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.
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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."
A few more quarters of positive results along with an increase in liquidity in the capital markets and deal flow will begin to accelerate.
Doug Ferber
DEFcom