Investor Confidence Being Restored in Entercom

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Those are the words from respected Wall Street analyst Marci Ryvicker who hosted a luncheon for investors and Entercom management Wednesday. 35 investors attended, “which should tell you the level of interest investors have” in Entercom, according to Ryvicker.

Ryvicker said, “We thought management’s comments were extremely encouraging with regards to the pace of CBS Radio’s integration.” This is good news for Entercom. It comes on the heels of Ryvicker, a big fan of Entercom, calling the first quarter, “unfortunate.” Here’s more detail from Wednesday’s get together in New York City with CEO David Field and CFO Richard Schmaeling.

Also encouraging, according to Ryvicker, was Field and Schmaeling pointing out that Entercom will recognize $110 Million in synergies from CBS Radio and generate $200 Million in net proceeds from station divestitures. The company is also telling investors it will “substantially de-lever.”

Field and Schmaeling also told investors that Entercom has a “formidable plan B” if United States Traffic Network cannot gets its financial act together. USTN cost Entercom millions of dollars in revenue when it was unable to pay its bills. Entercom has since taken a financial position in USTN hoping to help the company get back on its feet.

On the radio industry in general, CEO David Field told investors he’s confident the industry will start to narrow its ad share gap due to fruitful discussions Entercom and iHeartMedia are having with new national advertisers. Ryvicker pointed out one tier 1 buy by Nissan on Entercom’s stations. And, she expects sports gambling to be big for the company. “Entercom should outperform the industry given legalized sports gambling, especially in the states where it is currently legal and expected to be legal soon. Entercom is the largest sports broadcaster in all of radio – and possibly all of media (when you consider its breadth of rights).”

Note: Marci Ryvicker is co-chair (with Beasley Media CEO Caroline Beasley) of Radio Ink’s Forecast 2019, which will be presented November 14 this year at The Harvard Club in New York City. Details HERE

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