Entercom Q1 Net Revenues Increase 1.4% to $97.5M

RADIO ONLINE | Monday, May 8, 2017

Entercom Communications report first quarter net revenues increased 1.4% to $97.5 million from $96.1 in 2016. Station expenses grew 5% to $75.4 million, while station operating income (SOI) fell 10% to $22 million. Adjusted EBITDA was down 23% to $14.1 million. The company posted a net income loss of $9.88 million (25 cents per dilute share) as compared to a net income of $3.99 million (10 cents) in the year-ago period.

President/CEO David J. Field stated, "I am very pleased with our progress on all fronts as we continue to plan and prepare for our transformational merger with CBS Radio. This will truly be a game-changing event for Entercom as we will achieve a number of scale-related benefits, including the ability to compete far more effectively against other media for a larger share of advertising spending."

He continued, "First quarter revenues increased 1.4%, down about 1% on a same-station basis ex-political. We experienced a highly unusual degree of large one-time only expenses during the quarter (including the return of a station license in Sacramento, CBS transaction costs and our CFO transition), that drove expenses significantly higher. Looking ahead to the completion of the merger with CBS, we expect synergies that will drive margin expansion."

On February 2, Entercom inked a deal to combine with CBS Radio in a tax-free, all stock transaction. The merger will give Entercom positions in all of the top 10 markets and 23 of the top 25 markets. Based on Entercom's current stock price, the combined company will have a pro forma equity value of approximately $1.6 billion. The combined company will be continue to be led by David J. Field.