Townsquare Media expands digital ad reach with Steel City

Published 27/01/2025, 14:06
Townsquare Media expands digital ad reach with Steel City

PURCHASE, N.Y. - Townsquare Media, Inc. (NYSE: NYSE:TSQ), a prominent digital marketing solutions provider with a market capitalization of $143 million, has announced a strategic partnership with Steel City Media to bolster digital advertising services in Pittsburgh and Kansas City. This collaboration, revealed following Townsquare's preliminary 2024 financial results, aims to enhance Steel City Media's digital capabilities without market overlap. According to InvestingPro, the company maintains strong financial metrics with liquid assets exceeding short-term obligations.

Todd Lawley, President of Townsquare Ignite, expressed enthusiasm about incorporating Steel City Media into their partnership program, which is designed to help local media companies thrive digitally. The alliance is expected to drive growth and measurable success for Steel City's clients through Townsquare's proven programmatic advertising platform and data-driven insights. The company's commitment to shareholder value is evident through its significant 8.6% dividend yield, as reported by InvestingPro.

Launched in 2024, Townsquare's Media Partnerships division, part of Townsquare Ignite, offers white-label digital advertising solutions that have contributed significantly to Townsquare's revenue, with digital comprising over half of the company's total revenue and profit. The partnership with Steel City Media follows a similar agreement with SummitMedia, expanding Townsquare's reach without market conflicts.

Steel City Media's Vice President, Michael Frischling, acknowledged Townsquare's superior digital solutions and successful client outcomes, expressing excitement about the partnership's potential benefits for both markets.

Townsquare Media operates outside the top 50 U.S. markets, managing local radio stations, digital marketing services, and digital advertising divisions. Its portfolio includes over 400 local websites and apps, national music and entertainment brands, and 345 terrestrial radio stations in 74 markets.

Steel City Media, with a presence in Pittsburgh and Kansas City since 1984, connects audiences to radio content and provides full-service digital advertising agency services.

This partnership is based on a press release statement and aims to leverage Townsquare's expertise and resources to help Steel City Media grow its digital and broadcast presence.

In other recent news, Townsquare Media has unveiled a new $50 million stock repurchase plan, set to replace an expiring plan. The board-approved move follows the company's previous repurchases, which saw around $40.5 million worth of stock bought back over the past three years. The specifics of the repurchase transactions will be determined by the company's management, considering various factors such as market conditions and the company's financial position.

In addition to this, Townsquare Media reported a slight increase in net revenue to $115.3 million in its Q3 2024 earnings call, with digital revenue accounting for 52% of the total. This growth was driven by a 5% increase in the company's digital advertising segment and a 10% rise in programmatic advertising. Despite a decline in national broadcast advertising, Townsquare Interactive is anticipated to show year-over-year revenue growth in Q4.

The company also disclosed plans for debt refinancing in early 2025, anticipating favorable interest rate shifts. This development is in line with a strong cash flow that led to $24 million in share buybacks and $36 million in bond buybacks. A partnership with SummitMedia for a white-label digital programmatic advertising solution is also expected to ramp up in 2025. These recent developments highlight Townsquare Media's ongoing efforts to manage its capital and return value to its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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