point, most investors do, but sometimes there's a headline out there that doesn't take that into account. So I'm glad you highlighted that noise. In terms of TSI staffing and the challenges we faced really going into 2023 when we had a back-to-work mandate, those are behind us at this point, but they definitely hurt us throughout 2023. There was, I think I detailed it on prior calls throughout last year, a large number of people who just rejected the return-to-work mandate and looked for other employment and moved on from Town Square Interactive. It was quite a percentage, particularly of our service organization, who were used to working from home, in essence, from March of 2020 until the end of 2022. So obviously, a few years.

<unk>.

When we had a back to work Mandy.

Those are behind US at this point would they definitely hurt us throughout 2023, there was I think I've detailed on the prior calls throughout last year that there was a large number of people who just rejected the return to work.

And look for other employment and moved on from town square and that is it was it was quite a percentage, particularly of our service organization, who are used to working from home in essence from March of 2020 until the end of 2022, So obviously a few years.

Bill Wilson: I think what's happened is, as people have come back to work, which were people who were already on our team, as well as new hires, they definitely see the benefit of the culture and being a part of a team with a common goal to help local businesses in cities outside the top 50. To your point, it's our largest office in Charlotte. It's by far the largest office.

I think what's happened is as people have come back to work, which were people who were already existing on our team as well as new hires.

They definitely see the benefit of the culture and being a part of a team with a common goal to help local businesses.

Cities outside the top 50 to your point, it's our largest office in Charlotte.

It's by far the largest office so its a lot of competition for roles. As you described but we continue to be one of the best named employers in places to work in Charlotte, We actually just won that distinction for our ignite digital advertising business as well, which we're quite proud of so they were definitely issues. They were definitely part of the reason.

Bill Wilson: So there is a lot of competition for roles, as you described, but we continue to be one of the best-named employers and places to work in Charlotte. We actually just won that distinction for our Ignite digital advertising business as well, which we're quite proud of.

Bill Wilson: They were definitely part of the reason, in addition to the macro headwinds and everything we've described in terms of inflation, wage pressures, and interest rates throughout 2023. But we also had some self-inflicted wounds, and that's why I have so much confidence. I wish I could share all the data points we're seeing on a day-to-day basis and week-to-week, but that's why I can sit here today and tell our investor base, our shareholder base, and our debt holders that the rebound has begun at Town Square Interactive. We'll return to subscriber growth in Q2. We'll return to revenue growth in Q2, and we'll return to profit growth in Q3 or Q4. And the team is the reason for that.

In addition to the Mac.

Macro headwinds and everything we've described in terms of inflation and wage pressures in interest rates throughout 2023, but we also had some self inflicted wounds.

And that's why I have so much confidence and I wish I could share all the data points, we're seeing on a day to day basis and week to week, but thats why I can sit here today and tell our investor base and our shareholder base and our debtholders that the rebound has begun a town square interactive will be returned to Scriber growth in Q2 returned to revenue growth in Q2, and we will turn to.

Profit growth in Q3, or Q4 and the team is the reason for that.

Bill Wilson: It was definitely a setback to have people choose not to come back to work. And as I've described previously, Jim, you can earn the right to work remotely. If you are a high performer and you choose to want to work a few days in and a few days out of what I would call a hybrid model, we allow that.

Was definitely a setback to have people choose not to come back to work and as I have described Jim previously as you can earn the right to work remotely. If you are a high performer and you choose to want to work a few days in and in a few days out of what I would call a hybrid model.

Allow that but you have to be a high performer to earn that and we respect that and I couldnt be more proud of the town square team Theres always going to be times, where we take a step back we fall down, but we get up every time, we attack ourselves and no. One has done a better than the town square interactive team as we go into 2024. So I appreciate the question Jim.

Bill Wilson: But you have to be a high performer to earn that, and we respect that. And I couldn't be more proud of the Town Square team. There's always going to be times where we take a step back, we fall down, but we get up every time, we attack ourselves, and no one's done it better than the Town Square Interactive team as we go into 2024. So I appreciate the question, Jim. Okay, just a couple of other ones.

Okay. Just a couple of other ones one follow up on the TSA are there any new service offerings, you are introducing or you can introduce that can sort of raise the ARPA in that sector.

James Charles Goss: One follow-up on the TSI. Are there any new service offerings you are introducing, or you can introduce, that can sort of raise the ARPU in that sector? And the other question would be with regard to Ignite.

And the other question would be with regard to ignite it seems like that's actually been the better performer.

James Charles Goss: It seems like that's actually been the better performing digital element. I wonder if you could talk about the various, specific growth components within Ignite that are really doing well right now. Yes, I'd be happy to do that. So, let me take those one at a time.

Farming digital element I Wonder if you might talk about the various.

Pacific growth components within ignite that are really doing well right now.

Yes, I'd be happy to do that so let me take those one at a time, so from a product and service and solutions offering a town square interactive we have over the past six months introduced.

Bill Wilson: So from a product, service, and solutions offering at TownSquare Interactive, we have introduced numerous new solutions for clients over the past six months. And it wouldn't raise the ARPU so much, Jim, but these new products, including a robust CRM, including the ability to text and email, including the ability to hook into QuickBooks and provide invoicing, set up appointments for contractors without having to take a call, all of these, I'd say, are important elements for small businesses that they may either lack today. We see a lot of people who don't have any of these solutions, or some of them have multiple providers for these solutions.

Numerous new <unk>.

<unk> solutions for our clients in.

It wasn't so much Jim raise the <unk>.

But these new products, including a robust CRM, including the ability to text and E mail market.

<unk> the ability to hook into Quickbooks, and provide invoicing set up appointments for contractors without having to take a call.

All of these.

Say important elements for small businesses that they may either lack that today, we see a lot of people who don't have any of these solutions or some of them have multiple providers for these solutions that we've been able to come in and say hey, we can we can make it a one stop shop and make it much easier for you. So previously.

Bill Wilson: And we've been able to come in and say, hey, we can make it a one-stop shop and make it much easier for you. So previously, if you had a great website and you were ranking very high in Google, we may not have been the best partner for you. Now I can tell you, you can continue with your great website, your great placement on Google and Bing and Yahoo and the search engine, but there are a lot of other solutions we can provide your business so that you can operate more efficiently and more profitably by using TownSquare Interactive. So it actually broadened the pool of target customers at TownSquare Interactive as we went into the end of last year. And particularly, we actually rolled this out. We trained at the end of last year, but we rolled it out in February in full force.

Previously if you had a great website and you were ranking very high in Google We may not have been the best partner for you now I can tell you you can continue with your great website, you have great placement in Google and Bing and Yahoo. In the search engine, but theres a lot of other solutions. We can provide your business. So that you can operate more efficiently.

Profitability by using town square interactive so its actually broaden the pool of target customers at town square interactive as we went into the end of last year, and particularly we actually rolled this out we trained at the end of last year, but we rolled it out in February and full four so I believe that's going to be part of the reason you see the rebound that town square.

Bill Wilson: So I believe that's going to be part of the reason you see the rebound at TownSquare Interactive in Q2 and onward is because of the products and solutions we've offered. And it's a clear differentiator for us to integrate this all in-house with our tools. So again, I know it's been a tough year in 23 for TownSquare Interactive, but 2024 is the bounce-back year. The headline numbers aren't going to look positive because of the subscriber loss, but you're going to see subscriber growth return, revenue growth return, and profit growth all return in 2024, which hopefully gives as much confidence to everybody on this call as it gives to me. And again, props to Tim Perrone and the entire TownSquare Interactive team for taking that challenge, running through walls, and getting back to being a winning division of the company again.

Interactive in Q2 and onward is because of the product and solutions we've offered.

It's a clear differentiator for us to integrate this all in house with our tools. So again I know, it's been a tough year in 'twenty three per ton it sounds square interactive, but 2024 as the bounce back year, the headline numbers arent going to look positive because of the subscriber loss, but youre going to see subscriber growth return revenue growth return and profit growth returned in 2020.

For which hopefully gives us much confidence to everybody on this call as it gives to me in again.

Tim prone in the entire town square interactive team for taking that challenge running through walls and getting back to being a winning division of the company again to your second question, Jim which I appreciate it.

Bill Wilson: Your second question, Jim, which I appreciate is, you know, digital advertising has been for many years and will continue to be the growth engine for TownSquare overall. And growing 7% last year. We're quite proud of that.

Digital advertising has been for many years and will continue to be the growth engine for town square overall growing 7% last year were quite proud of that growing $10 million full year revenue with our programmatic part as you described like Hey, can you kind of parse what's going on there and what's going well programmatic.

Bill Wilson: Growing 10 million full year revenue with our programmatic part, as you described, like, hey, can you kind of parse what's going on there and what's going well? Programmatic up year over year in the low double digits for 2023 is quite strong. It's stronger than the industry average. In terms of that area, what we're seeing is social, streaming, and television. Those two are doing the best in terms of growth rates. I'm sure you're familiar with them, Jim.

The year over year in the low double digits for 2023 is quite strong it's stronger than the industry average.

In terms of that area of what we're seeing is.

Social streaming television those two are doing the.

The best in terms of growth rates I am sure you are familiar Jim we've talked about previously streaming TV is the greatest growth area in digital advertising five years ago, we could not compete with cable and TV.

Bill Wilson: We've talked about it before, but streaming TV is the greatest growth area in digital advertising. Five years ago, we could not compete with cable and television brands. Today, not only are we competing with them, but we're sharing business and winning business. And I think as we take on more creative resources, it's one of the areas that I alluded to with SunSax winning the NAB Digital Leadership Award. We've got a whole team focused on AI in the company.

Brands today, not only are we competing with them where share shifting business and winning business and I think as we took on more creative resources. It's one of the areas that I alluded to with some snacks, winning the Nab Digital leadership Award we've got a whole team focused on AI and the company and one of the things we've already started deploying artificial intelligence.

Bill Wilson: And one of the things we've already started deploying is artificial intelligence for our creative, for our audio broadcast spots, for our digital video spots, for our digital display spots, all of those things. So the fact that we can now sell streaming TV, and I think in a differentiated way, is a real advantage for us. The other part of it that's doing quite well in Town Square Ignite, our digital advertising division, is monetizing our owned and operated properties, particularly local. Local has been up low double digits full year in 2023. I expect that to continue to be mid single digits in 2024. I expect programmatic advertising in 2024 to continue to be either high single digits or low double digits. Where we've struggled in the digital advertising front, and I was very transparent in the prepared remarks, is our national business, like XXL.com or XXLmag.com and TasteOfCountry.com. That was down over $4 million last year, more than 25%. And we see that slightly improving in Q2, but still down 20%. So that will even itself out.

<unk> for our creative for our audio broadcast spots for our digital video spots for our digital displays spots all of those things. So the fact that we can now sell streaming TV and I think in a differentiated way.

Is a real advantage for us.

The other part of it thats doing quite well and in town square ignite our digital advertising Division is monetizing our owned and operated properties, particularly local local has been up low double digits full year in 2023, I expect that to continue to be mid single digits. In 2024, I expect programmatic in 2024 to continue to.

Either high single digits or low double digits, where we have struggled in the digital advertising front and I was very transparent on the prepared remarks, as our national business like XXL dot com or <unk> dot com and taste of country Dot com that was down over $4 million last year over 25%.

We see that slightly improving in Q2, but still down 20%. So that will even itself out we are confident just like as we face some obstacles in town square interactive last year that the reason the national Ono is.

Bill Wilson: We were confident, just like when we faced some obstacles in Town Square Interactive last year. The reason the national O&O is more challenged and having a setback while local continues to grow from an O&O perspective is really the change in algorithms from Google and others that has affected our national brands, where there may be more plethora of content around hip-hop or country music whereas we've talked about in our local markets, where we're completely differentiated outside the top 50 cities in the U.S. It's been quite sad as an And as we've alluded to, there was actually a keynote at Burrell this past Monday that Jared Willig did for us.

More challenged than having a setback while local continues to grow from an oil perspective is really the change in algorithms from Google and others that has affected our national brands, where there may be more.

Plethora of content around hip hop our country music, whereas we've talked about in our local markets, where we're completely differentiated outside the top 50 cities in the U S. It's been quite said as an American citizen see the demise of newspapers and the investments and providing local news and as we've.

<unk> alluded to and there was actually a keynote at boral. This past Monday that Jared Willig did for US we stepped in many years ago and fill that void and that is one of the reasons that our digital advertising continues to grow as strongly as it does outpacing many in the industry as we got the benefit of our programmatic up last year low double digits and also our.

Bill Wilson: We stepped in many years ago and filled that void. And that is one of the reasons that our digital advertising continues to grow as strongly as it does, outpacing many in the industry. We've got the benefit of our programmatic up last year, low double digits, and also our local website and apps up, low double digits in digital advertising. And I encourage everybody on this call to spend time on our local mobile apps and local websites. They, in essence, are what people would think of a newspaper 5, 10, 15, 20 years ago.

Local website and apps up low double digits in digital advertising and I encourage everybody on this call to spend time on our local mobile apps and local website. They in essence are what people would think of a newspaper 510, 15 20 years ago, and it's a great business for us it's highly profitable is obviously increasing revenue.

Bill Wilson: And A. It's a great business for us. It's highly profitable. It's obviously increasing revenue quite nicely, as I said, in 2023, by low double digits. But it's also serving an incredibly important mission of helping our communities be informed and entertained. And that's one of the things we're proud of in our broadcast business. We believe, as Stu said, being in the broadcast business outside of the top 50 markets is, in our view, completely different than being in the broadcast business in the top 50 markets.

Quite nicely as I said in 2023, low double digits, but it's also serving a incredibly important mission of helping our communities be informed and entertained and that's one of the things. We're proud of our broadcast business. We believe as stew said being in the broadcast business outside of the top 50 markets is completely different in our view than being in the broadcast business in the.

A few markets as I said on the call we reached 50% 501 or two adults in the markets that we operate in just simply over our am FM transmission that is unlike the top 50 cities, which will be closer to maybe 25% for the number one market share.

Bill Wilson: As I said on the call, you know, we reach 50%, 5-0, one in two adults in the markets that we operate in, just simply through our AM and FM transmission. That is unlike the top 50 cities, which would be closer to maybe 25% for the number one market share. So, I couldn't be more excited about digital advertising and our Ignite business. It clearly was a standout for us in 2023. But as we go into 2024, we see improvement in our broadcast business, Q1 over Q4, Q2 over Q1 currently pacing, and we see improvement in Town Square Ignite digital advertising in terms of Q4 over, I'm sorry, Q1 over Q4 as well, and then Q2 over Q1 in terms of pacing right now. And then clearly a huge bounce back with subscriber growth, revenue growth, and profit growth from Town So, you know, although our guide, I'd say, is, you know, modest when you compare it to last year, we're going to have a standout year in each of these divisions, and we're excited by that. And obviously, we've got the benefit of politics. I'll just touch on that.

So couldnt be more excited about <unk>.

Total advertising on a night business.

Clearly was a standout for us in 2023, but as we go into 2024, we see improvement on our broadcast business Q1 over Q4 Q2 over Q1 currently pacing see improvement or in town square ignite digital advertising in terms of Q4, I'm, sorry, Q1 over Q4 as well and then Q2 over Q1 in terms of pay.

Right now and then clearly huge bounce back with subscriber growth revenue growth profit growth in town square interactive so.

Although our guide I would say is modest when you compare it to last year, we're going to have a standout year in each three of these divisions and we're excited by that and obviously, we've got the benefit of political.

I'll just touch on that it wasn't asked but PQ media, which is really a consultant in this space said that $14 $6 billion of spend will happen in 2024 that is up more than 45% from 2020, which was $10 billion. They expect radio to get $769 million.

Bill Wilson: I wasn't asked, but PQ Media, which is really a consultant in this space, said that $14.6 billion of spend will happen in 2024. That is up more than 45% from 2020, which was $10 billion. They expect radio to get $769 million in political advertising. That's an increase of 35% for 2020 just for radio. That's an expected 35% increase in radio spend in politics. For us, we're very well positioned. That's why we still alluded in our guide to $14 to $6 million of political revenue for the year. It's obviously going to be heavily back-weighted because there really were no primaries this year. You know, everyone knew who the candidates would be. So, the spending was much less and will be until we really get to August and Labor Day. But for Town Square, for the presidential election, we've got important states like Michigan and Arizona. In the Senate, Michigan, Arizona, and Montana.

Political advertising, that's an increase of 35% for 2020 just for radio.

We expect to 35% increase and radio spend and political for US we're very well positioned that's why we alluded in our guide is 14% to $6 million of political revenue for the year, obviously is going to be heavily back weighted because there really was no primaries. This year.

Everyone knew who the candidates would be so the spend was much less and will be until we really get to August and labor day, but for town square for the presidential we've got important states like Michigan, and Arizona, and the Senate, Michigan, Arizona, Montana, and the house, we've got multiple including Bangor, and Presque Isle, Maine, Lansing in Flint, Michigan CRA Vista.

James Charles Goss: In the House, we've got multiple, including Bangalore and Presque Isle, Maine, Lansing and Flint, Michigan, Sierra Vista, Arizona, New Jersey, Hudson Valley, and then we've also got Governor Race in New Hampshire. So, a lot of tailwinds for Town Square overall in each of our divisions in 2024. Well, that was very complete, and I appreciate it very much. I appreciate the question, Jim. Anything else? No, that's all for now. That's it.

Arizona, New Jersey Hudson Valley, and then we've also got Governor race in New Hampshire, So a lot of tailwind for town square overall in each of our divisions in 2024.

Alright, well that what that was.

It's very complete Tonight I appreciate it very much.

I appreciate the question Jim anything else.

And that's for now that's it thank you Tim.

Bill Wilson: Thank you, Jim. There are no further questions at this time. I will now hand the conference over to Bill Wilson.

There are no further questions at this time I will now hand, the conference over to Bill Austen.

Bill Wilson: Thank you so much, Operator, and thank you to each of you who joined us this morning. We appreciate you taking the time. As Claire said at the start of the call, I would encourage all of our investors and shareholders and debt holders to read the shareholder letter, which is now available this morning. I encourage you to reach out if you have any questions. My email is bill@townsquaremedia.com. I'd love to hear from you. I couldn't be more proud of the Townsquare team. We feel, as you can hear through Stu's remarks and my remarks, quite optimistic about the year. We're proud of our cash flow generation last year, increasing $18 million by 35% to $68 million, which allowed us to also reduce our net leverage to 4.4 times, with $61 million of cash on hand.

Thank you so much operator, and thank you to each of you who joined this morning. We appreciate your taking the time as Claire said at the top of the call I would encourage all of our investors and shareholders and debt holders to read the shareholder letter, which is now available this morning.

I encourage you to reach out if you have any questions by email is bill at town Square media Dot Com I'd love to hear from you couldn't be more proud of the town square team, we feel as you could hear through on <unk> remarks, and my remarks quite optimistic for the year. We're proud of our cash flow generation last year, increasing to $18 million by 35% to 68 million.

Which allowed us to also reduce our net leverage to four four times with $61 million of cash on hand, and we're proud of the board supporting us and increasing the dividend by over 5% to <unk> 79 per annual share.

Bill Wilson: And we're proud of the board supporting us and increasing the dividend by over 5% to $0.79 per annual share, which today is at a 7.5% yield. So I'm feeling quite bullish and optimistic as we go through this year, and I appreciate you taking the time to hear from us this morning. We have the benefit of reconnecting in less than two months, so I look forward to giving you an update in about two months again on the business. So, thank you again. Have a great day and weekend. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

That today is at a seven 5% yield so feeling quite bullish and optimistic as we go through this year and I. Appreciate you taking the time to hear from US. This morning, we have the benefit of reconnecting and less than two months I look forward to giving you an update in about two months again on the business. So thank you again have a great day and weekend.

Okay.

Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.

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