Cumulus Q1 Net Revenue Down 7.2%
April 30, 2015 at 3:47 PM (PT)
CUMULUS MEDIA has reported Q1 2015 Net revenue of $271.1 million, which was down 7.2% from Q1 2014. Broadcast revenue of $251.2 million was down 7% to $702,000. Broadcast revenue of $251.2 million was down 7%, Digital advertising fell 16.4% to 8.1 million, and Political advertising dropped 68% to $702,000. Adjusted EBITDA fell 24% to $44.7 million.
The main problem in Broadcast revenue’s decline stemmed from a 13% drop in Network advertising, compared to 3.6% drop in Local and 2.4% drop in National advertising.
In its quarterly conference call, CEO LEW DICKEY attributed the showing to a "continuation of Q4’s choppy environment in the form of a tepid economy. The Revenue side was generally consistent across the three months, although MARCH was very anemic, on the low end of our pacing range.”
“Radio markets were down 3%, driven by 4% declines in both Local and National, with digital grow of 21% slightly offsetting that.”
WESTWOOD ONE revenue was down 14%.
Despite the lesser revenue numbers, they slightly beat WALL STREET expectations (except for EBITDA), which could help CUMULUS' stock share, which is down 46% YTD.
DICKEY also brought up the growth of its NASH arm -- syndication, NASH stations, its Classic Country format and the NASH Icon label -- highlighted by the news that sales of REBA MCENTIRE's new album alone will make the NASH Icon label profitable this year. The company also said that it has a buyer chosen for the 75 acres of land under the towers of News-Talk WMAL-A/WASHINGTON and that the sale of the land under News-Talk KABC-A and Classic Rock KLOS/LOS ANGELES' studios and AM towers is expected to close in early 2016.