February 26, 2007
Entercom profit falls on legal settlement
By Christina Davis
Radio broadcasting company Entercom Communications Corp., which owns WVEI 1440AM in Worcester, said that its fourth-quarter profit fell by half on a hefty legal settlement charge over sponsorship identification practices.
The Philadelphia-area company earned $6.9 million, or 17 cents per share, compared with a profit of $15.8 million, or 35 cents per share, during the same period a year prior. Revenue rose to $118.5 million from $103.7 million.
During the quarter, the company saw an $8.3 million charge relating to a settlement with the New York State Attorney General's office over sponsorship identification practices. Part of that charge also included a reserve in relation to the Federal Communication Commission's investigation into sponsorship identification practices at several media companies.
The New York settlement dealt with the issue of "payola," or gifts given by record companies in exchange for air play. That settlement cost just under $4.3 million.
For the year, Entercom earned $48 million, or $1.19 per share, compared with a profit of $78.4 million, or $1.70 per share, in 2005. Revenue rose to $440.5 million from $432.5 million. (AP)
The Philadelphia-area company earned $6.9 million, or 17 cents per share, compared with a profit of $15.8 million, or 35 cents per share, during the same period a year prior. Revenue rose to $118.5 million from $103.7 million.
During the quarter, the company saw an $8.3 million charge relating to a settlement with the New York State Attorney General's office over sponsorship identification practices. Part of that charge also included a reserve in relation to the Federal Communication Commission's investigation into sponsorship identification practices at several media companies.
The New York settlement dealt with the issue of "payola," or gifts given by record companies in exchange for air play. That settlement cost just under $4.3 million.
For the year, Entercom earned $48 million, or $1.19 per share, compared with a profit of $78.4 million, or $1.70 per share, in 2005. Revenue rose to $440.5 million from $432.5 million. (AP)
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