Entercom’s stock rallied in Friday trading after the company narrowly beat Wall Street estimates in its third quarter earnings report. Shares of “ETM” jumped 17% to close at $4.32 on the news that the company’s earnings increased 13% to $98.0 million, up from $86.7 million in the prior year period. Q3 revenues rose 2.0% to $386.1 million, up from $378.5 million in the same period one year ago. Revenues grew just under 3% excluding the impact of political advertising.
In a press release ahead of the company’s earnings call, Chairman, President and CEO David Field said billings from the company’s digital, network and national businesses were the primary growth drivers.
Station operating expense fell 2% to $272 million while operating income increased 1% to $79.5 million.
On a per-share basis, Entercom had a profit of 32 cents, up 26% from 26 cents for the same quarter last year.
Entercom ended the quarter with $1.725 billion in total debt and $45 million of cash on hand.
“I am pleased to report that Entercom delivered strong organic growth in the third quarter with Adjusted EBITDA up 13% and Adjusted Net Income Per Share up 23%,” Field said. “Revenues increased 2% (just under 3% ex-political) driven by digital, national and network. In October, we announced the launch of DVRlike functionality for live radio on our Radio.com app, becoming the first company to offer that important product feature. This new feature and our recent acquisitions of podcasters Cadence13 and Pineapple Street Studios highlight the multiple ways we are working to enhance our product line and grow our relationships with our listeners and customers.”
Look for more color and commentary from Entercom’s third quarter 2019 financial results in Monday morning’s Inside Radio.