Field: Radio Growth Will Pick Up
July 26, 2010: Entercom Communications President/CEO David Field said on today's second-quarter earnings conference call that national sales led the way in the company's improved revenue -- net revenue was up 4 percent in Q2, to $ -- with "strong double-digit growth." May was the quarter's strongest month, with April the slowest, while June, he said, "fizzled a bit" after starting strong.
Field said that, as the overall rate of economic expansion slowed, "We did experience a modest slackening of demand that took a bit of steam out of June and July." But, he said, there are encouraging signs for the rest of Q3 and the rest of the year. Field said, "August looks solid, September looks great, and although it is very early, fourth quarter looks terrific."
Field said of the industry as a whole, "It's worth noting that we are now two quarters into a solid recovery in radio ad spending." Recoveries, he said, "occur in fits and starts," adding that there are "compelling reasons to believe that the growth rate will re-accelerate." Field said, "We have an excellent opportunity to grow revenue over the next couple of years."
Asked about pricing during the call's Q&A, Field said, "We're making progress. We see that overall pricing in radio is up." But, he added, It's not up as much as we would like, and frankly, not up as much as it probably should be." With regard to the timing of ad placements, he said, "Our visibility is probably a little better. I think people re buying a little bit earlier than they were, as a general statement." But the change is not dramatic, he said.
Field said Entercom has filed comments in the FCC ownership proceeding supporting an idea that was earlier advanced by Clear Channel, of eliminating the AM and FM subcaps on ownership limits. He said, "We would support the notion that we would be able to own up to eight stations on either the AM or FM band" -- a proposal that, he said, "makes tremendous sense in light of the competitive environment."
Asked about royalties, Field said he was pleased by the recent interim reductions in ASCAP and BMI fees, saying those royalties as a percentage of revenue "had become very much out of lien and unfair." But, he pointed out, Entercom puts money into the artist community. He said there have been negotiations regarding a performance royalty, but "We'll just have to see where those talks go, if anywhere, down the road."
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