Cumulus Financials Hurt By Weak Ad Market
November 6, 2008 at 2:34 PM (PT)
CUMULUS MEDIA has reported financial results for the three and nine months ended SEPTEMBER 30th, 2008.
Net revenues for the third quarter decreased from $84.2 million to $80.0 million, a decrease of 5.0% versus the third quarter of 2007, primarily due to a general weak demand for advertising. Cash revenues for the third quarter decreased from $79.8 million to $76.5 million, a decrease of 4.1% and barter revenue decreased $1.0 million or 21.6%.
Station operating expenses decreased from $52.2 million to $50.8 million, a decrease of 2.8% from the third quarter of 2007.
Station operating income (defined as operating income before LMA fees, depreciation and amortization, non-cash stock compensation, impairment charge, terminated transaction expense and corporate general and administrative expenses) decreased from $31.9 million to $29.2 million, a decrease of 8.7% from the third quarter of 2007.
On a pro forma basis, which excludes the results of the Company's CARIBBEAN stations (sold in NOVEMBER 2007), for the period JULY 1st, 2007 through SEPTEMBER 30th, 2007, net revenues for the three months ended SEPTEMBER 30th, 2008 decreased $3.8 million to $80.0 million, a decrease of 4.5% from the same period in 2007. CUMULUS stated that the decrease is primarily due to "a general weak demand for advertising across our station platform."
Meanwhile, ALL ACCESS is hearing rumblings of more cuts to come, with LEXINGTON possibly next on the list for some positions to be eliminated. Look for more on this as soon as tomorrow.