Entercom Communications has released its second quarter financial results, with net revenue up three percent to $125 million, compared to $121.6 million in Q2 2016. However, operating income was $16.4 million, down from $27.6 million in the second quarter a year ago.
President/CEO David J. Field stated, “We continue to make great progress in our planning for our transformational merger with CBS Radio that will make us the #1 provider of original, local audio content in the U.S. and create the scale to compete with other media for a larger share of ad spending. As we meet with clients, agencies, and strategic partners, we are more confident than ever about the value-creating opportunities ahead. Second quarter revenues increased 3% as reported, and up 1% on a same-station basis ex-political. Expenses were up more than usual due to our acquisition in Charlotte, some significant one time only expenses and additional costs related to building the organization in anticipation of the merger. We expect expense growth to recede in the 3rd quarter and look for meaningful margin expansion post-closing.”
Additionally, Entercom announced that, as permitted under its merger agreement with CBS Radio, it would pay a special one-time dividend of $0.20 per share on August 30 to shareholders of record on August 15. This dividend will be in addition to the company’s regular quarterly dividend of $0.075 per share, which will be paid on September 15 to shareholders of record on August 15.
Second quarter results include $5.8 million in merger and acquisition costs related to the company’s pending acquisition of CBS Radio, which were primarily for legal and consulting services.
