Entercom Update: Strong Free Cash Flow, Attractive Valuation

About: Entercom Communications Corp. (ETM)
by: Kippington Capital Management
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Kippington Capital Management
Value, long-term horizon, arbitrage, special situations

Entercom holds a dominant position in the terrestrial radio business, and radio is unlikely to go anywhere soon.

The company is led by the founder’s son, a capable owner-operator who has grown the company with a disciplined acquisition strategy and long-term mindset.

Entercom was generating significant free cash flow from its legacy stations pre-CBS merger and will most likely bring acquired CBS stations up to same speed.

Shares have fallen substantially post-CBS merger over concerns regarding the profitability of CBS stations, the company's debt load, and overall opinion of the terrestrial radio business.

The Second-Largest Radio Business

Entercom (ETM) was founded in 1968 by Joseph Field with the belief that FM radio, not AM, would one day dominate the airwaves. The company grew through acquisitions and