Name Change Doesn't Eliminate Audacy's Debt Load

Aiming to become a bigger player in podcasts and sports betting, Philadelphia-based radio giant Entercom Communications Corp.  on Tuesday changed its brand name to Audacy, reports The Philadelphia Inquirer. 

The No. 2 radio station owner in the country has over the last several years spent tens of millions of dollars buying podcasting companies and originating audio series, CEO David Field said.

“Our name no longer fits,” Field said in an interview. “Entercom reflected radio only. We’ve outgrown it. It’s broader than that, and it also didn’t fit our aspirations.”

Audacy is now a multi-platform audio content and entertainment organization with radio broadcasting, podcasting, digital marketing, live entertainment, music, sports and news. With its acquisitions, the company is now America’s No. 3 podcaster behind NPR and iHeartMedia, he said. 

Boasting 170 million monthly listeners, Audacy has struggled to retain investor interest. Three years ago, the stock traded at roughly $10 a share; on Tuesday, the price closed at $5.07.

David Field

Skeptics pointed out that the name change had little impact on share prices because “much of this transition was already priced into the market,” said Subodha Kumar, a Temple University professor of marketing.

“The shift to platforms for audio is happening at other media companies, as well; they all have to embrace the change,” Kumar said.

The company’s debt load still lingers as a concern, he added. “This news doesn’t take away all the problems. It’s part of a bigger change in audio, which is advertising dollars shifting over to social media. I expect that trend will continue over the next five to 10 years.”

The pandemic took a toll: Revenues for the latest fourth quarter totaled $319.5 million, down 23% compared with the same period a year earlier. For 2020, total revenues totaled $1.1 billion, versus $1.5 billion in 2019. Advertising totaled $705 million versus $1.1 billion in 2019. The company’s events businessalmost completely dropped off, down 98% from a year earlier due to COVID-19.

Digital revenues were the major bright spot, totaling $58.8 million for the quarter, a 23% climb year-over-year , and up for the year, as well, to $189 million from $146 million a year earlier, propelled by strong audience growth in streaming and podcasting.

For the year, however, Audacy posted a loss — 13 cents a share in 2020 — versus a profit of $1 a share in 2019.

Audacy has 230 radio stations in 47 different markets, making it the second-largest radio broadcaster in the country behind iHeart Media.