To quote an earlier response, "Key word, 'if.'"
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
Town Square IPO
- Thread starter SirRoxalot
- Start date
Sure, but whatever money they're making, it's money that most of their competitors aren't getting, and it comes at very low cost. From an investor's point of view, that's a positive. But compared to Chipotle Mexican Grill (CMG), which is now selling at an amazing $678 a share, there's still a lot more profit in burritos.
There are probably some radio station websites getting that many hits, and they're getting ad dollars too. Sounds more like a shiny object used to distract investors. I guess that the good news is that, unlike Clear Channel, they're making a profit.
So now we have actual numbers, and the non-broadcast figures are impressive. This from Tom Taylor:
"But even with flat local revenue at around $78.1 million, Townsquare’s digital and “on-site” revenue lines kept pulling the load. What Townsquare’s calling “Other Media & Entertainment” – digital, mobile, event – jumped 39% to $28.2 million. So the total revenue gain, pro forma as if everything was the same in 2013 and 2014, equalled 7.8%, to $106.3 million."
If non-broadcast makes up a quarter of your revenues, and it's still growing, there's a chance that it will soon become the tail that wags the dog.
"But even with flat local revenue at around $78.1 million, Townsquare’s digital and “on-site” revenue lines kept pulling the load. What Townsquare’s calling “Other Media & Entertainment” – digital, mobile, event – jumped 39% to $28.2 million. So the total revenue gain, pro forma as if everything was the same in 2013 and 2014, equalled 7.8%, to $106.3 million."
If non-broadcast makes up a quarter of your revenues, and it's still growing, there's a chance that it will soon become the tail that wags the dog.
Only if you think that 25% of your income is more important than 75% of your income. If it approaches 50%, you have a point. Let me know when you get there.
But we know OTA revenue is flat to declining, depending on the market. Digital is growing.
If Townsquare's digital division has comparable rates of growth in the next two years, digital will be roughly half of their gross revenues.
I don't think it's a question of what's "more important." Investors are concerned with growth. So the where's the growth? If digital is growing by 39% in one year, then it won't belong before it eclipses the broadcast. And because they're not paying music royalties for their content, it's more profitable than what Clear Channel is doing with IHeartRadio.
If you put all your eggs in the digital basket, it had BETTER grow revenue. Will it overtake your primary business? Maybe - especially if you don't invest in your primary business, particularly in cap-ex and talent (both sales and programming), and it languishes. 39% growth is a number than gets investors excited, but you have to remember that increasing your revenue from $100 to $139 yields the same percentage.
Who said to "put all your eggs in the digital basket?" No one.
U
Unregistered
Guest
You are 100% right Rox
- Status