Entercom (ETM) disappointed Wall Street again and fell over 10% aftermarket when it slashed its dividend from $0.09 per quarter to just $0.02 per quarter after reporting a "disappointing" quarter. We were not disappointed, however, we were applauding because this is an extremely smart move. We think ETM management will be able to drive significantly more shareholder value creation with this move, and we continue to hold the stock for the long run.
Impact
Cutting this dividend will save around $30mil in 2019 and around $40mil per year thereafter. Although it may seem