Entercom Net Revenues Down 6%
November 6, 2008 at 3:58 PM (PT)
ENTERCOM's Q3 report pretty much mirrored the hard times suffered by other radio groups. The company's third-quarter net revenues fell 6% to $115.6 million, from $122.9 million a year earlier. Station operating income (SOI) dropped even more -- down 15% to $44.2 million, while free cash flow decreased 2% to $280 million.
ENTERCOM's net earnings declined to $4.2 million (11 cents per diluted share) from $14 million (38 cents) in the year-ago period. Same station revenues decreased 7%.
"Despite the challenging economic conditions that have adversely impacted all ad-supported media, for the third quarter, ENTERCOM posted free cash flow and adjusted net income per share approximately equal to the prior year," Pres./CEO DAVID FIELD said. "ENTERCOM’s leading market positions and attractive business model continue to generate a significant amount of free cash flow, providing management with the ability to prudently deploy capital and enhance shareholder value.
"As the nation’s economic conditions have deteriorated further over the past few weeks, we have taken a number of steps to reduce expenses while continuing to increase our investments in new technologies and in our sales and marketing capabilities in order to drive future growth. We are also encouraged to note that radio stands to benefit as advertisers reallocate their spending to increase their ROI."