Entercom Cuts Back Quarterly Dividend

Dividend Reduction

ENTERCOM late FRIDAY cut its regular quarterly dividend by 78%, announcing that its Board of Directors had declared a 2 cent/share dividend, down from 9 cents/share, payable SEPTEMBER 13th to shareholders of record as of AUGUST 29th.

The move, which sent the company's stock lower in after-hours trading FRIDAY evening, was said in a press release to allow ENTERCOM to reallocate the $39 million of capital from dividends to share repurchases and debt payment.

Pres./CEO DAVID FIELD said, “We believe that redeploying capital from dividends to both share buybacks and debt reduction will allow us to drive increased shareholder value given our belief that our stock is now trading significantly below its intrinsic value and because this action will allow us to accelerate progress on our commitment to reduce total net leverage to four times.”

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