Cumulus Q1 Revenues Down 1.3%
May 7, 2013 at 6:12 AM (PT)
CUMULUS MEDIA has reported that Net revenues for the three months ended MARCH 31st, 2013 decreased $3.1 million, or 1.3%, to $232.9 million, compared to $236.0 million for the three months ended MARCH 31st, 2012. This decrease was attributable to lower political revenues and general lower advertising spending in some of our markets.
Direct operating expenses for the three months ended MARCH 31st, 2013 increased $10.6 million, or 6.9%, to $164.2 million, compared to $153.6 million for the three months ended MARCH 31, 2012. The company noted, "The increase was primarily attributable to a $1.0 million increase in sales salaries, a $1.6 million increase in ARBITRON fees and a $4.9 million increase in expense at our network division as we invest in various content initiatives."
CUMULUS also reported, "Corporate general and administrative expenses, including stock-based compensation expense, for the three months ended MARCH 31st, 2013 decreased $2.8 million, or 16.9%, to $13.9 million, compared to $16.7 million for the three months ended MARCH 31, 2012. The decrease was primarily due to a decrease in stock-based compensation expense of $4.3 million, partially offset by a $1.2 million increase in acquisition related costs. Acquisition related costs for the three months ended March 31, 2013 included exit costs associated with a lease for vacated CITADEL office space."
Chairman/CEO LEW DICKEY stated, "With the integration and turnaround of the CITADEL assets now largely behind us, we are investing in several key content initiatives to drive growth beginning in the back half of this year and accelerating into 2014. We will post positive year-to-date revenue growth through MAY and expect our investments in CBS SPORTS RADIO, Traffic, NASH and SWEETJACK to contribute meaningfully to our cash flow beginning in Q4 of this year."
CUMULUS stock closed at $3.66 YESTERDAY (5/6). Follow CUMULUS on WALL STREET here.
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