Question · Q3 2025
Michael Kopinsky inquired about the broadcast segment's core advertising trends, specifically asking when stabilization might occur given secular headwinds and the typical off-election year dynamics. He also asked about the company's ability to maintain impressive margins despite revenue declines, the impact of government-related advertising in Q4, and the progression of the Phoenix office for the Townsquare Interactive segment's West Coast expansion.
Answer
CEO Bill Wilson explained that while the industry is down low double digits, Townsquare Media's broadcast segment outperformed with an 8% ex-political decline in Q3, showing slight improvement in Q4. He projected core radio to be negative mid-single digits in 2026 and negative low single digits in 2027-2028. Wilson affirmed the company's ability to maintain and improve broadcast profit margins (up to 28% in Q3 2025 from 25% in Q3 2024) through expense management and AI deployment. Regarding government advertising, he clarified that they experienced negative impacts like canceled orders rather than incremental buys. For Townsquare Interactive, Wilson expressed satisfaction with the Phoenix office's talent acquisition and highlighted the division's strong profit growth (21% in Q3, 19% YTD) and expanded profit margins (33% from customary 28%), attributing stagnant revenue to a temporary reduction in the sales force, with revenue growth expected to return in 2026.
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