Q1 2024 Townsquare Media Inc Earnings Call

Operator: Good morning and welcome to Townsquare Media's first quarter 2024 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 listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. With that said, I would like to introduce the first speaker for today's call, Claire Yenicay, Executive Vice President.

Good morning, and welcome to town Square Media's first quarter 2024 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 listen only mode. A brief question and answer session 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: Thank you, Operator, and good morning to everyone. Thank you for joining us today for Townsquare's first quarter 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 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from these statements.

Claire: Thank you operator, and good morning to everyone. Thank you for joining us today for Thomas for its first quarter 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.

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 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.

Claire: These statements are considered forward looking statements under the Safe Harbor provisions of the private Securities Litigation Reform Act of 90, 95 and are subject to risks and uncertainties that could cause actual results to differ materially from these statements.

Claire: 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 Companys annual report on Form 10-K filed with the SEC. We may also discuss certain non-GAAP financial measures, including adjusted EBITDA and adjusted operating income, which we may refer to as profit in our remarks such non-GAAP.

Claire: Measures should be used in conjunction with all the information contained in our quarterly yearend and current reports available on our website.

Claire Yenicay: I would also encourage all participants to go to our corporate website and download our investor presentation, as Bill will reference some of the slides during our discussion this morning. At this time, I would like to turn the call over to Bill Wilson.

Claire: I would also encourage all participants to go to our corporate website and download our investor presentation as Phil referenced some of the slides during our discussion. This morning 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 everyone.

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

Bill Wilson: We're very pleased to share with you that Townsquare's first quarter results met our previously issued guidance for both net revenue and adjusted EBITDA. We are building momentum throughout the year and anticipate delivering stronger financial results each quarter in 2024, ultimately setting us up for a strong 2025. In the first quarter, we again outperformed our competitors and gained market share, primarily due to our local focus and our differentiated digital platform. Additionally, we continue to generate strong cash flow, granting us the ability to invest in our digital growth engine and affording us financial flexibility.

Bill Wilson: We're very pleased to share with you that town squares first quarter results met our previously issued guidance for both net revenue and adjusted EBITDA.

Bill Wilson: We are building momentum throughout the year and anticipate delivering stronger financial results each quarter in 2024.

Ultimately setting us up for a strong 2025.

In the first quarter, we again outperformed our competitors and gained market share primarily due to our local focus and our differentiated digital platform.

Bill Wilson: Additionally, we continue to generate strong cash flow.

Bill Wilson: Granting us the ability to invest in our digital growth engine.

Bill Wilson: Affording us financial flexibility.

Bill Wilson: By now, I believe that our investors recognize that our digital business is a true differentiator for Townsquare. As highlighted on slide 12, in Q1 2024, approximately 53% of our company's total net revenue came from our digital solutions, more than double the industry average, and 53% of our total adjusted operating income also came from our digital solutions. This highlights a point we often make and can't state enough.

Bill Wilson: By now I believe that our investors recognize that our digital business is a true differentiator for town square.

Bill Wilson: As highlighted on slide 12 in Q1 2020 for approximately 53% of our company's total net revenue came from our digital solutions more than double the industry average.

Bill Wilson: And 53% of our total adjusted operating income also came from our digital solutions.

Bill Wilson: This highlights the point, we often make and Kansas state enough.

Bill Wilson: Townsquare is no longer the radio broadcast company it was when it was founded in 2010. Townsquare has evolved and transformed into a digital-first local media company that is truly distinguished from our local media peers, validating our focus on markets outside the top 50 U.S. cities with a world-class team and unique and differentiated strategy, assets, platforms, and solutions. This critical point of differentiation has fortified my confidence in our business model and our path forward over the next number of years. But it's not me just saying that.

Bill Wilson: <unk> is no longer the radio broadcast company was when it was founded in 2010.

Bill Wilson: Hello Square has evolved and transformed into a digital first local media company that is truly distinguished from our local media peers.

Bill Wilson: Validating our focus on markets outside the top 50 U S cities.

Bill Wilson: With a world class team and a unique and differentiated strategy asset platforms and solutions.

Bill Wilson: This is a critical point of differentiation has fortified my confidence in our business model and our path forward over the next number of years.

Speaker Change: But it's not me just saying that.

Bill Wilson: I am very pleased to share that Boyer Research, founded in 1975 and now a leading firm providing in-depth, independent research on publicly traded U.S. companies, highlighted Townsquare as their opportunity pick last month, publishing a comprehensive and very favorable report on Townsquare. I would encourage all of our current and prospective investors to read this report, which can be found via a link in the news section of our company website, as well as in our updated investor presentation.

I am very pleased to share that Borja research founded in 1970, 5% and now a leading firm providing in depth independent research on publicly traded U S companies highlighted town square as their opportunity pick last month publishing a comprehensive and very favorable report on town square.

Speaker Change: I would encourage all of our current and prospective investors to read this report, which can be found by a link in the in the news section of our company website.

Speaker Change: As well as in our updated investor presentation.

Bill Wilson: It is worth noting that the report derives an intrinsic value for Townsquare of $25.30 per share. Additionally, Jonathan Boyer asked me to be a guest on his podcast, The World According to Boyer, which was a lot of fun to do and can also be accessed on our website, on Boyer's research website, or on your favorite podcasting platform.

It is worth noting that the report derived an intrinsic value for town square up $25 30 per share.

Speaker Change: Additionally, Jonathan Boy you asked me to be a guest on his podcast the world. According to <unk>, which was a lot of fun to do and can also be accessed on our website.

Speaker Change: <unk> research website.

Speaker Change: Your favorite podcasts platform.

Bill Wilson: I'm very pleased to share that in each of our main businesses, Ignite, Townsquare Interactive, and Broadcast Advertising, Q1 performed better than Q4 as momentum continued to build for us, which we expect will continue for the remainder of 2024 and into 2025. As I stated it would happen on our last call in March, our digital advertising net revenue returned to growth in Q1, with revenue increasing plus 1% over the prior year period. As also noted on our last call, our growth was driven by strength in our digital programmatic advertising revenue, as well as stability in our local digital advertising revenue base, which was partially offset by steep national digital advertising declines.

Speaker Change: I am very pleased to share that in each of our main businesses ignite task, where interactive and broadcast advertising Q1 performed better than Q4 as momentum continues to build for us, which we expect will continue for the remainder of 2024 and into 2025.

Speaker Change: As I stated would happen on our last call in March our digital advertising net revenue returned to growth in Q1 with revenue increasing plus 1% over the prior year period.

Speaker Change: Also noted on our last call our growth was driven by strength in our digital programmatic advertising revenue as well as stability at our local digital advertising revenue base, which was partially offset by steep national digital advertising declines.

Bill Wilson: We are really quite proud of our digital advertising business, which when excluding national advertising revenue, would have grown at a mid-single digit growth rate in the first quarter. Our local digital audience on our owned and operated websites has continued to grow, and that is due to the important role we play in our medium and small-sized cities. Because of the dwindling availability of local news sources in small and mid-sized markets across the country, there is an expanding void of local information available in our communities both online and on air.

Speaker Change: We are really quite proud of our digital advertising business, which when excluding national advertising revenue would have grown at a mid single digit growth rate in the first quarter.

Speaker Change: Our local digital audience on our owned and operated websites has continued to grow and that is due to the important role we play in our mid and small sized cities.

Speaker Change: Because of the dwindling availability of local news sources in small and mid sized markets across the country. There is expanding void of local information available in our communities both online and on air we have stepped in a town square to fill that void.

Bill Wilson: We have stepped in at Townsquare to fill that void. Our local websites are, in essence, what people would have thought of a newspaper 10 years ago. This has led to our local digital audience consistently growing, and in fact, we reached an all-time high of 70 million unique visitors to our local websites in March, up plus 16 percent year over year. Local audience growth, combined with strong engagement metrics, has enabled strong local digital revenue performance.

Speaker Change: Our local websites are in essence, what people would've thought of a newspaper 10 years ago. This has led to our local digital audience to consistently grow and in fact, we reached an all time high 70 million unique visitors to our local websites in March up.

Speaker Change: 16% year over year.

Speaker Change: Local audience growth combined with strong engagements metrics has enabled strong local digital revenue performance.

Bill Wilson: However, we are most excited about our digital programmatic business, where we have unlimited growth potential and extreme confidence and which will be the largest growth driver of our digital advertising business going forward. Programmatic makes up about 60% of our digital advertising segment today and is the fastest growing revenue stream in our company. All in all, 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, higher average spend, and higher client retention rates.

Speaker Change: However, we are most excited about our digital programmatic business.

Speaker Change: Where we have unlimited growth potential and extreme confidence and which will be the largest growth driver of our digital advertising business going forward.

Speaker Change: Programmatic make up about 60% of our digital advertising segment today and is the fastest growing revenue stream in our company.

Speaker Change: All in all we are digital advertising success to our sophisticated digital products and solutions, which are entirely in house.

Speaker Change: Giving us 100% control 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 higher average spend and higher client retention rates and.

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

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

Bill Wilson: This very large first-party data set allows us to provide detailed and unique insights about consumer behaviors, audience interests, and importantly, purchase intent that drive real results with strong ROI for our clients, giving us a true strategic advantage over our local competition. We are very confident in our ability to continue to grow this business and capitalize on our competitive advantage in our cities. Owning our tech platforms in-house, combined with the breadth of our digital solutions and quality of our first-party data, is a competitive advantage in any size market.

This very large first party data set allows us to provide detailed and unique insights about consumer behaviors.

Speaker Change: Audience interest and importantly purchase intent that drive real results with strong ROI for our clients.

Speaker Change: Giving us a true strategic advantage over our local competition.

Speaker Change: We are very confident in our ability to continue to grow this business and capitalize on our competitive advantage in our cities.

Speaker Change: Owning our tech platforms in house combined with the breadth of our digital solutions and quality of our first party data 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.

Bill Wilson: 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. Our Q1 digital advertising revenue performance improved from Q4 and we expect to have similar growth trends in Q2 as in Q1 before improving more strongly in the second half of 2024. This is tied to ongoing national digital advertising revenue weakness, which we outlined in detail on our last call, which declined negative 29% year-over-year in the first quarter and is pacing even worse in Q2, with an expected year-over-year revenue decline of over 30% in Q2, which is over a million dollars. These revenue declines are, in large part, due to significant changes to algorithms for Google and social media referrals that have negatively impacted our national

Speaker Change: Our Q1 digital advertising revenue performance improved from Q4, and we expect to have similar growth trends in Q2 as Q1 before improving more strongly in the second half of 2024.

Speaker Change: This is tied to ongoing national digital advertising revenue weakness, which we outlined in detail on our last call, which declined negative 29% year over year in the first quarter and is pacing even worse in Q2 with an expected year over year revenue decline of over 30% in Q2, which is over 1 billion. These revenue declines are in large part.

Speaker Change: Significant changes to the algorithm for Google and social media referrals that have negatively impacted our national audience and as you've probably seen we are not alone in feeling that impact Fortunately just as with our broadcast advertising national was only a small portion of our digital advertising revenue business and we anticipate that national digital revenue declines.

Bill Wilson: Fortunately, just as with our broadcast advertising, national is only a small portion of our digital advertising revenue business, and we anticipate that national digital revenue declines will begin to moderate meaningfully in the third and fourth quarters, leading to stronger results for this segment as a whole in the back half of 2024. Overall, we are confident that favorable industry trends, together with our in-house full suite of marketing solutions, our investment in our original content strategy, and our first party data advantage, will continue to drive strong digital advertising growth for Townsquare.

Speaker Change: We'll begin to moderate meaningfully in the third and fourth quarters, leading to a stronger results for this segment as a whole in the back half of 2024 overall.

Speaker Change: Overall, we are confident that favorable industry trends together with our in house full suite of marketing solutions, our investment in our original content strategy and our first party data advantage. We will continue to drive strong digital advertising growth for town square.

Bill Wilson: As I shared on our last call, we were asked if we still believe in the growth strategy and addressable market of Townscore Interactive given last year's challenges. And the answer is, yes, without a doubt, unquestionably so, to that point.

As I shared on our last call. We have been asked if we still believe in the growth strategy and addressable market of task or interacted given last year's challenges.

Speaker Change: And the answer is yes, without a doubt unquestionably so.

Speaker Change: To that point.

Bill Wilson: I am very pleased, so pleased this morning to share with you today that Townsquare Interactive, our subscription digital marketing solutions business, is firmly on the path to recovery and growth after attacking our 2023 challenges head on. As I shared the last time we were together, the first sign of the rebound at Townsquare Interactive is the return of subscriber growth. The second sign of the rebound is month-over-month revenue growth.

I am very pleased so pleased this morning to share with you today that town square interactive our subscription and digital marketing solutions business is firmly on the path to recovery and growth after attacking our 2023 challenges head on.

Speaker Change: As I shared the last time, we were together the first sign of the rebound that tells where interactive is the return to subscriber growth.

Speaker Change: The second sign of the rebound is month over month revenue growth.

Bill Wilson: And given our continued, ongoing, aggressive investment in Townsquare Interactive, the third sign of returning to strength is month-over-month profit growth. Therefore, I'm pleased to share with you that, ahead of my own expectations, in March, Townsquare Interactive grew net subscribers for the first time in 17 months and generated month-over-month revenue growth as well. This very positive trend continued in April, and we expect this momentum to not only continue but to grow in Q2 and beyond.

Speaker Change: And given our continued ongoing aggressive investment in sales for interactive.

Speaker Change: Third sign of returning to strength is month over month profit growth.

Speaker Change: Therefore, I am pleased to share with you that ahead of my own expectation in March town Square Interactive grew net subscribers for the first time in 17 months and generated month over month revenue growth as well.

Speaker Change: This very positive trend continued in April and we expect this momentum to not only continue but to grow.

Speaker Change: ROE in Q2 and onward, I am very proud of our town square interactive team.

Bill Wilson: I am very proud of our Townsquare Interactive team. It is also worth noting that Net Subscriber Losses were better than I laid out on our last call, which was when I was expecting Subscriber Losses in Q1 to be roughly 50% of Q4's losses. Yet subscriber losses actually declined 60% in Q124 as compared to Q4. And, as I just shared, we added net subscribers in March, earlier than we originally expected, and again, we did that in April.

Speaker Change: It is also worth noting that net subscriber losses were better than I laid out on our last call, which was what I was expecting Scripps subscriber losses in Q1 that would be roughly 50% of Q4's losses.

Speaker Change: <unk> subscriber losses actually declined 60% in Q1 24 as compared to Q4.

Speaker Change: And as I just shared we added net subscribers in March earlier earlier than we originally expected and again, we did that in April.

Bill Wilson: It is also good to note that our poopoo new sales are increasing. In the first quarter, Townsquare Interactive's net revenue declined negative 15% year-over-year, exactly in line with the expectations that I shared with you on our last call.

Speaker Change: It is also good to note that RFP for new sales is increasing.

Speaker Change: In the first quarter town square interactive net revenue declined negative 15% year over year exactly in line with the expectations that I shared with you on our last call.

Bill Wilson: The positive development is that on a quarter-over-quarter basis, net revenue declined less than 5 percent because we returned to month-over-month revenue growth in March. Townsquare Interactive's first quarter profit declined by negative 10% year-over-year, also in line exactly with the expectations we outlined on our last call, and we managed expenses very well such that we grew our profit margin from 26% in Q1 of 2023 to 28% in Q1 of 20 Looking ahead to Q2, we expect to see net subscriber growth for the quarter, which will drive continued month-over-month revenue growth trends. However, month-over-month profit growth will be dependent on how aggressive we can continue to invest in the businesses in Charlotte and Phoenix.

Speaker Change: Positive development is that on a quarter over quarter basis, net revenue declined less than 5% because we returned to month over month revenue growth in March.

Speaker Change: Town square interact as first quarter profit declined negative 10% year over year also in line exactly with the expectations, we outlined on our last call and we managed expenses very well such that we grew our profit margin from 26% in Q1 of 2023% to 28% in Q1 of 2024.

Speaker Change: Looking ahead to Q2.

Speaker Change: We expect to see net subscriber growth for the quarter.

Speaker Change: Which will drive continued month over month revenue growth trends.

Speaker Change: Month over month profit growth will be dependent on how aggressive we can continue to invest in the businesses in Charlotte and Phoenix.

Bill Wilson: Yet, we still anticipate a return to month-over-month profit growth in Q4 of 2024. Also, as I detailed on the last call, even though we are now back on a positive path of consistent growth at Townsquare Interactive, given the loss of over 7,000 subscribers from Q1 of 23 through Q1 of 24, as you would expect, year-over-year revenue and profit comparisons will still look very negative. With that context provided, we expect Townsquare Interactive's second quarter net revenue to decline approximately 13 percent, which reflects last year's challenges, not the subscriber and month-over-month revenue growth we are currently delivering.

Speaker Change: Yet, we still anticipate a return to month over month profit growth in Q4 of 2024.

Speaker Change: Also as I detailed on the last call even though we are now back on a positive path of consistent growth at <unk> interactive.

Speaker Change: Given the loss of over 7000 subscribers from Q1, 'twenty threes through Q1 of 'twenty four.

As you would expect year over year revenue and profit comparisons will still look very negative.

Speaker Change: With that context provided we expect house square interactive second quarter net revenue to decline approximately 13%.

Speaker Change: Which reflects last year's challenges not the subscriber and month over month revenue growth. We are currently delivering in the long term. We are confident that we have a long sustainable runway ahead of us with over 23000 subscribers at the end of Q1, approximately 58% of which are outside of our local media footprint and an addressable market of nearly.

Bill Wilson: In the long term, we are confident that we have a long, sustainable runway ahead of us. With over 23,000 subscribers at the end of Q1, approximately 58 percent of which are outside of our local media footprint, and an addressable market of nearly 9 million target customers, we are only scratching the surface. With our existing subscriber base, superior product offering, and a huge market opportunity with nearly 9 million target customers, as outlined on slide 15, I am confident that Townsquare Interactive is on track and set up for long-term profitable growth and success.

Speaker Change: 9 million target customers, we are only scratching the surface.

Speaker Change: With our existing subscriber base superior product offering and a huge market opportunity of nearly $9 million target customers as outlined on slide 15, I am confident that town square interactive is on track and set up for long term profitable growth and success.

Bill Wilson: I am also very pleased to share with you that our broadcast advertising revenue declines have stabilized, and first quarter revenue declined just 1%, an improvement from Q4's negative 2.5% decline. Similar to last year's trends, local outperformed national in the first quarter, as national declined negative 9% year over year.

Speaker Change: I'm also very pleased to share with you that our broadcast advertising revenue declines have stabilized and first quarter revenue declined just 1% an improvement from Q4 is negative two 5% decline.

Similar to last year's trends local outperformed national in the first quarter as national decline negative 9% year over year.

Bill Wilson: Thankfully, just like our digital business, our national broadcast exposure is limited, with less than 10% of our total revenue coming from national broadcast marketplaces. Overall, we outperformed the industry in the first quarter, gaining local and national broadcast market share, according to Miller Capital. I am very proud of our team in achieving this market share growth as it demonstrates the benefits and importance of differentiated local content on our local radio broadcast. There is no better team of content contributors and our sales team. Politics is off to a slow start for us and the industry overall due to the lackluster primary season.

Speaker Change: Equally just like our digital business, our national broadcast that exposure is limited with less than 10% of our total revenue coming from broadcast national marketplace.

Speaker Change: Overall, we outperformed the industry in the first quarter, gaining local and national broadcast market share. According to Miller Kaplan.

Speaker Change: I am very proud of our team in achieving this market share growth as it demonstrates the benefits and importance of differentiated local content on our local radio broadcast.

Speaker Change: No better team of content contributors and our sales teams.

Speaker Change: Political is off to a slow start for us and the industry overall due to the lackluster primary season.

Bill Wilson: Our first quarter political revenue of $1.1 million is only 80% of our political revenue in Q1 of 2020. However, we remain very optimistic about our full-year estimation of $14 million to $16 million of political revenue as compared to the all-time high of $16 million recorded in the 2020 political season. Industry specialists are predicting record political expenditures in 2024, benefiting Townsquare. We believe Townsquare's ability to drive profitable, sustainable digital growth is a key differentiator for our company.

Speaker Change: Our first quarter political revenue of $1 $1 million is only 80% of our political revenue in Q1 of 2020. However, we remain very optimistic on our full year estimation of 14 million to $16 million of political revenue as compared to the all time high of $16 million recorded in the 2020 political season.

Speaker Change: Industry specialists are predicting record political expenditures in 2024, benefiting town square, especially in our Michigan, Montana, Arizona, New Jersey, and New Hampshire markets, where they expect close races for governor of ship House and Senate seats.

Speaker Change: We believe town squares 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 is an extremely valuable asset with significant cash flow.

Bill Wilson: 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. In fact, we would never achieve the success we've had in building an at-scale, differentiated digital audience and resulting digital advertising and digital marketing solutions businesses if it wasn't for our continued strong local radio presence and performance.

Speaker Change: <unk> unparalleled consumer reach and an important local connection to our audience. In fact, we would have never achieved the success. We have had in building at scale differentiated digital audience, and resulting digital advertising and digital marketing solutions business. It if it wasn't for a continued strong local radio presence and performance.

Bill Wilson: Our traditional AM, FM, over-the-air broadcast continues to reach, on average, one out of every two adults in our market. Very, very powerful and very, very important, and because of the powerful 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.

Speaker Change: Our traditional am FM over the air broadcast continues to reach on average one out of every two adults in our markets.

Speaker Change: Very very powerful and very very important and because of the powerful combination of town squares digital plus radio plus live events plus local investment we believe that our flywheel will continue to blaze forward and gain momentum.

Bill Wilson: I would also like to shine a bright, bright spotlight on a very important aspect of our business model, our significant cash flow generation. Due to our strong cash flow characteristics, we are afforded financial flexibility to build shareholder value. Over the past several years, we have retired $46 million of debt, repurchased over 16 million shares, and we also initiated a dividend and then raised it by 5% after the first year, all while continuing to invest in our digital growth engine.

Speaker Change: I'd also like to shine, a bright bright spotlight at a very important aspect of our business model are significant cash flow generation.

Speaker Change: Due to our strong cash flow characteristics, we are afforded financial flexibility to build shareholder value.

Speaker Change: Over the past several years, we have retired $46 million of debt, we have repurchased over 16 million shares and we also initiated a dividend and then raised it by 5% after the first year, all while continuing to invest in our digital growth engine in April using cash on her.

Bill Wilson: In April, using cash on hand, we were able to execute a very accretive share repurchase from MSG at an 11% discount to the pre-announcement share price and execute an option buyback at an attractive price point, thereby avoiding shareholder dilution. Stu will discuss both of these attractive transactions in more detail shortly, with $28 million of cash on hand at the end of April and net leverage of 4.6 times as of March 31st.

Speaker Change: We were able to execute at a very accretive share repurchase from MSG and an 11% discount to the pre announcement share price and execute an option buyback in an attractive price point, thereby avoiding shareholder dilution still will discuss both of these attractive transactions shortly in more detail.

With $28 million of cash on hand at the end of April and net leverage of four six times as of March 31.

Bill Wilson: We remain very confident in our current capitalization and the strength of our balance sheet. And we are pleased that we can continue to deliver attractive current cash returns for our equity shareholders. As we say internally, how high is high? Now, I'd like to call over to Stu, who will go through our results in even more detail, as well as provide you with our second quarter guidance. Stu, please.

Speaker Change: We remain very confident in our current capitalization and the strength of our balance sheet and we are pleased that we can continue to deliver attractive current cash returns for our equity shareholders as we say internally how high is high.

Speaker Change: And now I'd like to turn the call over to Sue who go through our results in even more detail as well as provide you with our second quarter guidance still.

Sue: Take it away.

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

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

Stuart B. Rosenstein: We're pleased to report that our first quarter results met our revenue and adjusted EBITDA guidance. First quarter net revenue declined 3.4% year-over-year to $99.6 million, within our guidance range of $98.5 million to $100 million. Political, which is off to somewhat of a slower start in 2024 than the 2020 presidential cycle, came in at 1.1 million, 20 percent below Q1 2020's 1.3 million.

Sue: We're pleased to report that our first quarter results met our revenue and adjusted EBITDA guidance.

Sue: First quarter net revenue declined three 4% year over year to $99 6 million within our guidance range of 98 5 million to $100 million.

Political which is off to somewhat of a slower start in 2020 for NAND in 2020 presidential cycle came in at $1 1 million, 20% below Q1, $2021 3 million.

Stuart B. Rosenstein: Excluding political, first quarter net revenue declined 4.2%. First quarter adjusted EBITDA declined 9.9% year-over-year to $17.5 million, also within our guidance range of $17.5 to $18.5 million. First quarter broadcast advertising net revenue decreased just 1%, which was a sequential improvement from the fourth quarter decline. First quarter broadcast profit margins meaningfully expanded on a year-over-year basis, from 19% in Q1 2023 to 22% in Q1 2024 due to cost reductions we made in 2020.

Sue: Excluding political first quarter net revenue declined four 2%.

Sue: First quarter adjusted EBITDA declined nine 9% year over year to $17 5 million also within our guidance range of 17, five to $18 $5 million.

Sue: First quarter broadcast advertising net revenue decreased just 1%, which was a sequential improvement from fourth quarter declines.

Sue: First quarter broadcast profit margins meaningfully expanded on a year over year basis from 19% in Q1, 2023% to 22% in Q1 2024 due to cost reductions. We made in 2023 as a reminder, broadcast profit margins tend to be lowest in the first quarter of each.

Stuart B. Rosenstein: As a reminder, broadcast profit margins tend to be lowest in the first quarter of each year due to revenue cyclicality. However, broadcast profit margins are expected to expand to the high 20s in the second quarter like in previous years.

Sue: Due to revenue cyclicality.

Sue: Broadcast profit margins are expected to expand to the high <unk> in the second quarter like in previous years.

Stuart B. Rosenstein: As we have outlined on previous calls, we anticipate that at Townsquare Interactive, which is our subscription digital marketing solution segment, net revenue and direct profit will decline on a year-over-year basis due to the loss of subscribers in 2023. Q1 2024, even though we have returned to subscriber growth and month-over-month revenue growth sooner than we anticipated, as Bill mentioned earlier. In the first quarter, net revenue decreased 15.3% as compared to the prior year, and profit decreased 9.7% year over year. However, margins were strong at approximately 28 percent in Q1, an improvement from Q1 2023's 26 percent profit margin despite our continued investment in the business, including the ongoing ramp of our newly opened Phoenix location. Townsquare Ignite, our digital advertising segment, returned to growth in the first quarter as strength in programmatic advertising offset ongoing weakness in national digital advertising, which declined 29% in the first quarter, as Bill detailed earlier.

Sue: As we've outlined on previous calls we anticipate that it sounds for interactive, which is a subscription digital marketing solution segment.

Sue: Net revenue in direct profit will decline on a year over year basis due to the loss of subscribers in 2023 in Q1 2024, even though we have return to subscriber growth and month over month revenue growth sooner than we anticipated.

Sue: As Bill mentioned earlier.

Sue: In the first quarter net revenue decreased 15, 3%.

Sue: <unk> to the prior year and profit decreased nine 7% year over year.

Sue: Margins were strong at approximately 28% in Q1, an improvement from Q1 2023, 26% profit margin. Despite our continued investment in the business, including the ongoing ramp of our newly opened in Phoenix location.

Sue: Town square ignite our digital advertising segment returned to growth in the first quarter as strength in programmatic advertising offset ongoing weakness in national digital advertising, which declined 29% in the first quarter as bill detailed earlier.

Stuart B. Rosenstein: In total, total first quarter digital advertising net revenue increased 1.3% year-over-year. We are experiencing similar trends in Q2 2024, with solid programmatic growth offsetting steep national digital advertising declines of over 30%. As we look out to Q3 and Q4, our current forecast, while early, indicates steady improvement as declines in national digital advertising begin to moderate. Importantly, we expect digital advertising margins to return to mid to high 20s in the second quarter. Our other category, which is comprised of live events activity, generated $1.8 million of revenue in the first quarter, a decline of 7.8% year-over-year, and a small profit of $441,000, representing a strong first-quarter profit margin of 25%.

Sue: In total first quarter digital advertising net revenue increased one 3% year over year.

Sue: We are experiencing similar trends in Q2, 2024 with solid programmatic growth offsetting steep national digital advertising declines of over 30%.

Sue: As we look out to Q3 and Q4, our current forecast well early indicate steady improvement as declines in national digital advertising begin to moderate.

Sue: Importantly, we expect digital advertising margins to return to mid to high <unk> in the second quarter.

Sue: Our other category, which is comprised of live events activity generated $1 $8 million of revenue in the first quarter, a decline of seven 8% year over year and a small profit of $441000, representing a strong first quarter profit margin of 25%.

Stuart B. Rosenstein: In 2024, we are focusing on a refined live event schedule that eliminates unprofitable or barely profitable events. As a result, we expect to see a small full-year revenue decline in 2024, but with profit and margin expansion. As a reminder, a live event activity should not be viewed as a growth driver or revenue center for Townsquare but rather as a marketing arm of the company.

Sue: In 2024, we are focusing on a refined live events schedule that eliminates unprofitable or barely profitable events. So we expect to see a small full year revenue decline in 2024, but with profit and margin expansion.

Sue: As a reminder, a live events activity should not be viewed as a growth driver for revenue center for town square.

Rather our marketing along with the company.

Stuart B. Rosenstein: Our first quarter net income improved by $3.5 million year-over-year, from a loss of $1.9 million in Q1 2023 to net income of $1.6 million, or six 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 is for GAAP financial statement purposes only. We maintain significant tax attributes, including more than $100 billion of federal NOL carry-forwards and other substantial tax shields related to the tax amortization of our intangible assets.

Sue: Our first quarter net income improved by $3 $5 million year over year from a loss of $1 $9 million in Q1, 2023 to net income of $1 6 million or six cents per diluted share.

Sue: 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.

Sue: Maintained significant tax attributes, including more than $100 billion of federal NOL carryforwards, and other substantial tax shields related to the tax amortization of our intangible assets.

Stuart B. Rosenstein: We continue to believe that we will not be a material cash taxpayer until approximately 2026. As Bill highlighted, and I would again like to emphasize, we consistently have strong cash flow generation. We generated $1.7 million of cash flow from operations in Q1 2021, ending the quarter with $57 million of cash, down only $4 million from year-end despite making our $18 million interest payment and paying $3 million of dividends. During the first quarter, we also repurchased approximately $4 million worth of shares at an average price of $10.80 per share through our ongoing Share Buy Dot program.

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

Sue: As bill highlighted and I would again like to emphasize we consistently have strong cash flow generation, we generated $1 $7 million of cash flow from operations in Q1 2024, ending.

Sue: Ending the quarter with $57 million of cash down only $4 million from year end.

Sue: <unk>, making our $18 million interest payments and paying $3 million of dividends.

Sue: During the first quarter, we also repurchased approximately $4 million worth of shares at an average price of $10 80 per share through our ongoing share buyback program.

Stuart B. Rosenstein: On April 1st, we repurchased and subsequently retired 1.5 million shares of Madison Square Garden's Class A shares, or just under 10% of our shares outstanding, at a price of $9.76 per share, representing an 11% discount to the pre-announced share price.

Sue: On April one we repurchased and subsequently retired one 5 million shares of Madison Square Gardens class a shares or just under 10% of our shares outstanding at a price of $9 76 per share representing an 11% discount to the pre announced share price.

Stuart B. Rosenstein: This transaction followed the June 23rd repurchase of another 1.5 million shares from MSG for $9.70. This share buyback was immediately accretive to our shareholders, and we were able to use cash on hand to satisfy the $15 million purchase. Since 2021, we have repurchased 16.2 million shares at an average price of $7.19, while simultaneously reducing leverage over that period of time. At the end of the first quarter, our net leverage was 4.56 times and 4.7 times pro forma for the April 1st MSG share repurchase.

Sue: This transaction followed the June 23rd repurchase another one 5 million shares from MSG at $9 70 per share.

Sue: This share buyback was immediately accretive to our shareholders and we were able to use cash on hand to satisfy the $15 million purchase price.

Sue: In 2021, we have repurchased $16 2 million shares at an average price of $7 19, well.

Sue: While simultaneously reducing leverage over that period of time.

Sue: At the end of the first quarter, our net leverage was 456 times and four seven times pro forma for the April one MSG share repurchase.

Stuart B. Rosenstein: In an effort to build shareholder value by limiting shareholder dilution, last month, we repurchased $3.2 million in-the-money options held by members of the management team and board of directors. These in-the-money options were granted at the company's 2014 IPO, demonstrating that a long-term incentive plan was and continues to be effective in retaining top talent, and were set to expire this July. Our repurchase of these options eliminated the overhang and shareholder dilution that would have occurred when these options were exercised in the open market. These options are strong cash flow generators, and have and will continue to provide us with financial flexibility, giving us the opportunity to advantageously buy our stocks when they're trading below value, which we, and as Bill highlighted earlier from firms like Boyer Research, also believe it is today.

Sue: In an effort to build shareholder value by limiting shareholder dilution last month, we repurchased three 2 million in the money options held by members of the management team and board of directors.

Sue: In the money options were granted at the Companys 2014, IPO demonstrating that our long term incentive plan was and continues to be effective and retaining top talent.

Sue: We are set to expire this July.

Sue: Our repurchase of these options eliminated the overhang in shareholder dilution that would've occurred when these options were exercised in the open market.

Sue: Strong cash flow generation.

Sue: And we will continue to provide us with financial flexibility, giving us the opportunity to advantageously buyer stock when it's trading below value, which we and as bill highlighted earlier from firms like Boy. Our research also believe it is today.

Stuart B. Rosenstein: 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 engines. 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 a strong competitive advantage in markets outside the top 50. In addition, we are highly focused on our balance sheet.

Sue: As always our number one priority is to invest in our local business to organic.

Sue: Internal investments that support our revenue and profit growth, particularly our digital growth engine.

Sue: We plan to continue to invest in our digital product technology.

Sue: Content and support teams specifically in our town square interactive and town square ignite businesses in order to maintain a strong competitive advantage in markets outside the top 50 cities.

Sue: In addition, we are highly focused on our balance sheet, we feel extremely confident that we are well position to refinance our February 2026.

Stuart B. Rosenstein: We feel extremely confident that we are well positioned to refinance our February 2026 notes before they come due. Our board has approved our next quarterly dividend, payable on August 1st to shareholders of record as of July 15th. The dividend of $0.1975 per share, which we just raised by 5% last quarter, equates to $0.79 per share on an annualized basis, which implies an annual payment of approximately $13 million on our current share count and a dividend yield of approximately 6% based on our current share price.

Sue: Before they come due.

Sue: Our board has approved our next quarterly dividend payable on August one to shareholders of record as of July 15th.

Sue: The dividend of <unk> 19 in three core <unk> per share, which we just raised by 5% last quarter equates to 79 per share on an annualized basis, which implies an annual payment of approximately $13 million on our current share count and a dividend yield of approximately 6% based on our current share price.

Stuart B. Rosenstein: We believe our strong cash flow characteristics will allow us to continue to invest in our business, support our dividend, and give us flexibility to opportunistically pursue debt and share repurchases as circumstances allow. Turning to our second quarter outlook, we expect second quarter net revenue to be between $117.5 million and $119 million. As Bill already detailed, incorporated into our revenue guide is a year-over-year decline of close to $3 million at Townsquare Interactive and over $1 million in our national digital business.

Sue: We believe our strong cash flow characteristics will allow us to continue to invest in our business support our dividend and give us flexibility to opportunistically pursue debt and share repurchases as circumstances allow.

Sue: Turning to our second quarter outlook, we expect second quarter net revenue to be between $117 5 million and $119 million.

Sue: As bill already detail baked into our revenue guide is the year over year decline of close to $3 million at town square interacted and over $1 million in our National digital business, we expect second quarter, adjusted EBITDA to be between $26 million and $27 million.

Sue: For the full year, we are reaffirming our expectation that revenue will be between $440 million and $460 million.

Sue: We are also reaffirming our expectations that our 2024, adjusted EBITDA will be between $100 million and $110 million.

Stuart B. Rosenstein: We expect second quarter adjusted EBIT dollars to be between $26 million and $27 million. For the full year, we are reaffirming our expectations that revenue will be between $440 million and $460 million. We are also reaffirming our expectations 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 Bill.

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

Bill Wilson: Thank you, Stu. Great job, as always.

Bill Wilson: Thank you Stu great job as always and thanks to everyone, who dialed in this morning to be updated on town squares results. We greatly appreciate it.

Bill Wilson: And thanks to everyone who dialed in this morning to be updated on Townsquare's results. We greatly appreciate it. Again, I would encourage everyone to download the updated investor presentation and to review the Boyer Research piece on Townsquare. It was quite favorable.

Bill Wilson: Again, I would encourage everyone to download the updated investor presentation and to review the boy a research piece on town square it was quite favorable and.

Bill Wilson: In closing, I want to state again that we are building momentum and anticipate strengthening our performance throughout the year as national advertising pressures moderate and Townsquare Interactive returns to growth. Our differentiated digital advertising platform has already returned to growth, and our mature cash cow broadcasting platform has and continues to generate a solid profit, contributing to our strong cash generation. Due to our cash position and strong cash generation, we retain financial flexibility moving forward, and we are confident in our ability to build shareholder value for our investors through long-term net revenue, profit, and cash flow growth, as well as net leverage reduction, future dividend payments, and potential future share repurchases. With that, Operator, at this time, please open the line for any and all questions.

Bill Wilson: In closing I want to state again that we are building momentum and anticipate strengthening our performance throughout the year.

Bill Wilson: As national advertising pressures moderate and town square interactive returns to growth our differentiated digital advertising platform has already returned to growth in our mature cash cow broadcasting platform has and continues to generate a solid profit contributing to our strong cash generation.

Bill Wilson: Due to our cash position and strong cash generation, we retain financial flexibility moving forward and we are confident in our ability to build shareholder value for our investors through long term net revenue profit and cash flow growth as well as net leverage reduction future dividend payments and potential future share repurchases.

Speaker Change: With that operator at this time, please open the line for any and all questions.

Operator: 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 a three-tone prompt 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 two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please for your first question. The first question comes from Michael Kupinski with Noble Capital Markets. Your line is now open.

Speaker Change: 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 Youll hear three Tom pump acknowledging your request and your questions will be pulled in the order. They are received should you wish to decline from the polling process. Please press star followed by the <unk>.

Michael A. Kupinski: Thank you for taking the questions, and good morning everyone. A couple of questions here. Obviously, it's great to see that you turned the corner towards subscriber growth in Townsquare Interactive. Just a couple of questions here.

Michael A. Kupinski: Are the increases in the subscribers being delivered by your Phoenix office, or was that across the board? And then could you just provide a little color on the types of subscribers you're gaining. Are they new?

Speaker Change: If we are using a speaker phone please lift the handset before pressing any keys.

Speaker Change: Please for your first question.

Speaker Change: Your first question comes from Michael Kaplinsky with Noble capital markets. Your line is now.

Michael A. Kupinski: Are you gaining from competitors and that sort of thing? And then I would imagine that it would take some time before that shows up in quarterly revenue growth. Do you think that the business is on track to swing positive in Q4 or could it happen in Q3?

Michael A. Kupinski: Thank you for taking the questions and good morning, everyone.

Michael A. Kupinski: Couple of questions here, obviously, it's great to see that you've turned the corner towards subscriber.

Michael A. Kupinski: Subscriber growth in town square interactive.

Michael A. Kupinski: Just a couple of questions here are the increases in the subscribers being delivered by your Phoenix office or was that across the board and then if you can just provide a little color on the types of subscribers are gaining are they new or are you gaining from competitors and that sort of thing and then.

Michael A. Kupinski: I would imagine that it would take some time before that shows up in quarterly revenue growth do you think that the business is on track to swing positive in Q4 or could it happen in Q3.

Bill Wilson: Thank you, Michael. I appreciate the question. It's Bill.

Bill Wilson: Thank you Michael appreciate the question it's bill.

Michael A. Kupinski: As you noted we returned to growth, we have tremendous confidence and optimism in our telco interactive business, which we've been.

Bill Wilson: As you noted, we returned to growth. We have tremendous confidence and optimism in our TownSquare Interactive business, which we've been sharing all along the way. I couldn't be more pleased that we returned some month-over-month subscriber growth in March, a little bit ahead of my expectations that I laid out on the last call, and that continued in April. And that resulted in month-over-month revenue growth in March and then again in April. So I just couldn't be more pleased.

Michael A. Kupinski: Bearing all along the way it couldnt be more pleased that we returned to month over month subscriber growth in March a little bit ahead of my expectation that I laid out on the <unk>.

Michael A. Kupinski: Last call and that continued in April and that resulted also in month over month revenue growth in March and then again in April.

Michael A. Kupinski: Just couldn't be more pleased obviously, we have been transparent that we took a big hit kind of fell down got back up and not only got back up but got up stronger and put in the work to become I think a better organization as a result of it as it relates to your specific question is not just Phoenix.

Bill Wilson: Obviously, we've been transparent that we took a big hit, kind of fell down, got back up, and not only got back up, but got up stronger and put in the work to become, I think, a better organization as a result of it. As it relates to your specific question, it's not just Phoenix. A couple of things are happening.

Michael A. Kupinski: Things are happening our sales velocity is increasing across Charlotte and Phoenix, which is wonderful and our churn continues to dropdown, it's still above historical levels. So I expect it to continue to drop down I think part of that as interest rates have stayed elevated probably a little bit longer than most anticipated six or nine months ago and inflation is obviously stubborn.

Bill Wilson: Our sales velocity is increasing across Charlotte and Phoenix, which is wonderful, and our churn continues to drop. It's still above historical levels, so I expect it to continue to drop. I think part of that is interest rates have stayed elevated probably a little bit longer than most anticipated six or nine months ago, and inflation is obviously stubborn, and that's why interest rates are high, and that impacts these types of businesses.

Michael A. Kupinski: And that's why interest rates are high and that impacts of these types of businesses. That's why I'm, even more pleased with the performance of the town square interactive team in growing revenue and subscribers. This early.

Bill Wilson: That's why I'm even more pleased with the performance of the TownSquare Interactive team in growing revenue and subscribers this early. We are definitely getting business from competitors, so it is not like it's a new business that just opened, and they need a web presence. One of the biggest changes, there have been a couple of major, significant changes at TownSquare Interactive in the last 18 months. We've outlined in great detail the service model change, so I don't think I need to detail that, but that has definitely improved our customer service.

Michael A. Kupinski: We are definitely getting business from competitors. So it is not like it's a new business, we just opened and they need a web presence one of the biggest changes.

Michael A. Kupinski: There's been a couple of major significant changes that sounds for interactive in the last 18 months.

Michael A. Kupinski: We've outlined in great detail the service model change so I don't think I need to detail that but that is definitely improved our customer service I think I talked on the last couple of calls about improved.

Bill Wilson: I think I talked on the last couple of calls about improved answer rates, turnaround times for requests, all of those things. I couldn't be more pleased. We still have more work to do. We're always improving and evolving, so I think we'll continue to improve on that front.

Michael A. Kupinski: Answer rates turnaround times request all of those things couldn't be more pleased we still have more work to do we're always attacking ourselves and evolving. So I think we'll continue to improve on that Ryan I think what we haven't talked a lot about is we now have incorporated into town square interactive pivots too strong a word but we.

Bill Wilson: I think what we haven't talked a lot about is we now have incorporated into TownSquare Interactive, and I would say pivot is too strong a word, but we've added on a business management platform. We used to really appeal to businesses that needed a website and SEO, and we still have that, but what we're now doing is appealing to businesses that maybe have a great website or are doing great with SEO, but they need a strong customer relationship management system, which is a CRM, and they may need invoicing and payment platforms integrated into QuickBooks so they can operate their business more effectively.

Michael A. Kupinski: Added on a business management platform. So we used to really appeal to businesses that needed a website and SCO and we still have that but what we're now doing is appealing to businesses that maybe have a great website are doing great with SCO, but they need a strong customer relationship management, which is CRM and they may.

Michael A. Kupinski: Need invoicing and payment platforms integrated into quickbooks. So they can operate their business more effectively so telcel interactive has really become a SaaS business software as a service and that's very powerful and I think a difference maker as we go forward over the next few years. So back to your question Phoenix and Charlotte contributing to this.

Bill Wilson: TownSquare Interactive has really become a SaaS business, software as a service, and that's very powerful and, I think, a difference maker as we go forward over the next few years. Back to your question, Phoenix and Charlotte contributing to this growth, not only sales, but reducing churn, and then really taking shareship from competitors because of this new business management platform, so I'll pause there for any follow-ups on TownSquare Interactive, Michael.

Michael A. Kupinski: Growth not only sales, but reducing churn and then really taking a share shift from competitors because of this new business management platform. So I'll pause there for any follow ups on how its grown racked up Michael.

Michael A. Kupinski: And then the other part of that question was, when do you think that the business will turn to quarterly revenue growth? Would that be in the fourth quarter, or do you think it could happen in the third quarter, given the trajectory you're seeing?

Speaker Change: And then the other part of that question was do you. When do you think that the business will turn to quarterly revenue growth would that be in the fourth quarter or do you think it could happen in the third quarter, given the trajectory you're seeing yes.

Bill Wilson: Yeah, I couldn't be more pleased with the trajectory, you know, the other things, so I actually expect us potentially to get to quarter-over-quarter revenue growth in Q2. It may be slight, but I think we have turned the corner.

Speaker Change: I couldn't be more pleased with the trajectory.

Speaker Change: So yes so.

Speaker Change: I actually expect us potentially to get to a quarter over quarter revenue growth in Q2.

Speaker Change: It may be slight but I think we have turned the corner, we're getting month over month revenue growth now so I expect that we will.

Bill Wilson: We're getting month-over-month revenue growth now, so I expect that we will return to quarter-over-quarter revenue growth in Q2. But when we're looking at an annual perspective, I think that won't happen until Q1 of 25, because obviously, we lost 7,350 subscribers before returning to growth in March. And if somebody doesn't kind of take a look underneath the covers, they're just going to see our year-over-year decline because it takes a little while to dig out of that hole that we created for ourselves. So in terms of year-over-year revenue growth, I expect that in Q1 of 25%. But going to your specific question, I expect quarter-over-quarter revenue growth in Q2.

Speaker Change: Returns are quarter over quarter revenue growth in Q2.

Speaker Change: When we're looking at an annual perspective, I think that doesn't happen until Q1 of 'twenty five because obviously, we've lost 7350 subscribers before returning to growth in March and if somebody doesn't kind of take a look underneath the covers there just going to see our year over year decline because it takes a little while to dig out of that hole that we.

Speaker Change: Created for ourselves so in terms of year over year revenue growth I expect that in Q1 of 25, but going to your specific question I expect quarter over quarter revenue growth in Q2.

Michael A. Kupinski: Yeah, sequential quarter over quarter. In terms of the core of broadcasting, a little bit better than I was thinking in the quarter. Can you talk a little bit about the tone of that business and what you're hearing from advertisers? And I know some broadcasters have indicated that national advertising is stabilized and, in some cases, actually improved year over year. I was wondering if you could give us your thoughts on national as well.

Speaker Change: Sequential quarter over quarter.

Speaker Change: In terms of the broadcasting.

Speaker Change: Broadcasting little bit better than I was thinking in the quarter can you talk a little bit about the tone of that business and what youre hearing from advertisers and I know some broadcasters have indicated that national advertising is stabilized and in some cases actually improved year over year. I was wondering if you could give us your thoughts on national as well.

Speaker Change: Of course, thank you Michael so yeah on the broadcast business to your point.

Bill Wilson: I'm quite pleased with where we are. I'm really proud of the team.

Speaker Change: Pleased with where we are I'm really proud of the team as I think people know my perspective on broadcast it's a traditional cash cow business.

Bill Wilson: You know, as I think people know, my perspective on broadcasting is that it's a traditional cash cow business. So I think it's plateaued in terms of where it is, and it'll be a slow decliner, maybe flat over time. But we treat it like a traditional cash cow business.

Speaker Change: So I think it's plateaued in terms of where it is and it will be.

Speaker Change: A slow decline or maybe flat over time, but we treat it as a traditional cash cow business. So one of the things I'm most proud of the town square team as market share shifts so even in a market that may not be growing we continuously year after year share shifts broadcast dollars to town square and I think thats really.

Bill Wilson: So one of the things I'm most proud of the Townsquare team is the market share shift. So even in a market that may not be growing, we continually, year after year, shift broadcast dollars to Townsquare. And I think that's really a testament to our local content on air and online, and the teams that are doing that each and every day, and particularly with other broadcasters who don't have the wherewithal for the digital profit of over 50% and the digital revenue of over 50% to be able to continue to invest in local content. That's one of our core competitive advantages, and the fact that we're outside of the top 50 markets and really the only company in local media to specialize in markets outside the top 50.

Speaker Change: A testament to our local content on air and online and the teams that are doing that each and every day and particularly with other broadcasters, who don't have the wherewithal of the digital profit of over 50% in the digital revenue over 50 graduate to be able to continue to invest in local content that is one of our core competitive advantage and the fact that were outside of the top 50 markets and really.

Speaker Change: The only company and local media to specialize in markets outside the top 50, so broadcast declining just 1% in Q1 is obviously as the kind of sequential improvement from Q4 National as I believe we noted on the call continue to be a drag in Q1, it was down 9%, so definitely better than I.

Bill Wilson: So broadcast declining just 1% in Q1 is obviously a sequential improvement from Q4. National, as I believe we noted on the call, continued to be a drag in Q1. It was down 9%, so definitely better than, I think it was roughly a 20% decline last year. So we've halved that to roughly 9%.

Speaker Change: I think it was roughly 20% decline last year. So we have that to roughly 9% I think the tone overall has improved as you noted because obviously local way outperformed national and as we look to Q2 I think broadcast is roughly in the same space call. It flat to down one and I think national starts to improve our pacing for national definitely is.

Bill Wilson: I think the tone overall has improved, though, as you noted, because obviously, local way out performed national. And as we look to Q2, I think broadcast is roughly in the same space, call it flat to down one. And I think national will start to improve. Our pacing for national definitely is seeing improvement in Q2 and onward. Part of that is how far down it was last year and got worse throughout the year in Q2 and Q3.

Speaker Change: Seeing improvement in Q2 and onwards part of that is how far down it was last year and got worse as the year Q2 and Q3 so.

Bill Wilson: So going back to your question, the sentiment out there, we think is improving. I think that'll actually pick up, and we'll have a tailwind in broadcast as interest rates and inflation come down. I think that's true across all of our businesses. But in the meantime, we expect Q2 and broadcast to be better than Q1. And Q1 was obviously better than Q4. So, quite optimistic about the broadcast side.

Speaker Change: Going back to your question that the sentiment out there. We think is improving I think that will actually pick up and we will have a tailwind in broadcast as interest rates and inflation comes down I think that's true across all of our businesses, but in the meantime, we expect Q2 and broadcast would be better than Q1, and Q1 was obviously better than Q4, so quite optimistic about the <unk>.

Speaker Change: <unk> side.

Michael A. Kupinski: Final question, capital allocation from here. I know you've been buying back stock, paying dividends, and so forth, and investing in your businesses. I was just wondering if you could just talk a little bit about that, and obviously, there are some broadcasters out there struggling, and I was wondering if M&A becomes a prospect.

Speaker Change: Our final question capital allocation from here I know, you've been buying back stock paying dividends and so forth.

Speaker Change: And investing in your businesses I was just wondering if you could just talk a little bit about that and obviously there are some broadcasters out there struggling and I was wondering if the M&A becomes prospect.

Bill Wilson: Yeah, I think M&A becomes a prospect once we do our refinancing, as Stuart described in great detail. We're very pleased with the Cherry Creek acquisition that's coming up on two years ago. Our profit in that business has grown quite nicely. The whole Trojan horse of using radio to build a digital business has, again, proven itself quite nicely with Cherry Creek, with significant digital revenue and profit growth.

Speaker Change: Yeah, I think M&A becomes a prospect once we do our refinancing as Stuart described in great detail. We're very pleased with the Cherry Creek acquisition, that's coming up on two years ago, our profit in that business has grown quite nicely.

Speaker Change: Trojan horse of using radio to build a digital business has.

Speaker Change: <unk> proven itself quite nicely with Terry agreed with significant digital revenue and profit growth. So I think Michael the opportunity for M&A as you noted the others in the industry.

Bill Wilson: So I think, Michael, the opportunity for M&A, as you noted, the others in the industry are in a different position just because I think they have exposure to more national business, obviously, in the top 50 markets and didn't have the blessing that we started this company with the mindset of building a digital company from day one. So we're really focused on, obviously, continuing to grow our cash flow from operations. I think that's a clear differentiator, and that's why we encourage everybody to read the Boyer Research piece.

Speaker Change: In a different position just because I think they have exposure to more national business, obviously in the top 50 markets and didn't have the.

Speaker Change: The blessing that we started this company with the mindset of building a digital company from day one.

Speaker Change: So we're really focused on obviously.

Speaker Change: To highlight our cash flow.

Speaker Change: From operations I think that is a clear differentiator. That's why we encourage everybody to read the boy a research piece it really speaks to a quite nicely detailed the business a great understanding of the business. It puts a real emphasis on the cash flow and why they believe the intrinsic value of the company is $25 and change versus the current $12 $5 and change so obviously.

Bill Wilson: It really speaks to, quite nicely, details the business, has a great understanding of the business, and puts a real emphasis on the cash flow and why they believe the intrinsic value of the company is $25 and change versus the current $12.5 and change. So, obviously, the board just approved the increase in the dividend on our last call. I could see us potentially doing that on a regular basis.

Speaker Change: The board just approved the increase in the dividend on our last call.

Speaker Change: I could see us potentially doing that on a more on a regular basis, but right. Now we continue to be focused on Delevering I think we've done a great job over the last three years to four years to Delever, we'll continue that emphasis but at the same time with the.

Bill Wilson: But right now, we continue to be focused on de-levering. I think we've done a great job over the last three to four years of de-levering. We'll continue that emphasis. Our stock price is undervalued greatly, and that's why we're buying back stock in the open marketplace, as well as opportunities when they come up with shareholders like MSG. So I think from a capital allocation standpoint, we'll continue to invest in our local businesses and our local teams.

Speaker Change: Our stock price is undervalued greatly and that's why we're buying back stock in the open marketplace as well as opportunities when they come up with shareholders like MSG. So I think from a capital allocation standpoint, we will continue to invest in our local businesses in our local teams.

Bill Wilson: I think, as you probably see across the board, others may be trimming some of their headcount. It gives us a great opportunity to add to our headcount. We'll obviously continue to support the dividend. We'll continue to de-lever, and if there are opportunities in the marketplace to buy more stock, we'll do so. So it's multifaceted, but one of the key focuses is to de-lever and refinance, as Stu outlined, before we do future M&A in the radio. Thank you.

Speaker Change: As you probably see across the board others may be trimming some of their head count and it gives us a great opportunity to add to our head count. We'll obviously continue to support the dividend, we will continue to delever and if theres.

Speaker Change: <unk> in the marketplace to buy more stock we will do so so it's multifaceted, but one of the key focuses.

Speaker Change: Delever refinance as Sue outlined before we do future M&A in the radio space.

Michael A. Kupinski: Right. Thank you. That's all I have for now.

Speaker Change: Great. Thank you that's all I have for now thank.

Speaker Change: Thank you Michael.

Operator: Your next question comes from Jim Goss with Barrington Research. Your line is now open.

Speaker Change: Your next question comes from Jim Goss with Barrington Research. Your line is now open.

James Charles Goss: All right, thank you. I'd like to start by going back to Townsquare Interactive. In past calls, you've talked about the process of creating a sales staff that takes a little bit of time to get to sort of the maturity stage. I was just wondering if you might comment on the stage of development because it's obviously working in a time when the overall potential has been a little more depressed than it has been, but it seems like it's on the upturn right now. Are things getting to the stage you think you'd need to be having them run full bore at this stage?

James Charles Goss: Alright, thank you.

Speaker Change: <unk>.

James Charles Goss: I'd like to start with going.

James Charles Goss: Coming back to town square interactive.

James Charles Goss: In past calls you've talked about the.

James Charles Goss: Process of creating a sales staff that takes a little bit of time to get to sort of the maturity stage and I was just wondering if you might.

James Charles Goss: Comment on the.

James Charles Goss: The stage development, because it's obviously working on that.

James Charles Goss: In the period, where the overall.

James Charles Goss: Potential has been a little more depressed than its been but it seems like it's on the upturn right now.

James Charles Goss: Our things.

James Charles Goss: Getting to the stage, you think you'd need to be having them run full bore at this stage.

Bill Wilson: Yes. Hey, Jim. Great to hear from you. Thank you for the questions, as always. Yeah, I think full bore is a great way to put it where we've got Phoenix now humming nicely. We continue to add talent out there. We started with sales talent. They are the original ones we hired back in Q1 of 23 are at that maturity stage. We continue to hire aggressively. You can go to, you know, job listing sites, and you'll see listings for Council Interactive and Phoenix as well as Charlotte.

Speaker Change: Yes, Hey, Jim Great to hear from you. Thank you for the questions as always yes, I think full bore as a great way to put it where we've got Phoenix now humming nicely. We continue to add talent out there we started with sales talent.

Speaker Change: The original ones, we hired back in Q1 of 'twenty three alright that maturity stage. We continue to hire aggressively you can go to job listing sites and Youll see listings for council interactive in Phoenix as well as Charlotte.

Bill Wilson: And that's one of the reasons we have tremendous confidence and optimism. And I just think the team there of Tim and Kate and Josh and Justin and Jay Jones, they're just doing a great job. And I think we're really hitting our stride. As I shared, you know, in the prepared remarks, we definitely took a hit. I think we actually got to be a better company as a result of attacking ourselves and really questioning why we lost these subscribers and how we can come out of this as a stronger company.

Speaker Change: And that's one of the reasons, we have the tremendous confidence and optimism and I just think the team there of Tim and Katie Johnson, Justin and J Jones, they're just doing a great job and I think we're really hitting our stride as I shared in the prepared remarks, we definitely took a hit I think we actually got to be a better company as a result of attacking ourselves are really questioning why.

Michael A. Kupinski: We lost these these subscribers how do we come out of this as a stronger company part of what part of that is that business management platform and SaaS business that I, just described and in answering some Michael but.

Bill Wilson: Part of that is the business management platform and SaaS business that I just described in answering to Michael. But, you know, I think the sales staff is really humming now. I think these additional platforms of invoicing and payments and CRMs are a difference makers, particularly at our price point. We're bringing very sophisticated national scale to smaller markets and smaller businesses. And that's one of the reasons we're so confident and we're so pleased to be back in growth mode. And I never expect us to go backwards again.

Bill Wilson: I think the sales staff is really humming now.

Bill Wilson: I think these additional platforms of invoicing and payments and CRM is a difference maker, particularly at our price point, we're bringing very sophisticated national scale, two smaller markets and smaller businesses and that's one of the reasons. We're so confident and we're so pleased to be back in growth mode, and I never expect us to go backwards again.

James Charles Goss: Can you talk about some of those SaaS model-type services you're offering, enlighten us a little bit more on just what they are, and also talk about the decisions you make in terms of trying to target some new markets within the area now that you do have that West Coast presence?

Bill Wilson: Can you talk about some of those SaaS model.

James Charles Goss: Yes.

Bill Wilson: Services Youre offering.

James Charles Goss: Underlying this a little bit more on just what they are and also talk about the decisions you make in terms of trying to target some new markets within the area now that you have in that west coast presence.

Bill Wilson: No, it's a great point because, actually, before, we really focused on businesses that needed a website, needed help with SEO, and while we continue to do that, we now have a whole new target market of customers who have a great website, have great SEO, but they need a, let's start with the CRM, so Customer Relationship Management. They have customers coming to their websites, and we can demonstrate to them how working with Townsquare Interactive can convert more of their website traffic into customers, and we've created a dashboard in real time where they can go in and see the traffic coming in, and then how much of that traffic is actually converting to a lead, so somebody providing their name, their phone number, or email address, and then actually providing the software to contact that customer on their client's behalf.

James Charles Goss: Great point, because we are actually before we would really focus on businesses that needed a website needed help and SCO and while we continue to do that we now have a whole another target market of customers, who have a great website have great SCL, but they need it.

Bill Wilson: Let's start with the CRM customer relationship management, they have customers either coming to their website and we can demonstrate to them how working with town square active can convert more of their web site traffic to customers and we've created a dashboard and real time, where they can go in and see the traffic coming in and then how much of that trap.

Bill Wilson: <unk> is actually converting to a lead so somebody providing their name their phone number or email address and then actually providing the software to contact that customer on the client's behalf.

Bill Wilson: Now offer email marketing and <unk> marketing directly into that CRM.

Bill Wilson: For these customers. So the SaaS pivot is early very very early we're months into it but we're incredibly encouraged and I think that's one of the reason we're seeing increased sales velocity and we also believe and time will tell but we also believe this SaaS model in this business management platform will help us reduce churn we believe it's stickier because.

Bill Wilson: We're months into it, but we're incredibly encouraged, and I think that's one of the reasons we're seeing increased sales velocity, and we also believe, and time will tell, but we also believe this SaaS model and this business management platform will help us reduce churn. We believe it's stickier because of the CRM and the invoicing and the payments and integration into QuickBooks and appointment scheduling and all of those things, so it's a meaningful pivot for the company, so I think the difference in the service model is meaningful, and I think this new SaaS pivot to the business management platform, particularly over the next three to five years, is going to be extremely meaningful, and going back to your question, it allows us to broaden the target audience of customers for TownSquare Interactive moving forward.

James Charles Goss: Can you talk about the profitability measures that those new services provide relative to the core service?

James Charles Goss: Of these CRM in the invoicing in the payments and integration into Quickbooks and appointment scheduling and all of those things so.

James Charles Goss: It's a meaningful pivot for the company. So I think the difference in the service model isn't as meaningful and I think this new SaaS pivot to the business management platform, particularly over the next three to five years is going to be extremely meaningful and going back to your question that allows us to broaden the target audience of customers for town square interactive moving forward.

Speaker Change: Can you.

Speaker Change: Talk about the.

James Charles Goss: Yes.

James Charles Goss: Profitability measures.

James Charles Goss: Those new services provide relative to the core service.

Bill Wilson: Yeah, so the great news is the profitability for these services is roughly in line with our traditional services. So, you know, we've been operating Townsquare Interactive at mid to high 20% margins for the last, I call it, you know, five to eight years. And that's very similar to our digital advertising platform, Ignite, where we're operating that at, you know, 20, call it, mid 20s to high 20s on an annual basis.

James Charles Goss: So the great news is the profitability for these services is roughly in line with our traditional services. So we've been operating task where interactive in the mid to high 20% margins for the last I call. It five to eight years and Thats very similar to our digital advertising platform ignite where we're operating that at.

Bill Wilson: Call It mid twenties high twenties on an annual basis so.

Bill Wilson: That's the way we've been fortunate when you're one of the things where I think we've done quite well is that as we've built and transform from a traditional legacy radio company in 2010 to a digital first company today.

Bill Wilson: So, that's the way we've been fortunate. You know, one of the things where I think we've done quite well is that as we've built and transformed from a traditional legacy radio company in 2010 to a digital first company today, a lot of other companies have a much lower digital margin profile from a profit perspective because they don't have the teams in-house, right? That's been a real core advantage. We talked on another earnings call just about how the personnel we have is a difference maker for us.

Bill Wilson: A lot of other companies have much less digital margin profile from a profit perspective, because they don't have the teams in house right that that's been a real core advantage. We talked on other earnings call. Just about the personnel. We have is a difference maker for us and the fact that we can build these solutions at scale in house versus going to third parties.

Bill Wilson: And the fact that we can build these solutions at scale in-house versus going to third parties provides many, many, many benefits. And one of those is the profit margin. So, the business management platform in the SaaS part of TSI has the same profit margin as we've traditionally held.

Bill Wilson: <unk> many many many benefits and one of those is the profit margin. So the business management platform in the SaaS part of CSI is same profit margin as we've traditionally held.

James Charles Goss: and maybe one other around the radio side. You've talked about that business being a cash cow, so to speak, and I'm wondering if you have any concern that it might erode to be maybe even a little less than that. Especially as a lot of the new cars where a lot of the listening takes place have higher levels of technology that make it easier to get a lot of other competing content onto the cars and could erode your position. And also, maybe talk in terms of appeal to demographic groups and whether you think some of the younger listeners are going to be fewer than the traditional older listeners.

Bill Wilson: Okay, and maybe one other over on the radio side, you've talked about that.

James Charles Goss: This being the cash pile.

James Charles Goss: So to speak and I am wondering if you have any concern that it.

James Charles Goss: Might erode.

James Charles Goss: Maybe even a little less than that.

James Charles Goss: Especially as.

James Charles Goss: A lot of the new cars, where a lot of the listening takes place.

James Charles Goss: Levels of technology that make it easier to get a lot of other competing.

James Charles Goss: Content onto the cars and.

James Charles Goss: Could or could erode your position and also maybe talk in terms of.

James Charles Goss: Appeal to demo demographic groups and whether you think some of the younger listeners are going to be fewer than the traditional older listeners.

Bill Wilson: No, great question. Very astute. Is the possibility that the road will be greater than it has been over the last five years over the next five years? That's definitely a possibility.

James Charles Goss: No great question, a very astute as the possibility that erode greater than it has over the last five years over the next five years, that's definitely a possibility I think it really puts a great spotlight on the fact that town square is literally the only local media company focused on markets outside the top 50, so as you know Jim.

Bill Wilson: I think it really puts a great spotlight on the fact that Townsquare is literally the only local media company focused on markets outside the top 50. So, as you know, Jim, the radio broadcast traditionally: the great news is that more people listen to AM FM today than 10 years ago. That's an astounding statistic, and it actually ends up being true.

Bill Wilson: The radio broadcast traditionally the great news is more people listened to am FM today than 10 years ago, that's an astounding statistic and it actually ends up being towards the number one reach medium today, where TV used to be the number one reach medium just five years ago.

Bill Wilson: It's the number one reach medium today, where television used to be the number one reach medium just five years ago. I think the challenge for the broadcast industry overall from a radio perspective is time spent listening. And thankfully, at Townsquare, because we're filling this, I call it, news deserts, not only online, but on air, where we're providing local information from trusted journalists.

Bill Wilson: I think the challenge for the broadcast industry overall from a radio perspective as time spent listening and thankfully a town square because we're filling this I called news deserts, not only online, but on air where we're providing local information from trusted journalists were entertaining people and newspapers for all intensive purposes.

Bill Wilson: <unk> exited our size markets people, we have our time spent listening is the same now as five years ago, which is very different than the industry at large could that change that definitely could change I don't expect it to change because I think newspapers, even television stations in our size markets have cutback local coverage and we can.

Bill Wilson: We're entertaining people and newspapers that, for all intents and purposes, have, you know, exited our size markets. People, we have our time spent listening the same now as five years ago, which is very different than the industry at large. Could that change?

Bill Wilson: That definitely could change. I don't expect it to change because I think newspapers, even television stations in our size markets have cut back local coverage, and we continue to hire local, local, local, local content. So I think that's one of the reasons we're taking share in broadcast. We've talked about it every quarter from a Miller Kaplan perspective.

Bill Wilson: To hire local local local local content. So I think that's one of the reasons, we're taking share in broadcast we've talked about it every quarter from our Miller Kaplan perspective, we are able to measure that we're taking broadcast share from our competitors in the markets that we compete so that is tremendously powerful.

Bill Wilson: We are able to measure that we're taking broadcast share from our competitors in the markets that we compete in, so that is tremendously powerful. The demographic, yes. I mean, obviously, a lot of time spent listening in cars, but the flip side of that is almost over 15% of people are now listening to our broadcast through a stream, which is tremendous. And I think that increases to 20, 25, 30% over time.

Bill Wilson: The Democrat, Yes, I mean, obviously a lot of time spent listening in cars, but the flip side of that is almost over 15% of people are now listening to our broadcast stream, which is tremendous and I think that increases to $2025, 30% overtime that actually affords us a lot more opportunity from a digital perspective, because you're able to.

Bill Wilson: That actually affords us a lot more opportunity from a digital perspective because you're able to target and do other things that you can't just do over a traditional AM and FM broadcast. We have so many people now listening through our app, but also in-home devices, obviously Google Home, Amazon Alexa, and connected TVs. These, to me, are opportunities for distribution back into the home, where there are obviously not as many radio players as there were a decade ago or even two decades ago. But now, with all of these technological devices, radio is redistributed back into the home. So I think the opportunity actually exists, but there is a possibility of erosion.

Bill Wilson: Target and do other things that you can't just do over traditional <unk> broadcast.

Bill Wilson: We have so many people now listening through our App, but also in home devices, obviously, Google home Amazon Alexa connected Tvs These to me or opportunities for distribution and back into the home where there are obviously not as many radio players as there was a decade ago or even two decades, but now with all of these technologies.

Bill Wilson: Radio is redistribute it back into the home so I think the opportunity actually.

Bill Wilson: The flip side is with that distribution, and particularly for us in our size markets, there's an opportunity for growth too. And I think the fact that our audience has been stable and our time spent listening has been stable, even with all these spaces of TikTok, Netflix, whatever your choice of consumption is, speaks to the power of local radio with a commitment to entertaining and informing local communities. And let's just take your question one step further.

Bill Wilson: There is a possibility erosion the flip side is with that distribution and particularly for us in our size markets. There is an opportunity for growth too and I think the fact that our audience has been stable and our time spent listening has been stable even with all these spaces of tick tock Netflix whatever your choice of consumption is.

Bill Wilson: It speaks to the power of local radio with a commitment to entertaining and informing local communities and let's just take your question. One step further if it does erode faster than we anticipate or others into say, we've got a digital platform not only in Tesco interactive that we just spent a lot of time talking about but as you know Jim or <unk>.

Bill Wilson: If it does erode faster than we anticipate or others anticipate, we've got a digital platform, not only in Townsville Interactive that we just spent a lot of time talking about, but as you know, Jim, our Ignite business has been the fastest growing business in the company for the last five years. Our programmatic business was up in Q1, high single digits. It's currently pacing up low double digits in Q2. Part of that is masked because of the national decline that we talked about. And I think we've got a team in Jared, Jackie, and Rabab that they'll solve for that.

Bill Wilson: <unk> business has been the fastest growing business in the company for the last five years, our programmatic business was up in Q1 high single digits is currently pacing up low double digits. In Q2 part of that is masked because of the national decline that we talked about and I think we've got a team in Jared and Jackie and rhubarb that they'll sell for that just like we took a hit in <unk>.

Bill Wilson: Just like we took a hit in Townsville Interactive, I'm very confident the team's going to figure out a way to stabilize and then return to growth on our national advertising business on the digital side. But in the meantime, we've got strength in our local, as we talked about on the call; our local audience to our local websites and mobile app was up 16% year over year in March. That's really, really a significant increase in audience.

Bill Wilson: Score interactive I'm very confident that team's going to figure out a way to stabilize and then returned to growth in our national advertising business on the digital side, but in the meantime, we've got strengthen our local we talked about on the call our local audience to our local websites and mobile apps is up 16% year over year in March that's really really a significant increase.

Bill Wilson: Again, I think that speaks to the news deserts and us filling a void online as well as on air for our communities. That also affords us the ability for first-party data to grow. We've detailed at great lengths the competitive advantage of being a large publisher of original local content. So if radio were to decline faster than we anticipate, I don't want to be flippant and say it doesn't matter, but we're prepared for anything because of our growth in digital.

Bill Wilson: Audience again, I think that speaks to the news desert and us filling a void on online as well as all on air for our communities that also affords us the ability for the first party data to grow we've detailed in great lengths the competitive advantage of being a large add scale publisher of original local content. So if radio were to decline.

Bill Wilson: <unk> faster than we anticipate.

Bill Wilson: I don't want to be flip it and say it doesn't matter, but we're prepared for anything because of our growth of our digital the fact that we've got 50 plus percent of our revenue and 50% of our profit in digital and we've returned to growth in town square interactive at ignite has been the fastest growing part of the company for the last five years programmatic, 60% of ignite and it's growing in Q1.

Bill Wilson: The fact that we've got 50 plus percent of our revenue and 50 percent of our profit in digital, and we've returned to growth in Townsville Interactive, and Ignite's been the fastest growing part of the company for the last five years. Programmatic 60% of Ignite, and it's growing in Q1 high single digits and in Q2 low double digits. We feel very well situated moving forward regardless of what happens in terms of consumption of broadcast radio. A very complete answer. Thank you very much. I appreciate the questions. It's always good to hear from you.

Bill Wilson: High single digits and in Q2 low double digits.

Bill Wilson: We feel very well situated moving forward, regardless of what happens in terms of consumption of broadcast radio.

Speaker Change: Thank you Greg.

Bill Wilson: Very complete answer thank you very much.

Bill Wilson: Appreciate the questions as always good to hear from you.

Bill Wilson: Thanks.

Bill Wilson: Yeah.

Operator: There are no further questions at this time. I will now turn the call over to Bill Wilson for closing remarks.

Bill Wilson: There are no further questions at this time I will now turn the call over to Bill Wilson for closing remarks. Thank.

Bill Wilson: Thank you, operator. I want to thank everybody who dialed in this morning to get the update on Townsquare. Obviously, you can hear our confidence and enthusiasm moving forward, particularly as we go through the back half of the year in 2025. I think all of the things that we've been working on are becoming more in line. I do want to take this opportunity to thank the Townsquare team who put in the effort with great passion to serve our local communities, the work we do with charities, the work we do for our local communities, not only informing them and educating them and being trustworthy, but what we do for our local communities on a daily basis. I couldn't be more proud of the team.

Bill Wilson: Thank you operator, I want to thank everybody, who dialed in this morning to get the update on town square, obviously, you can hear our confidence and enthusiasm moving forward, particularly as we go through the back half of the year in 2025, I think all of the things that we've been working on are becoming to be more in line I do want to take the opportunity to thank the town square team who puts in the effort.

Bill Wilson: Again, I would encourage you to read the Boyer Research Report. I just think it's incredibly well done. Obviously, they picked Townsquare as the opportunity pick last month.

Bill Wilson: With great passion to serve our local communities to work, we do with charities. The work we do for our local communities not only informing them in <unk>.

Bill Wilson: Indicating them and being trustworthy, but what we do for the local communities on a daily basis could be more proud of the team again I would encourage you to read the boy a research report I just think it's incredibly well done obviously, they picked town squares the opportunity pick last month.

Bill Wilson: If you're so inclined, I would encourage you to listen to the podcast as well, The World According to Boyer. And, probably most importantly, we look forward to reconnecting with you in a few months. Until then, if you have any questions about Townsquare, as always, you can reach me through my email at bill.townsquaremedia.com. I wish you all a great day. Thank you, operator.

Bill Wilson: <unk> declined I would encourage you to listen to the podcast as well the world. According to Bloyer and probably most importantly, we look forward to reconnecting with you in a few months and until then if you have any questions about town square as always you can reach me at through my E Mail Bill at town Square media Dot Com and I wish you all a great day. Thank you operator.

Operator: Ladies and gentlemen, this concludes our conference call for today. We thank you for participating and ask that you please disconnect your lines.

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

Operator: Yeah.