More from the Ryvicker note where she states that there are concerns with the integration given “CBS Radio’s underperformance.” She writes, “CBS Radio’s underperformance vs. the industry and Entercom seems to have resulted from poor management vs. station portfolio or brand.” And she believes Entercom can turn that around within 12 months.
CBS Radio is home to some of the most recognized brands in the business, such as: WFAN, 1010 WINS and WCBS in New York, WBZ in Boston, WBBM in Chicago, KROQ in LA and many others. Ryvicker says “CBS Radio has great brands that have been mismanaged – thus there is real opportunity for growth in ratings and revenue. This should be good for Entercom and the industry, which has more or less lacked a leader for quite some time.” It’s worth noting that CBS Radio has consistently been ranked the second highest billing radio company, in the BIA/Kelsey revenue ranker, behind only iHeart with far fewer stations.
For example, in 2015 CBS Radio’s revenue was 1.25 Billion generated from 117 radio stations, compared to iHeart’s $2.6 Billion from 862 stations. And in 2016 CBS Radio owned four of the top ten billing radio stations in the country. Of course, since the merger was announced there has been a lot of expense cutting going on (see WOGL Philadelphia) as Entercom looks to produce at least $25 million in synergies for investors.
If the stations are being mismanaged that has to be tough for previous boss Dan Mason to be watching.