Entercom reports Q2 adj. EPS (28c), consensus (22c) » 08:0808/0708/07/20
Reports Q2 revenue…
Reports Q2 revenue $175.9M, consensus $204.32M. David Field, President and CEO, 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. 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."
|Over a week ago|
iHeartMedia price target raised to $11 from $8.50 at B. Riley FBR » 09:2207/2407/24/20
IHRT, ETM, CMLS
B. Riley FBR analyst Zack…
B. Riley FBR analyst Zack Silver raised the firm's price target on iHeartMedia (IHRT) to $11 from $8.50 and keeps a Buy rating on the shares. While radio broadcasting stocks have rallied over the past three months, visibility into a potential recovery for radio advertising remains very low, Silver tells investors in a research note. Even with the recent bounce, equity values are still down 50% year-to-date, given the space's significant exposure to small and mid-sized business ad dollars and auto travel, investor aversion to high financial and operating leverage, and speculation that the pandemic will accelerate the shift of ad dollars away from radio, says the analyst. Silver, however, continues to see "industry-leader" iHeartMedia as the most attractive way to play a potential recovery. He keeps Neutral ratings on Entercom (ETM) and Cumulus Media (CMLS).
FCC reaches settlements with radio group owners over political files » 14:3207/2207/22/20
BBGI, CMLS, ETM, IHRT, SALM
The Federal Communications Commission's Media Bureau reached settlements with six major radio group owners that will ensure timely compliance with rules requiring that radio stations upload to their online public inspection files records of requests for the purchase of political broadcast time. The six group owners are: Alpha Media USA LLC; Beasley Media Group Licenses, LLC (BBGI); Cumulus Media New Holdings Inc. (CMLS); Entercom License, LLC (ETM); iHeartMedia, Inc. (IHRT); and Salem Media Group (SALM). Collectively, these companies own and operate 1,884 commercial radio stations across the country. Section 315(e)(3) of the Communications Act of 1934, as amended, requires stations to place information about each request for the purchase of broadcast time for all candidate-sponsored advertisements and certain issue advertisements in their political files for public inspection "as soon as possible." Similarly, Section 73.1943(c) of the Commission's rules requires information to be made available for public inspection "as soon as possible," barring any unusual circumstances. These provisions are intended to ensure that the public has timely access to important information about political advertisements, such as the identity of the sponsoring organization. Additionally, it is crucial that stations maintain political files that are complete and up to date because the information in them directly affects, among other things, the statutory rights of opposing candidates to request equal opportunities. The Media Bureau determined that the six group owners repeatedly failed to comply with their political file obligations in the past. The six group owners committed to adopting internal reforms and were able to demonstrate they had come into substantial compliance during the first quarter of 2020. Pursuant to the Consent Decrees, each of the companies will, among other things, implement strict compliance plans at each of their stations and submit detailed compliance reports to the Media Bureau through at least December 2021, confirming all information was timely uploaded to their online political files. Reference Link
|Over a month ago|
Wells Fargo to hold a virtual conference » 09:5406/0906/09/20
SSP, TGNA, NXST, IHRT, HMTV, GTN, ETM
2020 Wells Fargo Virtual…
2020 Wells Fargo Virtual NAB Conference will be held on June 9. Webcast Link
Entercom reports Q1 adj. EPS (1c), consensus 0c » 08:1505/1405/14/20
Reports Q1 revenue…
Reports Q1 revenue $297.03M, consensus $304.04M. David Field, president and CEO, stated: "I want to salute the outstanding work and dedication of the Entercom team, which has risen to the unique challenges of these unprecedented times to serve the American public, our customers and our communities. Entercom began the year on a strong note driving revenues up over 7% through February before facing the impact of the COVID-19 pandemic. We have taken important actions to mitigate the impact of the pandemic and are well positioned financially to operate effectively through the crisis. Strategically, we are well positioned to fully participate in the recovery and the attractive growth opportunities in the audio space, with strong leadership positions in broadcast radio and podcasting, the fastest growing digital audio platform, unparalleled leadership in news and sports, and strong data and analytics capabilities."
|Over a quarter ago|
Entercom price target lowered to $3.50 from $7 at Guggenheim » 08:0904/2304/23/20
Guggenheim analyst Curry…
Guggenheim analyst Curry Baker lowered the firm's price target on Entercom to $3.50 from $7 and keeps a Buy rating on the shares. The analyst reduced estimates for the radio names to reflect advertising headwinds from COVID-19. Baker forecasts core spot radio advertising will see pressure for the next four quarters. However, Entercom is taking aggressive cost-cutting measures to partially offset the steep advertising declines, the analyst tells investors in a research note.
Entercom adopts limited duration shareholder rights plan » 08:0504/2104/21/20
Entercom Communications announced that its board has adopted a limited duration shareholder rights plan to protect the long-term interests of its shareholders. The Plan has a one-year duration, expiring April 20, 2021. The board adopted the Plan at this time due to the unprecedented impact of the COVID-19 pandemic on equity market valuations which has led to substantial volatility in the trading of the company's stock and a dislocation in Entercom's share price. The Plan is similar to those adopted by other publicly held companies and is intended to promote the fair and equal treatment of all shareholders and ensure that the board remains in the best position to uphold its fiduciary duties to the company and its shareholders. The Plan is designed to allow shareholders to realize the long-term value of their investment by guarding against opportunistic efforts to capitalize on recent macroeconomic conditions, including open market accumulations and other strategies, aimed at gaining control of the company without paying all shareholders a full control premium for their shares. The Plan provides for the issuance of one preferred stock purchase right for each share of Class A Common Stock and each share of Class B Common Stock held by shareholders of record on May 5, exercisable for Series A Preferred Stock and Series B Preferred Stock, respectively. Generally, the rights will become exercisable or exchangeable only if a person or group acquires 10% or more of the company's outstanding Class A Common Stock, or 15% in the case of certain passive investors or announces a tender offer and the consummation of that offer would result in ownership above such percentage-levels. If the rights become exercisable, the rights will entitle its holder to purchase one one-thousandth of a share of the newly-created Series A and Series B Preferred Stock, as applicable, which, in each case, at the board's election, may be converted into shares of Class A and Class B Common Stock, respectively, of the company. The company intends to engage with shareholders regarding the Plan. If the board determines it is appropriate to extend the Plan, it intends to submit such an extension to a vote of the shareholders at the 2021 annual meeting of the shareholders.
Entercom downgraded to Neutral from Buy at B. Riley FBR » 08:3304/0704/07/20
B. Riley FBR analyst Zack…
B. Riley FBR analyst Zack Silver downgraded Entercom to Neutral from Buy with a price target of $1, down from $4.50. With his new estimates suggesting Entercom will likely trip its maintenance covenant in the second half of 2020, Silver sees the shares as "too risky to recommend here." Further downside risk exists if Entercom cannot secure covenant relief, says the analyst.
Entercom downgraded to Peer Perform from Outperform at Wolfe Research » 14:5504/0204/02/20
Before the open, Wolfe…
Before the open, Wolfe Research analyst John Janedis downgraded Entercom to Peer Perform from Outperform.
Deutsche Bank to host a conference » 04:5503/1103/11/20
AKAM, AMCX, BATRA, CCOI, CLNC, CMCSA, CRTO, CMLS, DEAC, DISCA, DLR, DTEGY, EROS, ETM, FOXA, LBRDA, IRDM, IHRT, GCI, MANU, MDP, TTWO, TRP, T, SSTK, UNIT
28th Annual Media,…
28th Annual Media, Internet & Telecom Conference 2020 will be held in Palm Beach, FL on March 9-11.