Cumulus Media Inc. (NASDAQ: CMLS), also known as “Cumulus Media” or “the Company,” has announced its financial results for the third quarter and nine months ending September 30, 2024. President and CEO Mary G. Berner shared insights on the company’s performance, focusing on revenue, EBITDA, and digital growth amidst market challenges.
Q3 2024 Financial Highlights
Mary G. Berner emphasized the company’s commitment to controllable factors, stating, “We achieved revenue and EBITDA consistent with pacing commentary and analyst expectations. Despite market challenges, our efforts focused on growth in digital businesses, particularly in digital marketing services, which saw a 40% revenue increase for the quarter. We are also leveraging opportunities in national and political ad spending, maximizing cash flow, and improving operating leverage through expense management.”
Key Takeaways from Q3 2024:
- Total Net Revenue: $203.6 million, a 1.8% decline from Q3 2023.
- Digital Revenue Growth: $40 million, up 7.5% year-over-year.
- Digital marketing services revenue surged by 38%, fueled by new customer acquisitions, better retention, and increased average order size.
- The number of radio-only clients also utilizing digital marketing services increased by 32% year-over-year.
- Digital revenue now comprises 20% of total company revenue.
- Net Loss: Reported at $10.3 million, a decrease from net income of $2.7 million in Q3 2023.
- Adjusted EBITDA: $24.1 million, down from $26.9 million in Q3 2023.
- Cash from Operations: $3.9 million generated in Q3 2024.
- Total Debt: As of September 30, 2024, Cumulus Media’s debt stood at $673 million, with $642.1 million in debt maturing and net debt (after unamortized discount adjustments) at $590 million. The company has $23.9 million in debt due in 2026.
Full Year-to-Date (YTD) Financial Summary for 2024
For the nine months ending September 30, 2024, Cumulus Media reported:
- Net Revenue: $608.5 million, a 2.4% decrease compared to the same period in 2023.
- Net Loss: $52.2 million, a substantial increase from the $19.8 million loss recorded in the same period of 2023.
- Adjusted EBITDA: $57.7 million, down 15.1% from the previous year.
Revenue Breakdown
For Q3 2024, Cumulus Media’s revenue by segment:
- Broadcast Radio Revenue: Totaled $138.96 million, a 5% year-over-year decline.
- Spot revenue: $96.4 million, down 9%.
- Network revenue: $42.6 million, up 5.5%.
- Digital Revenue: $40 million, marking a 7.5% increase from Q3 2023.
- Other Revenue: $24.6 million, up 2.8% year-over-year.
For the first nine months of 2024:
- Broadcast Radio Revenue: $414.8 million, down 5.9% compared to the same period in 2023.
- Spot revenue: $288.8 million, a 7% decline.
- Network revenue: $126 million, a 3.3% decrease.
- Digital Revenue: Reached $113.9 million, up 6.6% year-over-year.
- Other Revenue: $79.8 million, a 5.9% increase.
Balance Sheet Overview
As of September 30, 2024:
- Cash and Cash Equivalents: $52.2 million, down from $80.7 million at the end of 2023.
- Debt Maturity Profile: Term loan due in 2026 is $1.2 million, while senior notes due in 2026 total $22.7 million. The company’s term loan and senior notes due in 2029 are $327.2 million and $321.9 million, respectively.
Conference Call Details
Cumulus Media will host a Q3 2024 earnings call on its investor relations website at 8:30 AM ET. Interested parties can register for the call, which includes a live broadcast and listen-only mode. A recording of the call will be available shortly after completion.
Looking Ahead: CEO Remarks on Future Strategy
CEO Mary G. Berner acknowledged an uncertain advertising environment but highlighted Cumulus Media’s strong assets for navigating challenges. “We possess profitable, fast-growing digital businesses, extensive national reach, local sales expertise, premium programming in sports and news, and a valuable audio library. Our team remains committed to expense management and strategic capital use, allowing us to maximize shareholder value.”
Cautionary Note on Forward-Looking Statements
This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Statements are based on current expectations and are not guarantees of future performance. These statements are subject to risks, uncertainties, and other factors that could cause actual outcomes to differ. Cumulus Media disclaims any obligation to update forward-looking statements due to new information or future events.
