Entercom Q4 Revenues Drop 14%
February 24, 2009 at 6:05 AM (PT)
ENTERCOM fourth-quarter 2008 net revenues decreased 14% to $104.1 million and station operating expenses decreased 5% to $64.8 million. The company took a non-cash after tax charge of $395.2 million, leading to a net loss that widened from $9.363 million to $429.904 million (25 cents to $11.91/share, basic and diluted).
Station operating income decreased 25% to $39.3 million, and EBITDA decreased 25% to $35.3 million. Adjusted net income per share decreased 20% to 33 cents, and free cash flow decreased 24% to $23 million.
Pres./CEO DAVID FIELD said, "In the face of difficult general economic conditions that are adversely impacting advertising revenues, ENTERCOM has taken significant measures to improve our short-term performance and enhance our long term prospects. We have materially reduced expenses, while at the same time increased our investment in various digital and new revenue initiatives.
"We also are pleased to note that in 2008, ENTERCOM posted a three percent increase in free cash flow and reduced long term debt by $140 million. Finally, as we look to the future, we note that the fundamentals of the radio business remain strong. At a time of unprecedented change in media usage that is severely impairing a number of other media, radio posted an all-time record number of listeners in 2008 and remains the most cost effective major advertising medium in the nation."