Cumulus Reports 3Q Revenue Up 2.1 Percent

Cumulus Media Inc today reported financial results for the three and nine months ended September 30, 2013.

Lew Dickey, Chairman & CEO stated: "This was another solid quarter for the Company. Our growth initiatives complemented our core business, which continued to take share, and we are seeing a continuation of these trends in fourth quarter."

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

       

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

Net revenues for the three months ended September 30, 2013 increased $5.7 million, or 2.1%, to $281.1 million, compared to $275.4 million for the three months ended September 30, 2012.

This increase was primarily attributable to a $4.6 million increase in local spot advertising revenue, an increase of $2.1 million in national advertising revenue, an increase of $1.3 million in live event revenue, and an increase of $0.9 million in revenue due to the addition of stations in the Bloomington and Peoria markets which were acquired in July 2012, all of which was partially offset by a decrease of $2.9 million in cyclical political revenues.

Direct operating expenses for the three months ended September 30, 2013 increased $12.3 million, or 7.6%, to $174.0 million, compared to $161.7 million for the three months ended September 30, 2012.

The increase was primarily attributable to $4.0 million of ongoing investments in national content initiatives, a $1.9 million increase related to ongoing investments in the sales infrastructure, and a $0.6 million increase in expenses due to the acquisition of stations in the Bloomington and Peoria markets. In addition, music publishing license fees increased by $8.3 million as a result of a non-recurring, one-time credit received in the comparable 2012 period from an industry-wide settlement with Broadcast Music, Inc.