Holding the line on operation expenses and taking advantage in the general rebound being enjoyed in the advertising business enable Cumulus Media Inc. and Cumulus Media Partners LLC to post a Q2 2010 net revenue increase of 5.7% to $69.7M, representing a $3.7M gain over the same quarter in 2009.
Operating expenses actually increased during the quarter, but a large part of that was due to a company-wide week-long furlough instituted the prior year that did not need to be repeated in 2010.
Lew Dickey, Chairman & CEO stated, “This was another quarter of solid performance for both Cumulus Media, Inc. and Cumulus Media Partners, LLC. As we continue to aggressively innovate the radio business through our proprietary technology platform and operating systems, these businesses are running with increased efficiency across all functional areas resulting in strong operating leverage and healthy free cash flow growth. As a result, we continue to make good progress as we work to de-leverage the balance sheets of both of these entities.”
Year-to-date, net revenue is up 3.9% to $126.1M, a $4.8M increase over the first half of 2009.
The company is holding the line on capital expenditures, laying out only $800K in Q2 and $1.2M YTD.
Cumulus is expecting a strong Q3, thanks to the upcoming political cycle. It expects to benefit from increased automotive spending as manufacturers introduce new 2011 models, but find politicians squeezing them out of television airtime.