Cumulus Revenue Down 1.3% In First Quarter
Cumulus revenue dropped from $235.6 million to $232.9 million in the quarter. According to CEO Lew Dickey, $1.7 million was due to a net decrease in political advertising, $1.5 million was due to barter runoff, and $2.4 million was attributed to the network division, "due to the syndicated talk segment which continues to be challenged."
The company will also be investing $25 million annually back into the company. $12.5 to the CBS Sports Network, $5 million to the traffic division, $5 million on NASH-FM in New York, and $2.5 million on SweetJack. Dickey expects more than a two-to-one return on these investments in 2014.
Dickey said Q2 pacings look much better. "April we are pacing up $3 million, and in May and June stations are pacing up 4.5 percent. July, with national, looks better yet." He also said the network will be flat to slightly positive. "The economy appears to be on a slow climb. It's steadily getting better."
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