CEO David Field predicted a continued rebound for ad spending as Entercom reported that Q2 revenues were up 5% on a same station basis. Same station expenses were up only 2%, so operating income gained 9%.
“Entercom posted strong operating results in the second quarter as solid revenue growth and margin expansion drove double-digit increases in EBITDA and Free Cash Flow. Looking ahead, we are highly enthusiastic about our future prospects based upon the likelihood of continued economic recovery, the ad market rebound, radio’s excellent audience listening trends and cost effectiveness, secular weakness in certain competitive media, and the impact of our internal digital and business development initiatives. In addition, we should continue to benefit from our strong free cash flow generation that has enabled us to reduce our debt by over $200 million in the past two years,” said Field.
By the numbers, net revenues were up 4% to $105.8 million and station operating income increased 8% to $37.7 million.
The company noted that it reduced its net senior debt by $16.8 million during the quarter. As of June 30th, Entercom had $4.4 million in cash on hand and $701.2 million in senior debt.