Entercom Q3 Revenue up 2% Expenses Slashed 9%
Entercom scrapped out a 2% gain in Q3 of 2012. After starting out strong in July, August and September softened and political revenue is not coming in to radio as originally hoped. Entercom CEO David Field said, "We don't have a definitive answer why business softened." He did say Q4 looks better, pacing up 6% so far.
Entercom cut another 9% from the expense line which helped produce a 25% jump in operating income ($38.7 million). Free cash flow was flat at $20.6 million. The 2% gain is an indication of a still uncertain consumer and confirmation that radio is not benefiting from political spending as it had hoped, and as much as Television is. In Q3 Entercom took in $1.2 million in political advertising. That's up about $1 million from last year but down from 2008, the last year of a presidential election. So far, Entercom has $4 million of political revenue on the books in Q4.
Back in August Field told investors he expected to see more top-line growth in the back half of the year as format changes started to take hold in several markets. He reported WEEI in Boston (now on FM) is up about 30% from a year ago and stations in San Francisco, while not market leaders, are making progress.
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