Entercom Q1 Net Revs Down 4%, Earnings Swing to Loss

RADIO ONLINE | Thursday, May 14, 2020 | 11:53am CT

Entercom

Entercom Communications reported first quarter net revenues declined 4% to $297 million from $309 million in 2019. Adjusted EBITDA was down 19% to $34.5 million from $42.7 million, while operating income fell to $11.4 million from $30.4 million. OI included a non-cash impairment charge of $1.1 million. The company posted a net loss of $9.13 million (7 cents per diluted share) as compared to net earnings of $3.12 million (2 cents) in the year-ago period.

After being up over 7% in February YTD, net revenues for the quarter were down 4% to $297 million due to the impact of COVID-19. Digital revenues were grew 41% YoY for the quarter, propelled by audience and revenue growth in podcasting and digital audio advertising.

To mitigate the impact of the downturn in revenues and to preserve liquidity, the company reduced fixed costs by $150 million during the remainder of 2020. It also cut planned capital expenditures by over 40% to a revised range of between $25-$30 million for 2020. Due to benefits provided by the CARES Act, cash income tax payments are now expected to be less than $10 million for 2020.

President/CEO David J. Field stated, "Entercom began the year on a strong note driving revenues up over 7% through February before facing the impact of the COVID-19 pandemic. We have taken important actions to mitigate the impact of the pandemic and are well positioned financially to operate effectively through the crisis. Strategically, we are well positioned to fully participate in the recovery and the attractive growth opportunities in the audio space, with strong leadership positions in broadcast radio and podcasting, the fastest growing digital audio platform."