Cumulus Q3 Revenues Up Due To Citadel Addition, Down Pro Forma
November 5, 2012 at 6:19 AM (PT)
CUMULUS MEDIA third quarter pro forma net revenues fell 4.5% to $276,166,000, with adjusted EBITDA up 12.1% to $106,628,000; overall revenues jumped 120.7% to $275,350,000, based on the addition of the CITADEL stations and swap of stations with TOWNSQUARE MEDIA, plus a $4.6 million increase in political advertising. Revenue growth was partially offset by the effects of format changes in some markets, general ad market downward trends, and reduced use of trade advertising on acquired stations. Net income, including the CITADEL addition, fell 5.9% to $56,045,000.
Chairman/CEO LEW DICKEY said, "This quarter marked the first anniversary of our transformative merger. We are pleased to report that the integration is largely complete, and our identified synergies were materially exceeded six months ahead of schedule. We are making excellent progress in the turnaround of 10 underperforming stations which account for 100% of our revenue decline, and expect them to post positive revenue growth in 2013."
On the company's conference call, DICKEY said that newly-acquired WFME/NEW YORK will serve as the flagship for one of the company's strategic content initiatives. He also said that the ten former CITADEL stations that have been a drag on revenue are expected to turn positive after first quarter 2013 as the effect of lost sports rights (LOS ANGELES DODGERS AND BUFFALO BILLS) and format adjustments in several markets move further into the past.