• by Erik Sass  @eriksass1, May 11, 2010

The first quarter brought some long-overdue good news for the radio business, with Clear Channel Radio and Saga Communications both reporting ad revenue growth compared to 2009. The positive first-quarter results hold out hope for a modest recovery in 2010, but so far the radio rally is fragile at best -- and like other media sectors, it is vulnerable to broader economic setbacks.

Clear Channel Media Holdings -- the company created by a team of private-equity buyers to take the company private in 2007 -- reported that total revenues increased 5% from $1.21 billion in the first quarter of 2009 to $1.26 billion in the first quarter of 2010. This was due, in part, to a 3% bump in ad revenues at Clear Channel Radio, the nation's largest radio broadcast group, combined with a decrease in the division's expenses resulting from continuing strict cost-control measures.

During the depths of the downturn in 2008-2009, the company made several rounds of staff cuts a part of a broad corporate reorganization.

Separately, Clear Channel Outdoor reported that domestic ad revenues were basically unchanged at $271 million. As in previous quarters, the overseas division reported revenue growth driven for the most part by currency exchange fluctuations: total revenues increased about 8% to $338 million.

Also on Tuesday, Saga Communications reported that total revenues increased 7% from $26.1 million in the first quarter of 2009 to $28 million in the first quarter of 2010 -- due mostly to a 6% increase in radio revenues from $22.7 million to just over $24 million.

Revenues at the company's smaller TV division also increased. Like other radio broadcasters, Saga said expenses decreased due to an aggressive cost-cutting campaign over the last several years.