Cumulus CEO Lew Dickey reported into Wall Street last night and it was not a stellar quarter for the company. Net revenue for January, February, and March was down $21 million compared to the first three months of 2014. Dickey said the decline was a result of a "continuation of Q4's choppy advertising environment and tepid economic recovery." He said March was very anemic and, unlike iHeartMedia which reported automotive as a strong categroy, Dickey said automotive was not good at all. Here's the breakdown of where the drop-off came from: $18.8 million from broadcast advertising, $1.6 million from digital advertising, and $1.5 million from political.
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Dickey has no one to blame but himself, but if course he will not be held accountable. When Cumulus took over the Citadel stations, Dickey ruined stations like KGO because he looked at local proven talert as disposable expenses, not as proven revenue generators. Dickey thought he could replace them with cheap mundane syndicated programming, and thought that the money would still flow in. Now, Cumulus is paying the price for that seriously flawed thinking.
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