Audacy is trading at 60, cents that is. If they don't get back above $1, they may be delisted.
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Audacy stock price
- Thread starter RadioGuy1864
- Start date
is Audacy (FKA Entercom) the only one of the big 3 in US Radio to not file for bankruptcy yet. i know iHeartMedia and Cumulus already had filed Ch. 11 and recovered.
not the first time, the previous times as ETM the Fields family bought stock back to raise the price, they could also do a reverse split.
Yes, plenty of ways to game the market.
If I recall, Entercom was always probably the healthiest of the major broadcasting companies over the past decade and seemed to make pretty solid/strategic decisions.
The problem is with the CBS purchase came a lot of stations in addition to what Entercom had with high overhead and pretty large payrolls. From what I have read over the years, CBS Radio was not exactly a lean company. Entercom got a lot of good stations, but they also got a lot of expenses.
I don’t think they’ll be delisted or file chapter 11 soon, but I do see more cuts coming and a rush for a more nationalized platform like iHeart has. Problem is, iHeart has been working on said platform for almost 20 years.
The problem is with the CBS purchase came a lot of stations in addition to what Entercom had with high overhead and pretty large payrolls. From what I have read over the years, CBS Radio was not exactly a lean company. Entercom got a lot of good stations, but they also got a lot of expenses.
I don’t think they’ll be delisted or file chapter 11 soon, but I do see more cuts coming and a rush for a more nationalized platform like iHeart has. Problem is, iHeart has been working on said platform for almost 20 years.
In particular, they got a bunch of aging and expensive AM stations with formats that most people under 50 don't use, whether over the air or online.
The quickest way to lose money in the radio business is to overpay when you are buying. Entercom (like so many others) fell victim to that trap.
I think the absolute worst may be Citadel buying ABC. Second worst may be Cumulus buying Citadel.
That line of thinking ignores the pandemic. Audacy was doing fine, turning $1.7 billion a year in revenues, and then the pandemic hit. They quickly lost more than half of that. Their debt payments didn't account for a 100 year pandemic and the resulting recession. Last year was a slight improvement to $1.2 billion. But the first half of 2022 is trending lower. The advertising hole we're in now is the worst one I can remember. It's killing a lot of media companies.
Interesting they included KROQ of all things that Audacy has done…
A lot of the stuff that gets advertised on the radio is discretionary spending - often big ticket items like cars and home improvements, alongside smaller optional items like restaurants on local stations. This is the stuff people cut back on when their salary stops covering the bills. When energy has gone up as much as it has, with predictions of even worse increases this winter, people aren't going to say "now's the time to buy that new Nissan on finance". Everyone but the very wealthy is in hunkering-down and saving mode.
Personally, I'm enjoying the radio we have while we still have it - because the headwinds are too strong and I don't think a lot of the current stations will be here in their current form in 18-24 months, barring an economic miracle. I hate to coin this awful overused phrase, but the demographic, economic and technological issues facing traditional broadcast radio are something of a "perfect storm".
And one could argue that storm started forming in 1996 and big waves flipped the boat over in 2008. Prior to the recession, groups were paying ridiculous 15X cash flow for stations, including AM. Now many are standing in the median between lanes with a cardboard sign that reads: "AM station owner, please help".
Radio never truly recovered from 08 and then, as BigA pointed out, they got hit with the pandemic. And if you think radio is the only form of media being crushed, Meta, Facebook's parent company has lost over 52% of its value this year alone. That's right, the darlings of new forms of media are feeling the pressure too. Radio has just been going through it longer than anyone else.
Audacy Buys Podcast Discovery App And Tech Firm Moonbeam.
Moonbeam, the year-old technology company created by tech entrepreneur Paul English, has been acquired by Audacy. Terms of the deal have not yet been made public, but English says the
Audacy has a deal with Moonbeam. How that improves the stock value is yet to be seen here.
I hope Mr English got the amount in cash, because there is no way in hell I'd be doing it by way of equity in ETM or whatever they are called this week.
Audacy says quarterly earnings are up, and also note of possible NYSE delisting.
www.allaccess.com
David Field's latest contract has his bonus tied to stock price, so this affects him directly.
The company missed its Q2 expectations:
www.insideradio.com
There are several ways to present the same information.
Radio Industry News, New Music, Music Promotion, Radio Station Song Charts
All Access offers the latest radio industry news and music news, music promotions for record companies new music, radio station song charts, and much more. AllAccess.com has been serving the radio and music industry since 1995, always bringing you the highest quality content with...
David Field's latest contract has his bonus tied to stock price, so this affects him directly.
The company missed its Q2 expectations:
Second Quarter Revenue Growth Slows To +5% At Audacy.
The declining economy slowed Audacy’s revenue rebound in the second quarter. Reporting financial results before Friday morning’s Opening Bell, radio’s second largest operator said its Q2 revenues were $319.4 million,
There are several ways to present the same information.
As I'm sure he has a substantial share of voting shares, so that makes sense. One doesn't make money from shares unless they sell them.
His father, the founder of Entercom, also has a big stake. Imagine having your father pound you about stock price.
Wow, I didn't know Joe was still around.
I wonder if Mr. Field will be willing to chop more of these alternative stations that are floundering. It’s known that is his favorite format and he was behind the big “Alt” push starting in 2017.
Then again, I’m not sure if there are any more viable options for the “Alt” stations that may not be doing that well (Miami, Detroit, etc).
Then again, I’m not sure if there are any more viable options for the “Alt” stations that may not be doing that well (Miami, Detroit, etc).
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