Entercom Reports Q3 Results
November 2, 2009: Entercom Communications reports that its net revenues were down 14 percent in the third quarter, to $99.8 million from $115.6 million in the same period in 2008. Station expenses were down 8 percent, to $65.6 million from $71.3 million, and the company reports operating income of $23.4 million in the quarter, down 28 percent from $32.8 million.
Station operating income was down 23 percent, to $34.2 million from $44.2 million, and EBITDA fell by 25 percent, to $29.7 million from $39.4 million. Entercom's net income in Q3 came in at $18.2 million (50 cents per diluted share), compared to $4.3 million (12 cents) a year ago.
Entercom also in Q3 made an agreement to sell some tower facilities, and received $4.5 million in proceeds from that sale in the quarter; it expects to receive additional proceeds in Q4. It also reduced debt by $25.4 million in the quarter.
"Entercom's third-quarter results improved sequentially from the second quarter as business conditions stabilized and the company's cost-cutting measures continued to drive expenses lower," Entercom President/CEO David Field said. "Entercom's third-quarter results improved sequentially from the second quarter as business conditions stabilized and the company's cost-cutting measures continued to drive expenses lower. We are increasingly optimistic about 2010 based upon a number of indications of improving demand for advertising in the year ahead, particularly in light of easy comparative results after two years of cyclical decline across virtually all ad sectors. Furthermore, we believe that radio’s strong audience listening trends and outstanding value proposition for advertisers position the industry to grow at the expense of certain competitive media experiencing significant audience erosion."
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