Entercom Communication Corp., a radio-station chain based in Bala Cynwd, said today its net income last quarter swung to a loss from a year earlier.
While revenues rose a record 10 percent, Entercom reported a 14 percent jump in expenses due partly to expansion investments. Per-share earnings ended the quarter at a loss of 1 cent, down from net per-share earnings of 19 cents a year earlier.
In a statement, David J. Field, president and chief executive office, blamed "a weaker March." He also emphasized that the company took on big expenses during the quarter, including launching a new station in the San Francisco market and pouring money into Internet and other business expansion.
"While we see overall flat revenue trends in the second quarter, we are experiencing substantial growth across many of our markets, offset by near-term investments in our newer markets," Field was quoted as saying in a company statement.
But Wall Street was unmoved. Shares in Entercom fell nearly 2.5 percent, or 69 cents, to $27.51 in morning trading on the New York Stock Exchange.
The company said net revenues rose to $100 million. But that was outstripped by a 14 percent jump in operating expenses, to $67.9 million, between the quarters.
Same-station net revenue rose just 1 percent, to $90.7 million. It also was outstripped by a 2 percent increase in expenses to $60.7 million.
Entercom said same-station operating income dipped 2 percent between the periods, to $30 million.
Despite the loss, the company's board also today approved a quarterly dividend of 38 cents per share and extended a share repurchase program. It also disclosed its estimated effective annual tax for this year will rise to 41.7 percent.