The Business of Radio
by Tom Gordon & Jeff McKay
It was a very big week for earnings, and quite possibly the turnaround of falling Entercom stock following their 2nd quarter report which showed revenue nearly tripling to $372 million, but net income dropped sharply, apparently impacted by their now-broken relationship with US Traffic Network. Entercom stock on the news soared 20% in one day. Revenue for Townsquare Media rose nearly 2%, but net income was down, however the good news sent Townsquare stock jumping 16%, and Urban One stock also soared 16% following news of their quarterly results, with overall operating income doubling. On the downside, Salem Media’s 2nd quarter numbers were flat, and Wall Stret wasn’t kind at all with Salem stock plunging 17% on the news. Scripps continues to divest themselves of radio stations, first selling their flagship WTMJ in Milwaukee to Good Karma Broadcasting, and a week later Lotus Broadcasting buys Scripps stations in Tucson, Arizona and Boise, Idaho for $8 million.