ETM - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Entercom's Third Quarter 2018 Earnings Release Conference Call. [Operator Instructions]. This conference is being recorded. I would now like to introduce your first speaker for today's call, Mr. Rich Schmaeling, CFO and Executive Vice President. begin. may you Sir,

Richard Schmaeling

after those good call. welcome recorded. at This available number website The will and and expectations and from today's quarter our by available A our earnings be shortly company differ involve our and conference call on uncertainties. noted telephone conclusion morning, actual you, of to call, and third replay the Thank release. make results company materially is current the the based statements, forward-looking upon replay company's could any such in Should projected. statements are risks being

concerning any could company's differ SEC information statements. forward-looking no and actual the materially Form on results assume XX-Q, XX-K Additional to factors that filings X-K. in update are to described We cause obligation

to forma for of a now information. to financial make call, We measures. may Entercom. pro you reconciliation hand entercom.com, the call During to this other our financial we at and David certain non-GAAP Field, website over CEO I'll of the measures reference such refer

David Field

morning, and call. for us third our Rich, for joining everyone. earnings Thanks, quarter Thanks good

is will powerful we about value that combined sustainable, leader brands in to significant events forward. way merger, business group share new the scale on we the revenue the effectively a #X many total merger to original of have goal. are XX been more we has outstanding believe for This of going the in scale and well our today a our our growth the meaningful country's capabilities with content. plus the creator created in local news conviction audio radio larger and And drive would that towards on The creation a principally sports of week, entity Next live, special X-year which unrivaled spending. company the of and markets, of and an celebrate iconic most anniversary transformational top concentrated Entercom to compete ad Radio.com. radio, always

effectiveness moved on business, have growth change drive every opportunities. of and capitalize aggressively virtually facet the in organizational scale-driven to We our enhance to

accomplished business. a future dozens somewhat merger-related that an to enhance poor impact purging formats integration marketplace. months. the be moves practices the would the us hampered past to talented enhanced fact, we selling mass, business launched XX results in that by USTN ad like have changing extricated the across our organization, significant successfully who and growth executives, a short-term early meaningful launched we be of of and station is consistently including work business, transitioned sports we much and successfully businesses and national remain and built beginning, Radio.com XXXX new the from and extensive hard of the elevate brands. investments lower, local and would of drove half consistently events stated development, organizational effectiveness, our in have analytics, driving built strong and have and at that more. We the the achieved outstanding platform, first data a off And partnership traffic brands made our as high conversations such ourselves our are national inventory driving network in client completed we to lot team sales leadership our the successful tuning inherited, undercut most We and deliberate results, which a expense a enhancements of at over building podcasting period new high ratings, team with that resellers, its From systemic work, We costs new launched programming radio of synergies our beginning

track am with early during rewards line to acceleration, half I the the expected our beginning from we to that on the on our moments. growth of noted right solid second of that with in the year. that report also quarter. have line in and a bottom are expect plans, fourth and the growth top More line work deliver to We see top pleased this few and morning we

line previous declined reported earnings Third pacings where X%, with our during in call. we quarter revenues

Our quarter, driven declined by the cost during merger-related operating X.X% synergies.

our quarter As EBITDA declined a for result, the X%.

on Some additional color the quarter.

categories markets were best-performing Sacramento and and Seattle. Las Miami, Orlando, Our Vegas, improvement, e-commerce entertainment. consumer education, products, home Leading were Internet,

as up million increasing category In prior more the fact, their year over that Political advertisers levels. space spending in have were seen revenues levels consumer we in about products $X than major some significantly. doubled, revenues

We in us traffic the out cost of in have revenues business of first transition $XX wake made cash the our in building proprietary progress and half the of million lost approximately great which USTN, advertising in flow the year.

significant are once we and which quickly report in we ad impact. anticipate to our fact, expect the quarter up our ramping third USTN that sales pleased was and control cash last quarter that XXXX. traffic own again positive significantly traffic flow in line that inventory, have revenue traffic I'm from trimmed our impact in growth we the product we any business, and adverse from Now

progress addition, number the and organizational growth goals quarter, we of made drivers. important a In across during solid

$XX Here all the our of are nonstrategic proceeds. closing included of $XXX pending a and over sale of for land That Sacramento Angeles sales, of few land the $XXX announced $XX of sale and stations cash Los and divestitures on in million, million the highlights. previously million divestiture and land the to generating Bonneville, of We completed million. for in Chicago San in Francisco

accretive X, and We closed the Network have Entercom including Philadelphia capture the sale a to on the of and market. indeed.com Gamble, is network two and our Procter Home & Beasley With we scale significant Staples, blue-chip brands, market premium Audio share a July Depot, opportunity list Philadelphia $X WXTU-FM We $XX and larger billion in and Walgreens, in announced early it of WBEB-FM attracting to of a clients, $XX to leverage-neutral. of are These Hyundai. of previously launch acquisition large our radio outstanding the million, million. for the also on transactions immediately

in growth business network nice We XXXX our expect beyond. and to see in

strong to We continue investments ratings content, in also our with and our brands make driving significant growth. strides

an months portfolio-wide roughly now with ratings to Our of winning average is streak X growth extended X%.

are States. in is believe also rapidly We the local content. over few the app become the #X past on I at audio the positioned Radio.com Entercom very am that nation's emerged creator the to audio United capitalizing Radio.com. fastest-growing pleased Radio.com months, digital very audio platforms, one digital the leading about as We of original of accelerating to being has country's excited report performance

well TV country the nation's Our in platform, deep line sports be position #X an our up across local news leadership the our driver in as and personalities local of this the as will important in plus Home, podcaster of more, cover success live investment Sony's Radio.com now speakers, Google's Auto, Alexa the CadenceXX. Apple Amazon's through is of XX% on OTT Roku, now our Fire devices, Android smart market. and and Google CarPlay,

and rights Jersey Additionally, number we national distribution of exclusive in Football podcasts, Notre during content more Devils. deals New announcing landed screening the many We months. the the launched a and Dame to to and Islanders anticipate New and Basketball, quarter, the York coming

with of Radio.com across establish it the reach went users content. The very destiny, of our Radio.com. of extremely TuneIn. by the made at our X the we couple brands control points third all that exceeding TuneIn. progress are move XXX% our During users And we as and audience We digital total audio of our TuneIn, weeks, making from we and radio was distribution well, digital agreement active Total other streaming recovered greater for our digital up is channel Within build believed data quarter, player held year-to-date. terminated average than a in illustrate a because this digital and transition expectations. stations. the scale our world both now large SiriusXM important share losses Radio.com aggregator all critically a A monthly audio to our serious to platforms

platform growth and emerging result is national a offering, choice differentiated digital marketplace. a our sales Radio.com of as the now As the content fast in the viable audio of

agencies We this option as seen Radio.com significant a recognize space. increase RFPs that the have U.S. from across new a in growing in

at now of the major baseball sports Boston. Mets, New to this D.C. home new business. flagship Entercom all to home teams the move Turning that announced the to we'll we WCBS-AM We league season. coming York Washington recently from is are to the our but

be all line-up. to Eagles, we while that first we ever week, all of rating major KAPS X partner has through are expands, We to early of gambling-related revenue, positioned influx ad that few sports well reflection champions, an and the our a only of last sports rating states our the as broadcaster capitalize And are A currently, see high-growth also radio. very Warriors. position extensive and Red on flagship become beginning category in gambling, sports emerging to legalized Entercom Sox, have pro the unrivaled announced that leadership --

up Turning are X%. report to that I'm quarter performance, our pacing to revenues fourth pleased currently

Our solid double-digit expense line during the performed generate our with reductions EBITDA ahead enable has during growth back to in of quarter. growth quarter, meaningful the well the Political top coupled coming midterms previous in fourth XXXX. continuing us will

television of near roughly fourth model were X% account reminder, nowhere we'll political quarter significant revenues our are they a to and As as XXXX. in versus our for growth

Philadelphia, new national revenue Los Entercom legacy fourth in generate markets is positive including like in also Miami, expect Atlanta growth our more. business. we and the markets bottom audio also events, noteworthy New We across that Detroit, solid line Dallas, York, and Audio seeing are top Network digital growth Angeles, to CBS It and quarter,

the also of and highly has medium its marketing remained of other larger which and advertising and very least media. the a large some revisit the share in valuable largest with platforms having are growing it considerate undervalued a the the some innovation, frustration advertisers These superior mix. of the to conversations media and #X advertisers. to highly Plus, major more of we encouraged of radio partners. arguably ROI the compelling attributes. is emerged also is accelerating with disrupted the We traditional Radio to as are in to leading make media country's with by Nielsen, Radio is radio for major reach will attractive according their continue country investment fundamentals nature number other

significant possibility. we brands Renaissance and with fact, Procter are highly indeed Uber, their opportunity a spending real spending Amazon, radio Entercom radio for In Google, in like & others in boost influential a and increasing Gamble, medium. is the Peloton The and seeing

team, evidence partnership Audio of Entercom Our client and deployment are our of the national accelerate In is our this the considerable on commitment advocacy, opportunity. the components to Network our today, help our our of last confidence to turn turning all strategy suggested emergence important trend that our we greater. that I even capitalize call, saw that we in were and And corner.

the solid the Network. And and extricated delivering fourth of line achieved traffic are And new Audio reductions, all initiatives bottom successful completed successfully most strong very a growth we launched of the at the quarter. ourselves have scale Radio.com and ad growth pursuing and best now, we our just divestitures, expense fiasco Entercom growth from We business, are USTN significant that in line top are are getting driven started. the is and part driving

pursuing and we it will radio I'll as disrupted and space dollars alternatives. XXXX Rich. are Of advertisers hope. as way value across and underappreciated that, be ad turn disappointing into a proposition course, good will radio's the highly are trajectory multiple bumps we about other the fundamentally we growth from work over in increasingly are shift And not have enthusiastic and momentum to that out recognize solid there initiatives resume our opportunities undervalued will scale radio and With everything beyond. compelling growth along But excited driven our we ad

Richard Schmaeling

are a and On performance, half X%, basis, quarter the which were we're improvement consistent a at net revenues time our we of our pacing for down with third Stephen. our X-point call. XQ same-station where first Thanks, is

we quarter the the but are expenses million, down up not perspective, our costs. From trending came at $X.X operating X%, total an are are The fourth ex-political. For complete. ads integration, restructuring and about quarter, $XXX.X in currently costs restructuring integration we and and and pacing include reported merger-related yet X% expense M&A are up of million for onetime

of program, integration integration or and add another incurred cumulative of Whereas, to our original onetime through X restructuring for $XX the to months have to program $XX guidance our million million. go we expect costs We September but XX. entire so on the

expect provide but quarter guidance will onetime may the and the somewhat fourth exceed less. we come on prior would in guidance outlook we cost our We for refreshed call, our during that remaining

total million cash million. the quarter third forma like September And quarter, in our X.X% items For income, the up year-to-date, the and same-station we costs, about on a our $XX quarter, from the spending $XXX.X these operating are expenses in D&A to track In $XX in net expenses to noncash $XX.X total quarter, excluding and third million about for million new combined that expect X.X% out cost operating on cost onetime same-station the a or as synergy our September million our will of realized net by exceed basis came synergies, cash operating miscellaneous third or down be year-to-date. $XX ramp $XXX.X fourth cash about pro $XX.X X% of and investment And $XX we are adjusting initiatives. for million million, expenses bringing same-station products at on number XXXX. we total the year we this down target down million.

of run in synergies slightly $XX track year our program realize ahead remain million to cost incremental during synergies. to of by next more net million achieve the net continues at middle of $XXX cost XXXX Our our P&L on integration to run target overall we of and rate and plan, in than

Turning to our position. financial

During sale million. closed the Bonneville sales about and a $XXX and on our number redundant remaining $XX stations quarter, assets of we generated gross third on of of the proceeds to for of million, divestiture the

WBEB sale radio used and is those ratings. in in on immediately cash transaction of revenues market million acquire of top our proceeds plus cash million. Beasley in $XX.X This closed by we addition, hand for the to $XX and In strengthens position this on largest for leverage-neutral accretive and Philadelphia competitive adding the both ninth performer terms WXTU in to

meet sales divestitures or from For proceeds $XXX the to sales, our target year, our to are track after-tax asset including redundant full about we $XX our continue of exceed on while million, expect the asset million. of

$XX intermediary QI, hand, about a a factoring September via deposited the billion restricted net which limits cash and consolidating avoid cash. end with we quarter average on the $XX to leverage projects our of the the debt, the debt. two proceeds facilities X.Xx, in the of net our in including cash proceeds of compliance The associated lifetime in net by ended of X.Xx, year. of with paying on taxes this use or of two senior total of the from of our balance of asset-sale cash leverage was quarter recent into anticipation XX, net sales can all of On its and qualified down X.X%. senior As At debt, and hand. of leverage our our its our that was much secured We was We will XXXX property markets. largest million the was retained X.Xx. asset And we leverage had exchanges determining debt redundant a total cash basis, of secured $XXX X.Xx, cash sheet end of $X.X in quarter our of weighted million how entity, million on company cost our in for end at was quarter, order operations in on replace restrictions lapse of next the or first

company the contemplating potential market is monitoring a is its actively structure. of refinancing existing In addition, capital and the

full and expenditures, $XX we as onetime has capital in XQ expected to less we has expenditures XXXX integration-related originally $X of million, Our This planning, QI lifetime now our cash were will to which the outlook million. is million exchange projects us adapt and about been previously year delayed, what $XX we our caused be including to facilities expenditures, one more our than million than $XX expected part expected.

to Operator? of lapse this these cash As noted your the quarter year. fully next we'll end the questions. With first on go restrictions of earlier, by that, will

Operator

Instructions]. [Operator

Research. from Our is first Marci Ryvicker from question Wolfe today

Marci Ryvicker

think, related the revenue couple, EBITDA I the recoup Can can total a you year? on USTN first much quantify loss to for this have next how as to sense Rich. And year? and any you I then

Richard Schmaeling

But of $X targeting fully million to we've year, of maybe the team's written $XX lost And What is isn't half. $XX over in to million our the revenue. million get yet. second about revenue. Yes. million another $X the said to story lost half, next in it's we first And

our about we'll think more than we in XXXX. So double revenue

Marci Ryvicker

Okay. 'XX, next $XX for the I million on this $XX you're million $XX based And to right, into in million first the how we do flowing going year? then your 'XX, comments, half about think got do synergies in of

Richard Schmaeling

Yes.

year, realize that of said we So this we'll $XX P&L in million about cost synergies. net

I by we million Next rate year, midyear. realize said to $XX what of is run than more we'll be at And our $XXX million. expect

of more, But this that's P&L our year, starting year. in million as point, you more course. and We color are progress. next million targeting we'll than And give $XX we $XX more

Marci Ryvicker

should how just down And put we think versus the QX, million it middle? $XX and in Okay. that QX about

Richard Schmaeling

to course more think like it's year. XX-ish realized well, -- be of about quarter the in will half XXXX. Well, per the the be going would throughout that first I it Then XX of

Marci Ryvicker

Okay. of clarify, And to including then want just for your the leverage calculation, synergies? are I you XXX%

Richard Schmaeling

So our cash the leverage we're synergies committed including calculation. net, that amount we compliance leverage and as to of much calculation, remaining our how can limit we're in unrealized under

Marci Ryvicker

then station? And really David. give being what's you data just going versus really at that focus as on been any growth for tells and The for turnaround there the revenue easy us true us a CBS. a I comps on Okay. exactly one Is can there have has CBS the turnaround

David Field

category there lot this one, number about, on more space, that doubling. are than Well, products mentioned a consumer the that things we've I of call, So talked right? and

about we highly believe in One fact has space and broader opportunity gain for to long of is we've a landscape. the an the share the talked is things time undervalued, the that advertising radio

with as already in products of more much They attribution. of analytics you're and is also data which sign that starting the new invest So audio about to 'XX, you beginning new that But which like in us make players the I look some evangelism of the terms acceleration growing market. obviously these we're going the Entercom. the quarter such in digital in and in of and think doubled. now category, area they're very that and seeing telling how client iHeart feel and they I excited telling We're we're obviously doing. network category, that I an offering, to are this rapidly national the efficacy has we're others. think playing now are and in I And to something that's fourth seeing it's scale, kinds space things of that's that. mentioned medium think And it's very national we're about, to so than that, And on, market. of because companies behalf playing need about the and one think a Entercom now in it on in hearing that acceleration this that gets growing markets RFPs our we development and team what right? -- important

tangibly lot are on So going us value believe, for there a are as and into things drivers we important that, beyond. and XXXX of that we go adding are

Operator

Watts is Aaron Deutsche Our question from from next Bank.

Aaron Watts

overall speak a to the those dovetail towards the possibility growth your fourth to to here moving both also traction and in that can going get from think on this you've of you that of maintain you year the year. that know XXXX? just can make like lot kind can the quarter. answer positive things Is you would growth had Do had maybe specifically, Entercom and But industry, that David, that's you into it improvements it happen? industry that I I you've this forward. maintain just negative momentum get I going some of gave. sense I made kind sounds mean,

David Field

manifest industry I half. my faster start. we I happen is question, how a repeat a factors And to lot lots but a that or what points looking to happen there the themselves product first undervalued reassessed Marci's we radio we're line in I against can some to to know that, I experience consumer execute point has renaissance It's real just quarter getting that in we've answered potential pointing at. our of XXXX think -- fourth absolutely. said So all unimpressive. roughly than that doesn't it's and it in right? in by the got -- a But areas seeds there what and and and but on Obviously, obviously we're right? We there. of don't top other X,XXX advertisers, what different are beyond. story want directions. dime ways, did opportunity that's look, remarks that basis X prove this Yes, that, -- seeing the highly is is is in in got other and We they is political of the out to the not various But

Aaron Watts

emerging have down pricing expected seen competitive you expect do about there And the yet? or a dynamics Or marketplace that whether from in in change to talk little Cumulus bit? any soon, with the you it's bankruptcy, to out iHeart you to Can volume?

David Field

having industry in But bankruptcy the good category to with thing into I be obvious, a to and largest too for place obviously, what's think out coming speak time dynamics. out short just Cumulus and for the it's player to with the healthier knowledge is the not yet. happening third still out of iHeart, of I early got period largest any about state a think a there

Aaron Watts

one, And from cash Rich, a the Okay. for use of those last or the asset now still I know about balance time, Is to your I just down on the I of plan the X pay debt? most sheet proceeds, right and Rich. you talked proceeds some it Great. sales. appreciate sitting to majority think,

Richard Schmaeling

it purposes XXXX will and money first burn of will during Absolutely, have year. state then you that up released spend that yes, the I tied quarter discussed. a $XX is now And QI off next gets as again in fully of I as we and that million and for right that

paying hopefully pay it, are capital cash but rest to -- we cash million refinancing trying up anticipation are that right of of to So to the access. to because market in And of million holding structure. down $XXX considering and the we're now in assessing save $X debt the are and down to isn't debt us available our

Operator

from from Our Davis Securities. Wells Hebert next is Fargo question

Davis Hebert

Rich, I to with want start you.

You what the the just kind refi full wrong. you considering? linked statement But of structure, if could curious that that? are meant capital the entire Just and of Or me, I Is and bonds? is kind what there a of loans got something expect? mentioned refing forgive that curious it equity you by we

Richard Schmaeling

existing No, we touch don't to intend notes. the

our We XX% toward are interested addressing today. floating. floating We're percent position. like more in neutral We'd like to a move

So but of we're the and process are not the going of to touch we at rest the alternatives. currently structure looking the notes, in assessing

Davis Hebert

Okay.

going something a mix or some you'd high-yield that source? capital to So then? fixed look more towards the other market mean balanced Would -- floating

Richard Schmaeling

That's the equity. assessing mention, not transactions We're an in possibility. not Yes. markets. at -- did We're raise. are But assessing we the debt you equity looking a

Davis Hebert

helpful. EBITDA XXXX, you And on toward comfortable with mean, secured mentioned, fourth That's do a Okay. your mean, the levels looking the in basis. quarter leverage basis growth covenants? covenant you your versus with a I expect X.Xx, on the pretty I you and feel is

Richard Schmaeling

we that more the of alternatives that thinking accretion. covenant about one clearly That's when Yes. refinance to and gaining about the we're addressing things think

Davis Hebert

clarification then just I if And question, more Okay. one could.

year per said million think you first $XX quarter next half. the synergies in with I $XX of million

equal million? $XX that be does my of is mean half -- million to would the $XX the spread back if across right, year to the math make So

Richard Schmaeling

following looking point now to synergies. that expect on and and anticipating make guidance. we're up of ready more cash leverage, get net updated the as I we our XXXX. give we we're not But at -- $XX basis. know And more going we than somewhat into a be do give holding to of to cost million out I yet said million, sure about further do guidance obviously -- that We're of in to you compliance I Look, that that lot in your we'll leverage. also on just it X.X Davis, $XX right want than anticipation on when think pointed a We're refinancing

With that cash, secured the full X.Xx benefit of of on a basis. levered we're senior all

in now, compliance is stats indicative moment market cash you'll alternatives, assessing a And our see conditions Reality X. of hopefully, the just execute really we're is this that So and got us time we reality. holding permitting, shortly. not and

Davis Hebert

wondered, business helpful could opportunity color. I the Or the is in And I it from for ask some you, of the being billion X from is The a larger you a if perspective? industry. Okay. you secular Audio the perspective Entercom David, that organic $X network debut Really more then, the is Network, it growing mentioned players question. radio it of opportunity and marketplace? of share-gaining And

Richard Schmaeling

to comment one make I'll so and Yes, it pass David.

find names attractive. look BIA the looking market a at of If that's you mid-single because the reach the think network coming back about digit. recent market network they of a most show growing to lot and the the efficiency projections for radio happening space, We space are for national

So up there? you will pick from And, Dave, it growing. is

David Field

your more Clearly, really Yes. weren't or is And year into scale, we're to our ago. as now Davis, right? the a answer where competing coming with we both, own question,

it's able think out, a major that be making also to growth national we has radio it buy and market. easier think So that enables us share to we But advertisers. facilitate pointed Rich to market, as for helps gain within

so it the And -- further into station should this our entrance will accelerate growth.

Davis Hebert

when And there? medium to mass mean, perspective, way network from alternatives other get a an that you it fairly versus I CPM radio at look expensive is out

David Field

an I behind principle, And is to think, But I it think main the simplicity around benefit obviously, advertiser. the the of nuance there's that. that's driver execution.

Richard Schmaeling

of as Entercom that seen brand-safe in content, Network Audio say premium positioned significantly should CPMs market. we've elsewhere environment. what is well-lit in And network we And the the a garnering excess we network are

Operator

Baker Curry next from is our Securities. question And Instructions]. [Operator from Guggenheim

Curry Baker

Could -- quarter. you Any think, I versus help it that? political, guess, up us help help. spot Radio.com? local would you're ex third Is down in the what's driving pacing traffic X% maybe the more X% parse in Is you I of advertising? parse quarter granularity of it fourth us the could sort traditional sort national versus

Richard Schmaeling

radio spot e, right? all above, of accelerated. not National X Curry, is driver. is it's There really, the single

well. evolved -- We're the Our anchor a side. job friends quarter. where become us. to on seeing And longer has improved it's us. and going in Kansas growth nice for it's for that's the a networks boat improved doing point each has sequentially it's are Traffic no Local

is as So facet quarter has facet of we've every business business really or that our third every improved now fourth it gone and in the of essentially quarter. our

Curry Baker

know how was us update consumer category categories? I also pacing auto Are strength. you as it's on And in any a products could other of Okay. the the how fourth And into quarter? called specific And there quarter? out third you

Richard Schmaeling

categories, We in out I bit, information auto little other flattish leading And the I third we remarks quarter, improvement, as quarter. tell the the don't a our Internet down give you as that other the meaningfully. entertainment home pacing. education, that in not text But categories on and touched Sure. just as way third on us covered us led in for think but I far leading was during for will

Curry Baker

the Okay. there. those my are? Could that the you think And in mentioned granular a little are maybe And the quarter. on detail in a remarks little initiatives I more rolling more last products fourth you new and is prepared get what question

Richard Schmaeling

your I'm I'm not question. sorry. I sure followed

Curry Baker

roughly the new into the down rolling down fourth rate some would kind going you being been run products and that think mentioned you've in I versus like OpEx result same-station guys X% at. quarter initiatives X% of

Richard Schmaeling

Okay.

some initiatives spending a on Radio.com. marketing marketing quarter little a behind more fourth the in sequential and So incremental on basis. investment there There's bit is some

and of we the think and events get quarter, -- I running. expense to fourth them in some are that launching then is some couple investment a require new this up So

whole So it's of things list product those various a our across offerings. It's things.

Operator

from Brandon final our is from Osten question today Venator. And

Brandon Osten

questions the some Radio.com stuff. on I've had

So TuneIn you platform? TuneIn radio, all CBS' pulled before guys Entercom's stations that of off available and were on

David Field

Yes.

Brandon Osten

were. They

to got chunk be that's big So their inventory to was What U.S. a that? of pretty of stations. reaction the

David Field

Reaction from whom?

Brandon Osten

From were they that? Like expecting them. stunned by were Or... that? they Or

David Field

that under stations as the that us, to don't strong And I Radio.com for So of And me have we to divulge integration work than could to all It of their a want it actually all the CBS platform. all of little of pill make for made context, to of Well, mentioned XXXX, essentially integral better first course part bit it's our in if earlier, with they for where for as to Brandon, think can, lot and your of local went that brands in us just an And the Radio.com strategy. have CBS I had control of much in and we on certainly question, television I a were the team. those off it expected. second, as became of stations put an that right? put for our logical conversations. transition our to destiny respect appropriate just, cohabitating of imperative expand I be. portals,

established went brands ad, of we followed platforms as really TuneIn. with just disruptive we months well Now then and our highly a that off with of up which independent few later all for digital the a pulling

otherwise So proud you were top earlier, have transformational digital executing in terms we for great stand putting and events. just major two data line heard as back team events well against of But versus was we And been. in might year a Radio.com of helped our really some went I where no points of that what so two our ourselves when position, off disruptive now major through rattling I'm we ago. and our really doubt, where disruptive us

Brandon Osten

so the revenue effectively are your running ads on Radio.com, you model, same FM? the And

David Field

Streams?

Brandon Osten

Or streams Yes. sort different advertisers streams? on grabbing ads same your Like versus running legacy effectively your are are the content? the run you for Radio.com on you what same -- you Radio.com of

David Field

Right.

both there So advertisers streams. digital who just across many addressable advertising advertisers on certainly plenty But are us of have with advertise we who also platforms. those are

Brandon Osten

listening I'm side them I'm I'm I'm -- let's so say, I different side, mean, if getting to But getting a Right. contents. by ad -- different

You're based selling on that, -- you basically have X for ability sell or to slot legacy? it's if two Radio.com the ads

David Field

you addressable the audiences over audiences that not against ability the to market I'll audiences, our remind go we put stations, advertising to our against additional generate sell reflect have We we the to do ratings the ads, up with those that digital when ads broadcast our and stations. streaming our targeted separately streams.

kind albeit, a separate of we two lot audiences, of overlap. so have obviously, with two products separate there's And

Brandon Osten

-- -- which next the thinking have it's cost is because inventory, material revenues several mean, I'm just years. could basically, you're you don't same your -- Yes. very No, may be to the that's up. that cool have from can actually -- go But really I going be within incremental that advertising

you -- Just elaborated rate. a your bit QX run expense on

sequentially. flat QX sequentially, fairly if sequentially. your was So QX here, think suggest expense your lot QX expenses I'm doing looks I'm at but And from your QX awful fairly flat should QX to rate an that basically in fairly this your way forward? -- EBITDA to historical that that going were your also we that operating expense looking in at which would revenues your numbers last run forma run like pro I looking typically? QX year be rate from flat Is the from Is and normally, are

Richard Schmaeling

reason quarter on there but that in decrease be the fourth quarter in year quarter, probably less this year. in third quarter saw will few are of the the X.X% typically, somewhat is you in the things say, I'll why incremental, second this you and fourth a going the are which the it saw X% the decrease instead of

David Field

to you to this and few reporting you morning, Appreciate short a Thanks. in everybody. here look forward Thanks, Bye-bye. we here months. us back joining

Operator

today's conclude does This you. Thank conference.

disconnect at this may You time.

Audacy (AUDAQ) 6 Nov 182018 Q3 Earnings call transcript