Entercom Communications (ETM, Financial)is the second-largest owner of radio stations in the U.S. and operates digital and events businesses. Shares declined 39 percent in the quarter after the company reported revenue and earnings miss. The main culprit was deteriorating local advertising sales, which has been a longstanding problem for Entercom and other radio station operators. Entercom also experienced weak ticket sales, largely due to poor weather, at some events that the company operated. While Entercom has done a fine job extracting synergies from its 2017 merger with CBS Radio, it has struggled to boost local ad sales thus far. Entercom’s outlook is for better revenue growth by the end of the third quarter, but for now, the investment community remains skeptical.
From Keeley Asset Management's Keeley Small Cap Dividend Value Fund third-quarter 2019 shareholder letter.
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