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FRIDAY, NOVEMBER 6, 2015

Entercom, In Wake of Buy, Is Up 15%. Entercom Communications’ third-quarter call with investors had a positive spin in a veritable whirlpool of radio group earnings reports Thursday. With net revenues increasing 15% to $114.7 million, president & CEO David Field touted a “healthy balance sheet” in this first report since the July acquisition of Lincoln Financial Media and classic rock “The Sound” KSWD Los Angeles. The Lincoln purchase and swap with Bonneville gave the nation’s fourth-largest radio group “every major market on the West Coast,” according to the company’s chief. “We had an outstanding third quarter, and are well positioned for continued strong performance in 2016 and beyond,” Field said in his opening statement, emphasizing strong top- and bottom-line growth, double-digit growth and free cash flow and adjusted income per share. The two deals gained Entercom stations in L.A., Atlanta, Miami, San Diego and Denver. “Today, almost four months later,” Field said, “I can report that our integration efforts have gone seamlessly and we see abundant opportunities for growth across these new properties.” The current growth was primarily driven by the Lincoln properties, Field said, adding that “what was far more meaningful was the organic growth we achieved during the quarter” across Entercom’s 125 stations in 27 markets. Excluding the new properties, local ad revenue gained 3%—and excluding political revenues, it was up 4%. Following the trend for most radio groups, national ad sales were “down slightly.” Field noted that its strongest revenue markets in Q3 were Boston, Kansas City, Seattle and Portland, while its leading ad categories were auto, health & medical, home furnishings and professional services. The Buys Have It—Field talks about whether Entercom is still in the market for acquisitions; go to InsideRadio.com.

Entercom Loves ‘The Sound’ of Retooled Assets. During Entercom Communications’ rosy third-quarter call with investors Thursday, president & CEO David Field devoted a good deal of time to discussing the advantages of the radio group’s July acquisition of Lincoln Financial Media —adding stations in Atlanta, Miami and San Diego—as well as “The Sound” KSWD- FM Los Angeles, in a trade-off with Bonneville. “We acquired a strong footprint of quality brands, significant development opportunity and margins well below industry standards,” he said. “Four months in, we could not be happier with our progress. The integration has been seamless and we are ahead of schedule.” In mid-July, Entercom placed new market managers at each station, which Field says has ultimately doubled the margins into the mid-20s at the end of the third quarter. By the end of fourth-quarter, he predicts margins approaching or exceeding 40%. “This will strengthen the stations and significantly enhance their effectiveness as they compete for audiences and revenues.” Regarding its new L.A. classic rocker, Field alluded to KSWD’s pedigree as a highly established station in early 2015, “but its revenue share trailed ratings by a significant margin. We continue to expect strong cash flow and revenue growth in the quarters ahead.”

At Cumulus, Berner Lays Out Growth Plan. Acknowledging the substantial challenges the company faces, new Cumulus Media CEO Mary Berner yesterday outlined in broad NEWS INSIDE >> strokes her “still developing plan” to turn the company around by shifting its focus from expansion to execution. She promised a “relentless focus on the crucial areas On The Inside with... where improvement can materially change the company’s trajectory.” After visiting 16 JIM THOMPSON radio markets, 8 network locations, the Nash campus and Atlanta headquarters, the

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com FRIDAY, NOVEMBER 6, 2015 publishing exec-turned-broadcaster identified three “mission critical” goals—increase the ratings; fix the “large number” of executional issues that hinder productivity, especially in ad sales; and transform the company’s culture. To shore up ratings, Cumulus will realign its programming organizational structure. The previous approach “hindered collaboration” between corporate and local programmers, often resulting in “detrimental outcomes” driven by a lack of collaboration, Berner said. The new system will “take advantage of local input and expertise, particularly in major markets.” The company isn’t decentralizing programming, but rather implementing changes that will result in “faster and better informed decision-making.” To increase ad sales, Cumulus will streamline its customer relationship management system, which Berner says tied up sellers with “excessive documentation that was not producing benefits for them, their managers and assuredly not the top line.” After soliciting input from 115 frontline sellers, the system will be changed to make it more effective and free up time for sellers to spend more time in front of more advertisers. Culture Shift—Berner plans to transform the way the company operates; read more at InsideRadio.com.

Berner Offers Cost-Neutral Plan For Cumulus. During the Cumulus Media Q3 earnings call, CEO Mary Berner renewed her promise to turn around the struggling broadcast giant without making any significant new investments. In fact, she told investors she plans to execute all the changes in a still-unfolding plan “in a cost neutral way at worst.” Claiming that Cumulus has lost more than a dollar of revenue for every dollar of expense reduction during the past four years, she pledged to focus on “intelligently managing the cost structure.” That involves holding off on developing a holistic digital strategy until Cumulus is rowing in the right direction on core business fundamentals. Cumulus revenue declined 7.8% to $289.4 million during the third quarter as broadcast ad revenue slipped 4.3% to $275.3 million. Local spot was flat, national spot declined 10.9% and network fell 9.9%, although its Westwood One network is seeing sequential revenue improvement. Most significantly, Cumulus said it wrote down $565.6 million of the total carrying value of its FCC licensees in the quarter. Chief financial officer J.P. Hannan attributed the impairment charge to the original purchase price and subsequent underperformance of the large market Citadel stations Cumulus acquired in 2011 and the underperformance of Westwood One vs. the company’s original expectations. “The impairment charge has no impact on cash or cash tax forecasts or impact on anything in any credited facility we have,” Hannon said. The Q3 results and the write-down lowered Cumulus stock 18.6% in aftermarket hours trading after closing down 8.1% yesterday at 43 cents. Schedule for Turnaround—Cumulus needs to turn things around to stay in Nasdaq’s good graces; go to InsideRadio.com.

For iHeart, It’s About Bringing New Bucks In. Working to close the gap between radio’s audience share and its much smaller portion of advertising spend, iHeartMedia says it is focusing less on stealing share from competing radio broadcasters and more on luring new dollars to the medium. “Just fighting for share of radio dollars is no longer a winning strategy,” said Rich Bressler, president, COO & CFO, during the company’s third-quarter results call. “Long-term success will come from bringing new revenue into the sector that was not earmarked for radio.” The company is making progress on that front by delivering what he called “a truly differentiated value proposition for advertisers,” which has helped it outperform the industry as a whole—“even in a tough radio environment.” Helping make the case to advertisers and agencies are the latest sales effectiveness studies Nielsen released in October, which showed significant ROI for radio campaigns across four retail categories. Bressler also played up recent studies that contrasted a declining TV audience with radio’s position as America’s top reach medium. “We believe that our platform and our partners stand to benefit from the key consumer trend of spending more time out of the house,” he said. At the same time, the lines between what constitutes local, regional and national advertising continue to blur across disciplines, he said, from spot advertising to digital and events. It’s a trend Bressler believes iHeart is well positioned to benefit from, because it offers advertising solutions across the board. For advertisers and agencies, “it doesn’t matter where it’s bought or how it’s bought or what you call it, it’s about return on investment,” he said.

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com FRIDAY, NOVEMBER 6, 2015 iHeart Rides Events To Q3 Revenue Rise. Live events have been an important embedded part of the sales strategy at iHeartMedia, something that paid dividends in the third quarter, as announced during yesterday’s earnings call. Sponsorship dollars from September’s iHeartRadio Music Festival, along with barter and trade revenue and digital billings, offset fewer political ad dollars, lower core broadcast radio revenue and lost rent from radio towers the company sold during the second quarter. That helped grow revenue 2%, to $846.8 million in the third quarter compared to the same period last year. “Events have a positive benefit on advertiser and consumer relationships and provide great promotion and brand building opportunities for our stations,” Rich Bressler, president, COO & CFO, told investors and analysts. “Leveraging these events is a significant differentiator from a sales, branding and promotion perspective and events continue to be a key revenue driver for us.” And their number continues to grow. The Jingle Ball Tour will hit 11 cities this year, up from nine in 2014, with Capitol One signing up as its first national title sponsor, along with Allstate, Macy’s, Verizon and other sponsors in various local markets. The company’s broadcast radio platform has also grown, with Bressler pointing to a 10% year-over-year ratings increase in September. It claims the top urban stations in radio’s three largest markets while its country radio platform now encompasses 140 stations reaching 97 million listeners per month. On the digital front, iHeartRadio has surpassed 75 million registered users with total listening hours up 21% in the quarter and mobile accounting for nearly two-thirds of that listening. Programmatic Gains—Read how iHeart is able to tap into data to increase sales at InsideRadio.com.

Entravision Likes Look Of Audio Growth Curve. Radio received top billing during yesterday’s celebratory Entravision earnings call. “Our third-quarter results reflect the continued strong performance of our audio segment, further expansion of our digital revenues as well as improved results at our television group,” began Walter Ulloa, chairman and CEO. Ulloa’s cheery report was driven by consolidated Q3 revenues hitting $69.3 million, up 11% year-over-year, highlighted by “our audio segment and audio network business [that] continued to outperform the broader industry, as well as our Spanish-language peers,” to the tune of $20.9 million, and 15% growth in Q3, compared to last year, with local up 10% and national up “a very healthy 27%.” Ulloa also announced that contractual agreements were renewed with audio stars Alex Lucas and Oswaldo Diaz, extending through 2019, meaning that the three top Spanish-language talents in the country—Eduardo ‘Piolín’ Sotelo being the third—will remain on Entravision for the foreseeable future. Plus, a new three-year deal with the NFL gives the company the rights to broadcast NFL games in Spanish on Sunday nights; the agreement includes those rights for Super Bowl LI in 2017. Ulloa and company executive VP and CFO Chris Young also cited the growth in digital, driven by Pulpo, which continues to be the No. 1 digital platform to reach Latinos in the U.S. according to comScore. Looking ahead, audio in Q4 is pacing in the low- to mid-single digits, despite the impact of $1.1 million of political revenue in the prior year. “Audio seems to be firing on all cylinders,” said Young. “The content is really working for us…we feel sequentially better than we did at this point last quarter with how the business is trending.” Added Ulloa, “We think the audio strength will continue into 2016.”

Radio One Pins Hopes On Political. Patience is never an easy concept in earnings calls, but execs at Radio One have reasons to be cheerful about its radio business in 2016. On the flip side of declines in third-

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com FRIDAY, NOVEMBER 6, 2015 quarter revenue that are set to continue into the fourth, the company sees Q1 2016 rising, based on an expected injection of political advertising. Those fresh ad dollars are set to pour into markets as candidates and organizations target Radio One’s African-American listeners. Currently, ratings are rebounding in 11 of 15 markets, with the remaining markets flat, according to Radio One CEO Alfred Liggins. “We’ve been successfully improving our ratings over the quarter, up about 15%, and we expect that monetization to start to come through in Q1,” Liggins said Thursday on a conference call with investors and analysts. Radio One recently promoted David Kantor, formerly president of its Reach Media syndication unit, to Radio Segment CEO overseeing its local stations, national business and syndication. That move, Liggins said, “is going to position us to be more effective and operate more cost-efficiently.” Turning around the radio business has been Radio One’s “top priority and focus,” Liggins said. He noted several key programming moves are beginning to pay off in the ratings. In Washington DC, for instance, Radio One landed popular host Donnie Simpson for urban AC “Majic 102.3” WMMJ and Liggins says ratings are up 14%, while in Charlotte it launched urban “92.7 The Block” WQNC. “We believe that is going to increase ratings significantly there and give us some more inventory to sell” Liggins added. Political Futures—Liggins offers his take on how many millions the company will bring in through campaign ads; go to InsideRadio.com.

Radio One Revenues Up, Fueled By TV. While Radio One saw overall revenue grow in the third quarter, the company’s radio division hit some comparative speed bumps. Radio One’s revenue was up 3.3% to $115.9 million for Q3 2015, compared to the same period in 2014. Those gains were fueled by greater advertising demand and an increase in affiliate revenue for Radio One’s cable TV networks. For its part, the radio division saw revenue drop 6.6% in the third quarter, compared to average losses of 2.2% in markets where Radio One operates stations. Among its markets, Philadelphia, Dallas and St. Louis are showing revenue growth, according to chief financial officer Peter Thompson, but losses in Houston, Washington. DC, Atlanta and Detroit offset those pluses. In the third quarter, Thompson said, local ad revenue dropped 9.9% and national ad revenue fell 3.8%. Among categories, ad revenue was up 20% in services and up 3% in automotive. Several others, however, showed red lines in the ledger, including financial services (-24%), food and beverage (-19%), telecom (-12%) and retail (-7%). Radio One CEO Alfred Liggins said he anticipates a soft Q4 for advertising revenue. With less than two months left in 2015, Radio One is turning its sights to next year. Liggins emphasized that early 2016 will be the point when the company’s radio assets show signs of improvement, particularly after a weak Q1 2015, when revenue dropped 8%. Said Liggins: “We think it is actually going to be the first opportunity for us as we lap back and start to show positive growth again in the radio business.”

NAME Adds To Townsquare Q3 Recognition. In September, Townsquare Media, which owns 309 radio stations in mostly small and mid-sized markets, acquired North American Midway Entertainment (NAME), which attracts 15 million people annually to 150 fairs across the U.S. and Canada. The investment is already starting to bear fruit, as chairman and CEO Steven Price indicated during the company’s third-quarter earnings report. “There are many benefits to the combined company, including the ability to use our megaphone—our ability to speak to our on-air and online audience—to drive awareness and attendance at NAME’s fairs,” Price said Thursday on a conference call with analysts and investors. NAME is already having an impact on Townsquare’s bottom line. In part due to NAME events in the third quarter, Townsquare posted a 4.2% pro forma increase in net revenue to $166.0 million for the period. Townsquare already hosts 650 events each year, including festivals and expos for attendees and for families, and it supports them via its stations. Company research, Price added, shows consumers will drive up to two hours to attend an event. About half of NAME’s events are located within 100 miles of Townsquare markets, and “we have proven we have the ability to drive awareness and attendance within such a radius,” Price said. The live events division, which includes NAME, recorded $38.3 million in revenue, a 376% increase from a year ago. Good Timing—Q3 being the busy events season served Townsquare well; read about it at InsideRadio.com.

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[email protected] | 800.275.2840 PG 4 On the Inside with... insideradio.com FRIDAY, NOVEMBER 6, 2015

On The Inside With... Jim Thompson

The Broadcasters Foundation IR: How do you get the word of America provides monetary out to people that might grants to radio and TV need help? broadcasters struggling with We have help from publications, illness, injury, advanced age or industry newsletters and other life-altering events. Since magazines. We ask state joining in 2009, foundation Broadcasters Associations to president and industry vet Jim let their constituents know we Thompson leads its aggressive are here to help. We’re coming campaign to increase awareness, up on the gift-giving season donations and gift giving. and there will be ads and Thompson tells Inside Radio articles. We ask the people on how the organization serves the our board to help too, and our neediest broadcasters and their board alone probably covers families. more than half the country.

IR: For those unfamiliar, what is the foundation’s IR: Has demand increased, and are you mission? communicating more effectively now? We are here to help people in the TV or radio business We’ve really pushed our outreach. In just three years, who are unable to work and support themselves, usually we’ve doubled the money we gave out. This is like a sales due to an illness, a stroke, disease or old age. We have call—You don’t just call once, you have to continue to tell helped thousands of broadcasters and their families. them our story. No one thinks it is going to affect them. Many of them would [otherwise] lose their homes. In No one thinks about us until after the fact. And demand 2000, the foundation gave out about $60,000 and, last has increased too. Some of the people we help, I’ve year, we gave out about $850,000. Two of the people known personally for years. I know someone who had we’re currently helping are featured in a video on our a lot of money, got sick, and was not able to continue to website (broadcastersfoundation.org). One was a TV work and make money. They spent all the money they photojournalist down South who was in a car accident had to stay alive, and then they lost everything when the on his way to do a story and he is now paralyzed and economy turned bad in 2008-09. Now, they are destitute in a wheelchair. The other is the widow of a radio and we help them. It can happen to anyone. You’d be on-air announcer and program director who died shocked at some of the people in this position. We have of cancer in his 30s; they have four kids, and we’ve one person who was a no. 1 afternoon drive-time host been helping them ever since. We average about 60 in a top 10 market. Sometimes fate takes a turn. recipients per month. IR: How do you raise funds for the Foundation? IR: What kind of assistance does the Foundation We run several big fundraising events. In September, provide? we had a celebrity golf tournament and it was a huge Typically, the most we give out is $1,500 a month. Need success. We raised close to $250,000, and any time is based on the income you do have and how much it you raise over $200,000, that is a lot of money for us. costs to live your basic life. We will try to make up the In the first quarter, we have the Golden Mike Awards, difference up to $1,500. Once you apply, we continue to and we honor someone in the industry. At the NAB in give it to you monthly, and each year you must renew. Las Vegas, we have the Phillip Lombardo Charity Golf It continues for life, or increases in some cases. We Tournament. Most of our support comes from within have a very big vetting process. We also have $1,000 the business. Even when things are tough and people emergency grants available. Recently, we have been are cutting back, we still have stations, companies and giving out grants to broadcasters affected by the floods individuals supporting us. and rains in South Carolina, particularly in Columbia. We provide a one-time, emergency grant to keep them Growth Curve — Thompson talks about plans to grow on their feet while they’re sorting things out. the foundation, only at InsideRadio.com

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[email protected] | 800.275.2840 PG 6 CLASSIFIEDS insideradio.com FRIDAY, NOVEMBER 6, 2015 GENERAL SALES MARKET MANAGER MANAGER — ILLINOIS One of radio’s fastest growing companies has two great Peoria, IL is a great community opportunities to manage its market clusters in the offering a wonderful quality of northeastern and southeastern United States. life. Advanced Media Partners, LLC is the only locally owned A minimum of 8-10 years of sales management or general and operated media outlet in the management experience. You should embrace the challenge market, and we are seeking a of recruiting, building and training a superior sales force that dynamic leader for our sales team creates ideas using all broadcast, digital and NTR assets, representing our four station cluster. If you’re tired of looking not just spots and dots. You understand the importance of over your shoulder wondering managing collections, sales and operations. Moreover you about corporate’s next round will be responsible for maintaining superior programming of cost cutting, and if you really and engineering while being integrally involved in the want to make a difference in the community. community in which you live, this may be the opportunity you’re Our company is owned by life-long broadcasters who want to looking for. We are a broadcasting give you the opportunity to grow your career as we continue company owned by broadcasters. to grow our well -financed company. Our company is old Management experience within school. We believe in supporting management to achieve the radio industry required. goals. Bonus plans, benefits package and relocation Teach, train, coach, and lead — expenses included. EOE. if you have the tools, we want to talk to you. Compensation based on experience, track record, and Interested? Send resume in confidence to: skill set. [email protected]

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Successful private radio group has an opening for an aggressive, goal oriented and knowledgeable General Manager for a successful radio cluster located in Honolulu. If you have a winning attitude, proven track record of growing revenue, a passion for radio sales excellence and a desire to be a partner on a winning team, then this is the opportunity for you.

Three plus years of radio general manager experience is required. Apply to: employment@ This is a rare opportunity with tremendous growth potential. ampillinois.com with cover letter and resume. Qualified candidates, send info to: [email protected] All inquiries held in confidence. Advanced Media Partners, LLC is an equal opportunity employer.

It is the policy of Summitmedia LLC to provide equal employment opportunity to all qualified individuals without regard to their race, color, religion, national origin, age, or sex in all personnel actions including recruitment, evaluation, selection, promotion, compensation, training, and termination. Equal Opportunity Employer.

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