Cumulus 1Q: Expenses Rise 6.9% , Revenue Drops 1.3%

Cumulus Media today reported financial information for the 1Q 2013, ending March 31.

• Direct operating expenses increased $10.6 million, or 6.9%, to $164.2 million, compared to $153.6 million for 1Q 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."

• Net revenues for the 1Q 2013 decreased $3.1 million, or 1.3%, to $232.9 million, compared to $236.0 million for the three months ended March 31, 2012.

This decrease was attributable to lower political revenues and general lower advertising spending in some of our markets.

Chairman/CEO Lew Dickety 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."