Was it just three months ago that Entercom Communications Corp. had investors in a tizzy with sagging first quarter earnings, causing the company’s stock to hit it lowest point in more than five years?

The Bala Cynwyd-based radio station operator saw a reversal of fortune after reporting second quarter earnings on Wednesday morning. Despite an 8 percent revenue decline (including CBS stations) from the same period of 2017, investors cheered the performance that sent Entercom (NYSE: ETM) back into the black after two quarters of losing money. The company’s shares increased by 17 percent in the first 20 minutes of trading and spiking by 20 percent at market close, writes Jeff Blumental in the Philadelphia Business Journal.

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Holding down Entercom’s performance was its connection with United States Traffic Network, its former data partner.

Malvern, Pa.-based USTN filed a lawsuit last month against Entercom, claiming it entered negotiations to buy USTN only to walk away at the last second. The lawsuit also claims Entercom was planning to develop a direct competitor based on information gleaned during the due diligence period. Entercom called the lawsuit is “entirely baseless, frivolous and frankly insulting,” with CEO David Field telling employees in a recent internal memo that USTN owes it million of dollars.

Field also has cited a soft advertising environment as a challenge but expects that to pick up in the second half of 2018 — especially after Labor Day when political advertising leading up to November’s midterm elections take hold.

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