Entercom Reports Q3 Revenue Down 4%. Bucking the trend of recent third quarter reports from other broadcasters showing generally moderate revenue growth, Entercom’s Q3 2013 financial statement indicated revenue down 4% on $98.4 million. President and CEO David Field stated that station expenses increased 5% and the resulting adjusted EBITDA was down 22% to $26.2 million. Field did tell investors during yesterday’s conference call that the company has been paying down debt, “We also continued to direct our substantial free cash flow towards debt reduction. During the third quarter alone, we cut our net debt by $20 million, and have now lowered our net debt by nearly $450 million over the past six years.” Field reported that local sales were down 5% and national revenue was basically flat. Field admitted the company’s sales effort was the problem, stating that in the markets in which the company operates, total radio revenue was up 1%. “Plain and simple, our sales performance in the third quarter was poor. We failed to get the job done and that is unacceptable. We lagged our radio peers by a significant margin, and failed to capitalize on our strong brands, ratings and marketing capabilities.” Field reminded investors that the company anticipated a down third quarter due to recently enacted changes in the company’s sales strategies and practices and that the changes will make the company stronger in the long run.
Saga Communications Inches Up 1.6% in Net Revenue. For the third quarter of 2013, Saga Communications says the $35.8 million (ex political) resulted in a net revenue increase of 1.6%. CEO Ed Christian told investors during yesterday’s conference call that considering how much the company is down from the loss of political from last year to this, the results are not bad though he had hoped to be up 2%. Christian can be downright chatty during these conference calls and he took the time to reference a Barron’s article indicating America may be at the beginning of decades of slow growth and suggested radio’s prescription for adapting to such an economy is to focus on rebuilding radio’s image. He says research shows people like radio but there needs to be more trust and respect. “If we blend the community – and you can define community any way that you like it – if we blend the community and we blend radio into one, we’ll continue to survive and prosper, even in a 2% GDP world.”
Salem Communications’ Broadcast Division Announces Flat Q3 Numbers. The broadcasting division of Salem Communications was up just a hair – 0.3% on $46 million dollars for the third quarter of 2013 compared to the same period a year ago. During yesterday’s conference call, CFO Evan Masyr broke down the company’s performance by format, reporting, “Thirty-nine of our radio stations are programmed in what we call our foundational format Christian Teaching and Talk, these stations contributed 45% of total broadcast revenue and increased 1% for the quarter. Block programming increased 2.3%, while infomercials were down 29.7% as we continue to reduce the infomercials on our radio stations to improve the overall programming on the stations. Our 26 news/talk stations had a decrease of 6% in revenue for the quarter. Overall, these stations contributed 14% of total broadcast revenue. The revenue from the 12 contemporary Christian music stations contributed 24% of total broadcast revenue and had an increase of 5% for the quarter. Again, we continue to see strong results from many of our music stations, most notably in this quarter Los Angeles and Dallas. The seven stations that we have programmed in Spanish language, Christian Teaching and Talk grew by 26%, and these stations comprised 2% of our broadcast revenue. Finally, with respect to the formats that we focus on the 10 stations in a business talk format, and that format contributed 3% of our broadcast revenue and had a decrease of 2% in revenue.” Thanks to Seeking Alpha for the conference call transcript. Members can read the entire call here.
Nielsen Promotes Mitch Barns to CEO. The ratings giant – which recently brought radio ratings into its fold with the acquisition of Arbitron – announces that Dwight M. “Mitch” Barns will succeed David L. Calhoun as chief executive officer effective Jaunary 1, 2014. Barns has been with Nielsen for the past 16 years, currently serving as president, global client service, which oversees $5.5 billion in revenue and leads the efforts of Nielsen’s Watch and Buy client service teams worldwide. Upon Barns’ succession, David Calhoun will become executive chairman of the board of directors, at which time Nielsen’s current Chairman of the Board, James M. Kilts, will step down as chairman, but will remain a board member. Calhoun states, “Nielsen is successfully implementing its global strategy, and the time is right to name the next leader to take the company to its next phase of growth. Mitch’s strong track record at the helm of a number of key Nielsen business units around the world – combined with his vision and commitment to our strategic plan – puts the company on solid footing for continued global expansion and value creation. I will continue to remain invested in Mitch’s success in my new role.” Barns adds, “I am honored by this opportunity to serve Nielsen as its chief executive officer, and I am thankful for the board’s vote of confidence. Throughout my 16 years at this company, I’ve been privileged to work side-by-side with talented leaders and associates in Nielsen businesses across the world. I look forward to continuing our work together to anticipate client needs with ongoing innovation and expand our footprint in developing markets, while consistently delivering growth and enhancing shareholder value.”
KFI, Los Angeles Critic Files Petition to Deny License Renewal. It’s probably not surprising to anyone at Clear Channel’s news/talk KFI, Los Angeles that Alex Nogales, representing the National Hispanic Media Coalition, has filed a Petition to Deny the station’s license renewal application. Nogales has long been a critic of the station’s programming. It’s hard to say whether Nogales actually believes the FCC would act on his assertions that because hosts such as John Kobylt and Ken Chiampou speak against illegal immigration that their show is “harmful and dangerous” and this could qualify as actionable or whether he just wants to get some publicity by announcing the filing of the Petition. Regardless, as we’ve seen countless times before – and most recently with the Commission’s refusal to deny license renewal for Cumulus’ WMAL-AM/FM, Washington – disagreements with the opinions of talk show hosts are not valid reasons for non-renewal. As it wrote in the recent WMAL case, the FCC states, “The Commission is prohibited from exercising any power of censorship over broadcast stations with respect to content-based programming decisions. A licensee has broad discretion – based on its right to free speech – to choose the programming that it believes serves the needs and interests of the members of its audience.”
Programmer and Consultant Greg Moceri’s Son Tony Writes New Hannity Theme Music. Tony Moceri is the 13-year-old son of talk radio programmer and consultant Greg Moceri and resides in Ada, Michigan. Tony has been playing piano since he was five and currently is a percussionist in his middle school’s band. Greg Moceri tells Mlive.com that, though he’s worked with Premiere Networks star Sean Hannity in the past, his connection didn’t influence the use of his son’s work. He says Hannity’s staff was seeking new music, “They wanted a change and asked for something upbeat and lively for the show opening. I wasn’t thrilled with what I was finding and then I remembered Tony’s piece and sent it to some people that I work with. They all thought it was perfect and so I sent it to Sean. I didn’t tell him where it came from; I didn’t want him to feel obligated. But he loved it and now they are using it.” Hannity told Mlive.com, “Isn’t this a great story? When Greg sent me the music, I thought it was a pop song and wondered why I had never heard it. I have a son about the same age…and I listen to a lot of kids music. I love music and this is spectacular.”
Odds & Sods. Hockey is back and so is WGN, Chicago’s broadcast series, “Chicago Blackhawks Live,” a number of one-hour radio remotes during the 2013-2014 season that take place over dinner and feature current Blackhawks players, legends, and front office executives. It’s hosted by Blackhawks radio broadcasters John Wiedeman and Troy Murray and the season premiere will feature Blackhawks forwards Bryan Bickell and Andrew Shaw. It takes place on November 11 at 7:00 pm at Old Town Pour House in Chicago…..Cuts at Rogers Communications are affecting some of the company’s spoken-word outlets. The Ottawa Citizen reports that CIWW, Ottawa is losing seven staffers as the station will simulcast sister CJCL, Toronto “Sportsnet 590” for weekends and part of the weekday programming. In all, Rogers is reportedly laying off 94 staffers…..MLB‘s Miami Marlins games will be heard on Clear Channel‘s sports talk WINZ, Miami beginning with the 2014 season. This past season, Marlins play-by-play was heard on Lincoln Financial Media‘s WAXY, Miami.
KIRO-FM, Seattle’s Dori Monson to Take on Governor Inslee in Hoops Challenge. KIRO-FM, Seattle talk show host Dori Monson gets to face off with Washington Governor Jay Inslee in a charity basketball game tonight that will be broadcast live on KIRO-FM. The “Clash on the Court” will benefit Food Lifeline and Sports in Schools. The program consists of a five-on-five co-ed game between local youth, coached by Monson and Inslee, followed by a five-on-five game featuring show hosts from KIRO Radio and “710 ESPN Seattle” up against local politicians handpicked by Jay Inslee. The event will conclude with a one-on-one game between Monson and Inslee. Monson jokes, “This may be my first and only opportunity to force a local politician to go right! This proves that, for us aging basketball players, we check our politics at the gym door. I’m thrilled Governor Inslee and I – along with our colleagues – are able to get together to raise money for two great organizations.”
ObamaCare Criticism, Presidential Approval Polls, Election Day, Toronto Mayor Crack Case and NFL Bullying Controversy Among Top News/Talk Stories Yesterday (11/5). Criticism of the rollout of the Affordable Care Act; new lower numbers for President Obama’s approval ratings; the high-profile races in Tuesday’s elections, including gubernatorial contests in Virginia and New Jersey; the admission by Toronto Mayor Rob Ford that he’s used crack cocaine in the past; and the accusations of bullying within the Miami Dolphins organization were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS.