Cumulus Media Enjoys 3% Revenue Growth In Q3, Turns A Profit Again
November 1, 2010 at 1:43 PM (PT)
CUMULUS MEDIA reported a 3.6% increase in broadcast and net revenues for Q3, with a 3.8% and 3.9% increase, respectively for the first nine months of 2010. Net income soared percentage wise, 106.8% from a loss of $143 million in Q3 to a net profit of $9.7 million. So far this year, CUMULUS has turned a profit of almost $22 million, compared to a loss of 133 million in the first nine months of 2009.
The turnaround is attributed to "an increase in revenue from national accounts, political revenue generated by mid-term elections, and increases in Internet-related revenues." CUMULUS' quarterly statement read. "We believe that continued incremental growth in advertising revenue throughout the fourth quarter of 2010 will be driven primarily by increase in national revenue and cyclical political spending."
"We continue to innovate the radio business model to achieve industry leading EBITDA growth," Chairman/CEO LEW DICKEY stated, "Our technology platform is driving increased efficiencies as our LTM EBITDA margins improved 100 bps to 31%. Our management systems are directing scores of new sellers generating thousands of new advertisers across our platform while keeping cost of sales in check. Our low cost of capital and expanding margins combine to enable us to generate considerable free cash flow to accelerate our de-leveraging."