Entercom Q3 Net Revenues Fell 30%, $0.13 EPS Loss

RADIO ONLINE | Friday, November 6, 2020

Entercom

Entercom Communications reported third quarter net revenues fell 30% to $268.5 million from $386.1 million in 2019. Digital revenues grew 41% to $47.3 million propelled by growth in podcasting and digital audio advertising. Station expenses declined 16% to $228.1 million from $272 million. Adjusted EBITDA was down to $31.1 million from $98 million. The company posted a net loss of $16.8 million (-13 cents per diluted share) as compared to a net income of $38.2 million (28 cents) in the year-ago period.

Operating loss for the quarter was $0.3 million, which included a non-cash impairment charge of $11.8 million, compared to operating income of $79.5 million. During Q3, the company used cash on-hand to pay down its outstanding revolver from $243.7 million at June 30 to $77.7 million at September 30. Liquidity at September 30th was $198 million comprised of $165.6 million of available revolver capacity and $32.4 million of cash on-hand.

President/ CEO David J. Field stated, "I am pleased to report that Entercom continued to make significant organizational improvements in the third quarter in the face of the deeply challenging pandemic. Third quarter net revenues were up 53% from the second quarter while our continuing work on enhancing our business model yielded an 18% reduction in operating expenses versus the prior year enabling us to rebound to positive Adjusted EBITDA of $31 million. We expect further improvement in both revenues and Adjusted EBITDA in the fourth quarter.

"We continue to suffer from the deep impact of the pandemic which has caused many of our advertisers in businesses such as concerts and live events, tourism, gyms, nightclubs, museums, movies, theme parks, public transportation, airlines, restaurants, and others to temporarily cease or significantly curtail their operations and advertising. We look forward to welcoming them back once we emerge from the pandemic.

"As an illustration of the appeal of our evolving capabilities, we recently announced a landmark six-year partnership with FanDuel which we believe is the largest advertising deal in the history of the radio business. This partnership is a powerful testament to the importance of our unrivaled audio sports business which includes most of the country's leading sports talk stations and personalities with their deep fan engagement."