• by Erik Sass  @eriksass1, May 3, 2010

This week brought more good news suggesting the beginnings of a potential recovery in the radio business, with several major broadcast groups reporting mostly positive revenue trends in the first quarter.

However, it's still too soon to tell whether these glimmers of hope at Cumulus, Beasley, and Citadel will lead to real long-term stability or growth.

The best performance in terms of percentage growth came from Citadel Broadcasting, which reported total revenues increased 3.8% in the first quarter of 2010 compared to the same period last year, from $158.9 to $165 million.

Even more promising, radio station revenues increased 5.5% from $130.9 million to $138.1 million. The company's operating income more than doubled from $14.2 million to $37 million over the same period.

The good news for Citadel comes as the company continues to work through its contested Chapter 11 bankruptcy reorganization. The company's management has presented a plan for reorganization but this has encountered opposition from some of the company's shareholders.

Cumulus Media also saw total revenues increase, with 1.8% growth from $55.4 million in the first quarter of 2009 to $56.4 million in the first quarter of 2010. Earnings jumped almost two-thirds from $7.5 million to $12.3 million. The company also revealed that it has struck a deal with Crestview Partners, a private-equity firm, giving it access to a war chest of almost $1 billion for buying radio broadcasting companies. (The alliance is probably in the hopes of grabbing undervalued or distressed radio stations on the cheap.)

Finally, Beasley Broadcast Group reported a slight decline in total revenues, which slipped 3.2% from $21.8 million to $21.1 million. While not as positive as the results from Cumulus and Citadel, Beasley's first quarter is still noteworthy for showing a substantial moderation in the rate of decline compared to the last year.

The company's operating income increased thanks to aggressive cost-cutting measures, and management expressed optimism that "the radio industry and Beasley Broadcast Group have begun to see a rebound in advertising spending."