Entercom Q1 Revenues, Income Off
May 8, 2006 at 6:57 AM (PT)
ENTERCOM first quarter net revenues fell 3% to $91.1 million (same station off 4%), with net income dropping from $16.237 million to $7.755 million (34 to 19 cents/basic and diluted share).
Pres./CEO DAVID J. FIELD said in a press release that "first quarter results were adversely affected by sluggish advertising conditions affecting all traditional media, exacerbated by weakness in the NEW ORLEANS and BOSTON markets. ENTERCOM's revenue results for the quarter were in line with the markets in which we operate. Looking ahead, we are optimistic that radio revenues will accelerate as advertisers take notice of the strength and stability of radio listening levels and the medium's highly compelling value proposition vs. competitive media. Our investments in new brands, enhanced content, new platforms and industry initiatives will drive value for our listeners and customers and enhance the company's business model going forward. We believe our stock remains significantly undervalued and have continued to repurchase our stock, acquiring 2.6 million shares during the quarter. In addition, we commenced a quarterly dividend of 38 cents per share."
The company's board has approved the continuation of its share repurchase program by authorizing an additional $100 million, with the amount and timing of buybacks over the next year subject to the discretion of management depending on market conditions and other factors.
Second quarter guidance is for revenues to fall by mid-single-digits.