Entercom Reports 2Q Revenue Dropped 54 Percent

Entercom Communications Corp. today reported financial results for the quarter ended June 30, 2020.

Second Quarter Summary

• Reflecting the impact of the COVID-19 pandemic on the economy at large, the broadcasting sector and Entercom’s business, net revenues for the quarter were $175.9 million, down 54%, compared to $380.7 million in the second quarter of 2019
• Spot revenue declined 65% on a year-over-year basis while digital revenue rose 19%
• Reflecting the Company’s cost management initiatives implemented to address the pandemic and lower levels of advertising spending, station expenses for the quarter declined 32% to $188.9 million, compared to $277.9 million in the second quarter of 2019 while corporate expenses for the quarter declined 45% to $8.4 million, compared to $15.2 million in the second quarter of 2019
• Operating loss for the quarter was $45.3 million, which included a non-cash impairment charge of $4.2 million, compared to operating income of $64.8 million in the second quarter of 2019. Adjusted EBITDA for the quarter was a loss of $20.0 million, compared to income of $87.6 million in the second quarter of 2019
• Net loss per diluted share for the quarter was $0.40, compared to net income of $0.19 per diluted share in the second quarter of 2019
• Adjusted net loss per diluted share for the quarter was $0.28, compared to adjusted net income of $0.26 per diluted share in the second quarter of 2019

David J. Field, President and Chief Executive Officer, stated: “While Entercom generated significant revenue and EBITDA growth prior to the pandemic, second quarter results reflect the impact of the national economic challenges that quickly emerged as many advertisers closed businesses and significantly reduced their ad spend. Given our national leadership position in sports, second quarter top-line results were also significantly impacted by the cancellation of virtually all scheduled sporting events during the quarter. Excluding the impact of cancelled sports play-by-play, second quarter revenues declined 47%. However, after bottoming out in April, we have achieved significant sequential improvement every month through the Summer with third quarter business on books already 30% greater than where the second quarter finished.”

David Field

“The pandemic challenges accelerated our on-going transformation initiatives with a heightened focus on enhancing our business model, accelerating our growth opportunities, more fully integrating our powerful product offerings, and improving our service to both listeners and customers. In this regard, we implemented a range of company-wide initiatives, which lowered second quarter total cash operating expense by approximately $97 million, which exceeded our budget. In addition, we secured our strong liquidity position through an amendment to our credit facility and ended the second quarter with $208 million of cash, up from $189 million at the end of March.”

“Looking ahead, as the country’s #1 creator of original, premium audio content with robust data, analytics and attribution capabilities, scaled audience reach and a leadership position in virtually every segment of the dynamic and growing audio market, including broadcasting, podcasting, digital, events, network, sports and news, Entercom is strategically well-positioned for future growth and performance. Improving revenue trends combined with enhancements to our business model and active management of our balance sheet will enable Entercom to emerge as an even stronger company and build meaningful shareholder value. I want to thank our team for their resilience, dedication, and exceptional work as they have gone above and beyond to serve our listeners, advertisers and communities under the most challenging of circumstances over the past several months.”