Cumulus Reports 2Q Net Revenue Increased 3.1 Percent

Cumulus Media Tuesday reported financial results for the three and six months ended June 30, 2013.

Lew Dickey, Chairman & CEO stated: "This was a solid quarter earmarked by revenue growth and strong expense management. Our targeted growth initiatives are ramping on schedule and our merger integration and problem market turnarounds are largely complete."

Financial highlights are as follows (in thousands, except percentages)

Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012

Net revenues for the three months ended June 30, 2013 increased $8.7 million, or 3.1%, to $289.7 million, compared to $281.0 million for the three months ended June 30, 2012. This increase was attributable to a $4.3 million increase in local advertising revenue, a $3.9 million increase in revenue related to digital initiatives and a $2.8 million increase in revenue due to the addition of stations in the Bloomington and Peoria markets we acquired from Townsquare Media in July 2012. These increases were partially offset by a decrease of $2.3 million in cyclical political revenue.

Direct operating expenses for the three months ended June 30, 2013 increased $3.1 million, or 1.8%, to $171.8 million, compared to $168.7 million for the three months ended June 30, 2012. The increase was primarily attributable to a $4.6 million increase in our strategic content initiatives, a $4.1 million increase related to ongoing investments in our sales infrastructure and a $1.9 million increase in expenses due to the addition of stations in the Bloomington and Peoria markets we acquired from Townsquare Media in July 2012. These increases were partially offset by a $7.5 million decrease in music royalties.