Entercom Communications Corp. (NYSE:ETM) Q3 2019 Earnings Conference Call - Final Transcript
Nov 08, 2019 • 10:00 am ET
Good morning and welcome to Entercom's Third Quarter 2019 Earnings Release Conference Call. [Operator Instructions] This conference is being recorded. I would like to introduce your first speaker for today's call Mr Rich Schmaeling, CFO and Executive Vice President. Sir, you may begin.
Thank you very much Britney. Good morning and welcome to our third quarter earnings call. This call is being recorded and a replay will be available on our company website shortly after the conclusion of today's call and available by telephone at the replay number noted in our release. During this call, the company may make forward-looking statements which are based upon the company's current expectations and involve risks and uncertainties. The company's actual results could differ materially from those projected in these forward-looking statements. Additional information concerning factors that could cause actual results to differ materially are described in the Risk Factors section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2018. As such, risks and uncertainties may be updated from time to time in the company's SEC filings. We assume no obligation to update any forward-looking statements, except as may be required by law.
During this call, we may make reference to certain non-GAAP financial measures. We refer you to the Investors page of our website at entercom.com for reconciliations of such measures and other financial information. David?
Thanks, Rich. Good morning. Thanks for joining us for Entercom's third quarter earnings call. I am pleased to report that we achieved strong quarterly financial results in the quarter and, in addition, made great progress on our various strategic growth initiatives and enhancements to our core business capabilities. Starting with the financial headlines, Entercom posted 13% EBITDA growth in the third quarter, driven by 2% revenue growth and expanding margins. Ex-political, revenues were up close to 3%. Adjusted net income per share increased 23% for the quarter. We achieved double-digit growth in digital and network revenues. Political revenue was, of course, down substantially in this off election year, and events revenue was also down as we continue to selectively trim our portfolio to eliminate poor performers while selectively adding a limited number of new events.
In addition, during the third quarter, we capitalized on the strength and scale of our outstanding station group to gain 210 basis points of share in spot radio revenues as reported by Miller Kaplan. Notably, we gained share in most of the country's largest markets, including New York, Los Angeles, Philadelphia, Dallas, Atlanta, Houston and Washington D.C., which, by the way, are all legacy CBS radio markets. And in total, Entercom spot radio revenues, ex-political, were up 1% for the quarter. Our best-performing ad categories were professional services, financial services, insurance, TV cable, telecom, drugstore pharma and home improvement. Of our Top 15 ad categories, 12 are up and only two were down, being auto and concert/movies. July and August were the stronger months of the quarter, with September being a bit softer.
Let's turn to