“Radio is a great business,” Entercom President/CEO told analysts on Wednesday. He added that as “other media continue to face challenges, radio’s ability to increase total ad share is significant.”
Auto, entertainment, restaurants and fast food categories performed well for the company in the quarter. And the Lincoln Financial acquisition, which closed a year ago, is accretive, said Fields. The company is likely to “retire some Lincoln financial paper” in 12 months.
Pacing for Q3 is up 3%. Financial, entertainment, groceries, TV and cable are strong categories so far.
The company’s free cash flow is “almost 50% higher now” than at the same time last year and the company will continue to de-lever.
Asked about ad rates versus ad loads Field said emphatically: “We do not increase our ad loads.”
He agrees with SiriusXM CEO Jim Meyer who essentially said Tuesday more audio competition is good and not “cannibalistic.” But rather it’s “additive to the whole audio ecosystem,” said Fields.
Entercom is one of five radio groups working with Shazam on an alternative digital audio measurement system, we reported. Field said that’s not a knock on Nielsen, who’s been a “great partner.” He sees the new system, which is still coming together, as a way to boost radio’s share of the media mix.
Getting to the numbers for the second quarter, Entercom reported net revenues increased 20% to $120.5 million while station expenses rose 18% to $82.3 million. Free cash flow rose 47% to $20.9 million.
