Back in May, Entercom CEO David Field sounded optimistic about business in the second quarter. He said the company was pacing in the low single digits. When he gave that assessment, April was already in the books and it finished strong. Unfortunately for Entercom, business slowed down after that and Q2 did not perform as well as investors expected. Entercom’s stock tumbled more than 35%, Wednesday.
Field said he was sobered by the slowdown in Q2.
For the months of April, May, and June, Entercom reported a 2.3% increase in revenue with digital up 19%. National was strong in the quarter while events, due to bad weather, and local were down. Legacy CBS stations performed better than Entercom legacy stations in the quarter.
The strongest performing markets for Entercom in Q2 were Denver, Orlando, and Philadelphia. The hottest categories were Consumer Products, Telecom, and TV and Cable.
Looking ahead to Q3, with tougher political comps, pacing is up in the low single digits and Field says he expects the quarter to finish up in the low single digits.
The company also said while the integration of the CBS radio stations took longer than expected, cost synergies will come in at more than $170 million.