Cumulus Media Reports 2Q Total Revenue Down YoY

Cumulus Media Inc. today announced operating results for the three and six months ended June 30, 2024. 

Mary Berner

Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, "In the context of a challenging advertising environment, second quarter total revenue finished in line with our pacing guidance, down 2.5% year-over-year. However, our unrelenting focus on areas of the business that are in our control helped us to mitigate the impact of soft demand while also driving tangible progress in key priority areas. During the quarter, we grew our digital marketing services business by 24%; reduced fixed costs by $4 million; and continued to strengthen our balance sheet through the successful completion of our exchange offer, ABL upsizing, and the buyback of a portion of our remaining 2026 maturity debt."

Berner continued, "Looking ahead, while the advertising outlook remains uncertain, our advertisers continue to be focused on when – not if – they’re going to return to more typical spending levels. Fortunately, thanks to our success at extending our debt maturities, we have time on our side and the flexibility to pursue multiple paths to create shareholder value." 

Q2 Key Highlights: 

• Posted total net revenue of $204.8 million, a decline of 2.5% year-over-year
• Generated digital revenue of $39.4 million, up 5.0% year-over-year 
• Digital marketing services grew 24% driven by an increase in new customers, improved customer retention and higher average order size
• Radio-only customers adding digital marketing services increased by 25% year-over-year 
• Digital revenue increased to 19% of total company revenue 
• Recorded net loss of $27.7 million compared to net loss of $1.1 million in Q2 2023 and Adjusted EBITDA(1) of $25.2 million compared to $30.7 million in Q2 2023
• Continued to improve operating leverage by reducing fixed costs by approximately $4 million year-over-year  
• Used $7.9 million of cash in operations, or generated $8.3 million of cash from operations when excluding execution costs related to the completed exchange offer of $16.3 million(1) 
• Completed the exchange offer for our Senior Notes due 2026 and Term Loan due 2026 with favorable terms and aggregate participation of approximately 96% of debt outstanding

Operating Summary (dollars in thousands, except percentages and per share data):

• For the three months ended June 30, 2024, the Company reported net revenue of $204.8 million, a decrease of 2.5% from the three months ended June 30, 2023, net loss of $27.7 million and Adjusted EBITDA of $25.2 million.
• For the six months ended June 30, 2024, the Company reported net revenue of $404.9 million, a decrease of 2.6% from the six months ended June 30, 2023, net loss of $41.9 million and Adjusted EBITDA of $33.6 million.