CUMULUS MEDIA first-quarter net revenue rose 1.4% year-to-year to $267.5 million, with net income up from a loss of $5 million to a gain of $451,000 (-17 to +2 cents/basic and diluted share) and Adjusted EBITDA up 3.8% to $41.8 million. Broken out between divisions, the CUMULUS Radio Station Group saw revenue fall slightly, from $168 million to $166.5 million, and net income drop from $28.8 million to $25.8 million, while WESTWOOD ONE revenue increased from $94.8 million to $100.4 million and net income rose from $5.8 million to $9.6 million.
Pres./CEO MARY G. BERNER said, “Driven by a steady focus on our key strategic priorities including accelerating digital growth, our strong performance continued in Q1 2019 with year-over-year increases in both revenue and EBITDA. Additionally, we now have four pending M&A transactions (the sale of Hot AC WPLJ/NEW YORK, News-Talk WYAY/GAINESVILLE, GA-ATLANTA, Hot AC WRQX (MIX 107.3)/WASHINGTON, Triple A KFFG/LOS ALTOS-SAN JOSE, Hot AC WZAT (102.1 THE SOUND)/TYBEE ISLAND, GA-SAVANNAH, and Classic Rock WXTL (THE REBEL 105.9)/SYRACUSE to EMF, the swap of Country WNSH/NEWARK-NEW YORK and AC WMAS-F and Country WHLL (98.1 NASH ICON)/SPRINGFIELD, MA to ENTERCOM for AC WNTR (107.9 THE MIX), Top 40 WZPL, and Sports WXNT-A (CBS SPORTS 1430)/INDIANAPOLIS, the swap of AC WEBE/WESTPORT, CT and News-Talk WICC-A-W297CP/BRIDGEPORT, CT to CONOISSEUR MEDIA for Classic Rock WODE (99.9 THE HAWK), Alternative WWYY-W234AX (SPIN RADIO 107.1), and Sports WEEX-A-WTKZ-A (ESPN LEHIGH VALLEY)/ALLENTOWN-BETHLEHEM-EASTON, PA, and the sale of Rock KLOS/LOS ANGELES to MERUELO MEDIA) that collectively are expected to generate more than $120 million of net proceeds and bolster our competitive positions in INDIANAPOLIS and ALLENTOWN. Combined with the $25 million voluntary prepayment made in FEBRUARY, these proceeds will reduce our net leverage to 4.8x on a pro forma basis. We look forward to continuing our disciplined execution against all our strategic priorities and financial goals in the quarters ahead.”