Inside Radio Weekly August 6-10, 2018 Inside Story: Why Larry Wilson Stepped Down As Alpha Media Chairman. After founding Alpha Media with six of west-central Missouri. Alpha Media for a change and didn’t elaborate further. stations in 1999 and growing it into one president/CEO Bob Proffitt told Inside “As with every company, there comes of the largest privately held radio groups, Radio in a recent interview that some a time for transitions in the leadership stepping down as chairman is likely portfolio trimming is possible. “It depends positions,” VP of marketing Randi P’Pool bittersweet for Larry Wilson. While neither on how our board and investors feel, but told Inside Radio. “Bob and his team Wilson nor the company has offered a right now we’d like to de-lever a little bit,” have worked closely with Larry for many public explanation for the abrupt change he said. years, and there comes a time when announced last week, sources say it has many factors come into play when the to do with differences of opinion between But as an independent-minded, lifelong founder changes roles.” Wilson and Alpha’s board of directors broadcaster who built the company over the future direction of the company. from scratch, those who know Wilson P’Pool noted that Wilson remains a well say it’s not hard to imagine him board member, adding, “We value his being a reluctant seller and not wanting past contributions and look forward to to let go of some of the radio empire he his continued contributions in the future.” weaved together, especially with the As for selling – or buying – the company potential for the FCC to loosen its radio is keeping its options open. “We will ownership rules. continue to look for good strategic opportunities in the sale and acquisition Another option for Alpha to strengthen its of assets,” she said. balance sheet would be to bring in equity partners and refinance some debt. “The The latest FCC ownership data shows debt clearly needs to be restructured,” a Little Rock-based Stephens Radio is source close to Alpha Media said. “The Alpha’s biggest owner with 27.6% of the company is servicing its debt and isn’t in company’s equity, followed by Endeavour any danger of missing payments, even Capital (19.9%). Wilson owns 4.9% of though the debt is overpriced. When the company. you’re paying too much for something, you want to change that.” Key to Alpha’s future will be who the board elects as chairman at its next meeting Alpha owns 229 stations in 50 markets Said another source, “When the founder and what they agree is the prudent path and is said to be performing well is strong-willed and can be stubborn as a moving forward. operationally. But the Portland, OR- mule and he’s butting heads with some of based broadcaster needs to improve his board members – which include other “To Larry’s great credit, he laid a its balance sheet, according to sources investors – and everyone’s not seeing eye- sustainable foundation for the company close to the company. Specifically Alpha to-eye, there’s going to be some friction.” from the start, which has been enhanced is carrying some “expensive debt” from There had been speculation in recent over the years. We have a sound strategy, its $264 million purchase of Digity Media years that Alpha might consider an a strong bench and are well positioned to in February 2016. S&P Global Ratings IPO, but Wilson closed the door on that carry out his vision for years to come,” lowered the company’s corporate credit possibility in 2016. P’Pool said. rating in May, saying it expected the radio broadcaster’s interest expenses Wilson did not respond to will increase, further limiting its ability to Inside Radio’s requests for generate sufficient cash flow to reduce comment and it’s not known leverage. “We believe the company’s exactly where he stands on capital structure is unsustainable and spinning-off stations. What’s that it will face significant refinancing next for Wilson, 73, is also not risk over the remaining life of its senior clear. He’s been splitting his secured term loan due in early 2022,” time between his homes in S&P said in the May report. Montana and Hawaii in recent years. While Wilson and the board apparently agree that Alpha needs to deleverage, ‘Not Much Will Change’ there is a difference of opinion as to how For its part, Alpha says “not that should be accomplished, according much will change” with Proffitt to sources. One option is to sell off some continuing to run the day-to-day of the company’s markets to pay down operations of the company. As debt. In fact Alpha has already cut a deal to why Wilson stepped down, to sell a trio of stations in an unrated part the company said it was time Page 1 Inside Radio Weekly August 6-10, 2018 With Uptick in Revenue, Townsquare Outlines Clear Strategy. With a crystal clear strategy as it moves forward, Townsquare Media is positioning itself for long-term growth via a four-point plan. Co-CEO Dhruv Prasad outlined the company’s blueprint during its Q2 earnings call. First, he said it is focused on “local first, investing in content and sales execution within our local market footprint in order to drive stable results from our foundational broadcast product offerings.” This includes Townsquare’s acquisition of three radio stations in New Jersey for $17 million from Connoisseur Media at the beginning of third quarter. Prasad said the second objective is to “reduce complexity and the volatility in our business,” which it has accomplished by reviewing and reorganizing live events and its national digital businesses. This was highlighted by the Field: With Q2 Behind It, Entercom Is ‘Turning The Corner.’ divestiture in May of North American Midway Entertainment With a second straight quarter of negative growth now behind (NAME) after three years. Finally, Townsquare sees what is it, Entercom CEO David Field’s message to investors is the perhaps its greatest growth coming from its digital products and company is “turning the corner” and is “well positioned for solutions platforms Townsquare Interactive and Townsquare sustainable revenue growth” in the second half of the year. Ignite. In Q2, digital marketing solutions business Interactive While Entercom still has an uphill climb to grow topline increased revenue to $11.7 million, representing revenue revenue, the brunt of the hard work of integrating the former growth of 17% compared to 2017. Wilson said that it added CBS Radio stations is now in the rearview mirror and Field is 850 net subscribers for its digital services, markedly increasing forecasting “significant” revenue growth during the back half from the previous four quarters where it averaged 400 net adds. of 2018. “Much of the heavy lifting in terms of integration from The total number of subscribers is now 13,650. Net revenue for the merger is behind us, and our pacings are accelerating as Townsquare in Q2 increased $2.3 million, or 1.9%, compared we begin to gain traction locally and across several of our key to 2017. Excluding political revenue, the figure increased to growth drivers,” Field said during the company’s second quarter $118.3 million. earnings call Wednesday. Wall Street apparently liked what it heard. Investors rallied behind Entercom, bidding its stock iHeartRadio Surpasses 120 Million Registered Users. price up 20% on nearly double than normal volume to close iHeartRadio has surpassed 120 million registered users, with the at $8.35 on Wednesday. The company reported progress in addition of some 10 million listeners over the past few months. turning around the legacy CBS Radio stations, which Field said Now available on 250 platforms—from gaming devices to in- pacing roughly in line with the legacy Entercom stations. Half of home and auto—iHeartRadio is also the No. 1 commercial radio six major format changes are showing positive revenue growth, podcaster in the U.S, with 20,000 podcasts across 20 different led by classic hip-hop “104.3 Jams” WBMX Chicago, which unique categories, including 750 iHeartRadio original podcasts. has doubled its billings from one year ago.While third quarter The iHeartRadio blog points to audience podcast favorites is pacing down 2% (excluding expected losses from the United “The Ben and Ashley I. Almost Famous Podcast,” “Not for Lazy States Traffic Network debacle), that’s a big step-up from Q2’s Moms” and “Business Unusual with Barbara Corcoran”; while 8% slide. And fourth quarter is pacing up 3% on an unadjusted the company also announced this month new feature, “Your basis. Field identified several factors driving the second half Weekly Mixtape,” a custom-made playlist based on the listening turnaround. Local business, which dragged Entercom down in habits of registered users. It offers users 30 to 70 songs and is the first half, is “absolutely improving,” including some of the updated each Monday. According to the blog, iHeartRadio has large legacy CBS markets that were laggards in the first half. also added new music streaming features, offering listeners The company is also making early progress from “scale-based integrations with Amazon’s Echo Dot Kids Edition, Southwest initiatives” such as the new Entercom Audio Network and the Airlines inflight entertainment portal and more. relaunched Radio.com streaming app. Scripps Sells Boise and Tucson Clusters To Lotus After Q2 Drop, Urban One Expects Strong End Of Year. For $8 Million. Urban One saw net revenue drop 3.5% in its radio segment The E.W.