Exactly three months ago, Entercom Communications shares tumbled following the release of Q1 2018 earnings that investors clearly were dissatisfied with. There was the revelation of a dispute with US Traffic Network (USTN), resulting in millions of uncollected dollars and an impact in its revenue. Additional concerns about the company’s integration of CBS Radio stations and the time it will take to turn them around arose.
With Wednesday’s release of its Q2 results, Entercom proved that it is indeed on track with its growth plan and recovery efforts at CBS stations it has repeatedly said were neglected by their former owner. USTN matters are now in the past, although pending litigation is in the forecast.
As such, investors cheered. ETM shares soared 20% to $8.35, as net revenue and operating income each soared for Entercom during Q2. When factoring in discontinued operations, net income also propelled upward.