Revenues, Income Fall For Entercom In Third Quarter

Q3 Results

ENTERCOM COMMUNICATIONS CORP. third quarter net revenues fell 30% year-to-year to $268.5 million, although the number was up 53% compared to second quarter. Like other radio companies have recently reported, ENTERCOM's net revenues showed sequential improvement during the quarter: on a year-to-year basis, JULY was down 36%, AUGUST was down 32%, and SEPTEMBER was down 25%.

Meanwhile, digital revenues increased 41% year-to-year to $47.3 million, reflecting audience and revenue growth in podcasting and digital audio advertising. Operating income fell from a gain of $79.5 million in third quarter 2019 to a loss of $300,000, including a non-cash impairment charge of $11.8 million; Adjusted EBITDA fell from $98 million to $31.1 million year-to-year.

Pres./CEO DAVID FIELD said, “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.

"We continue to build and transform ENTERCOM into a leading multi-platform audio content and entertainment company with scaled audience reach, robust data, analytics and attribution capabilities, and a leadership position in virtually every segment of the dynamic and growing audio market, including broadcasting, podcasting, digital, events, network, music, sports and news. ENTERCOM is strategically well positioned for future performance as our enhanced capabilities enable us to expand our customer relationships and accelerate growth.

"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.” 

« see more Net News