Cumulus Stock Tanks After Earnings Report

UPDATE Friday 11/6/15...

Cumulus Media tock fell off the table Thursday night, down 18.6% after a market-hours decline of 8.1%, as it posted a Q3 report where revenues slipped and missed expectations.

After 30 days trading under $1/share, Cumulus Media has gotten a deficiency notice from Nasdaq saying it's not in compliance with its minimum bid price rule for Global Select Market.

The move means the company has until May 2 to regain compliance with 10 straight days of a bid price closing at $1 or more, or risk delisting.

Thursday posting...

Cumulus Media Inc. today announced operating results for the three and nine months ended September 30, 2015.

For the quarter ended September 30, 2015:

• The Company reported net revenue of $289.4 million, down 7.8% vs.2014
• Adjusted EBITDA of $70.6 million, down 11.5%

For the nine months ended September 30, 2015:

• Net revenue and Adjusted EBITDA were $859.9 million and $196.1 million, down 8.0% and 18.0%, respectively, from the comparable measures a year ago.

New CEO Mary G. Berner commented, "Despite Cumulus' recent challenges, my early experiences have reinforced my appreciation for the strength of the Company's aggregate assets, including its people. I was hired by the Company's Board of Directors to maximize the value of those assets and I believe that, through focused execution, we will be able to capitalize on the operational leverage that appears to exist in the Company. While such efforts will not be easy nor, in many cases, immediate, I intend to institute a relentless commitment to improvement over the coming months to drive results for all stakeholders."

Takeaways from analysts conference call:

• Ratings: Berner noted the company's management structure hindered collaboration between the corporate and local levels where programming was concerned, "resulting in detrimental outcomes driven in large part by that very lack [of] collaboration." The company will address these issues with a realignment of its programming structure "to take advantage of local programming and expertise, particularly in major markets."
• Sales Execution: The current sales platform was imposing an unnecessary burden on sales staffs and "was not producing benefits for them, their managers and assuredly not the top line." Berner says the company is developing "a more steamlined overlay to our current system, which we expect to have implemented shortly."
• Culture: Cumulus experienced 48% turnover (more than 2,000 people) in the last 18 months, "the vast majority of which was voluntary." Berner estimated expenses related to "lost opportunity, recruitment, training, lost productivity and reputational issues" in the millions of dollars annually.
• Nash: "I wholeheartedly believe in and, driven by personal experience, am excited by the potential of lifestyle and affinity brand businesses in general and Nash in particular as they're a powerful way to provide unique and deeply engaging offerings to consumers at a differentiated and highly sought-after value proposition for advertisers."

Pandora Up 7.1% After Licensing Deal With Sony/ATV

Pandora and Sony/ATV Music Publishing today announced a multi-year licensing agreement for Sony/ATV’s catalog of musical works. The direct publishing deal creates business benefits for Pandora, while modernizing compensation for Sony/ATV and its songwriters in the U.S.

“We believe that this agreement with Pandora is a major step in the right direction to ensure that our songwriters are fairly compensated for the use of their music on streaming services,” said Martin Bandier, Sony/ATV Chairman and CEO. “We are pleased that our songwriters will begin to enjoy the benefit of better rates on one of the most important platforms for music consumption and discovery. It is part of our ongoing strategy to ensure that all digital music services recognize the indispensable value that the words and music of a song bring to their businesses.”

“This is a significant milestone in our long-standing effort to strengthen ties with the music maker community,” said Brian McAndrews, chief executive officer of Pandora. “Over 10 years, Pandora has built music’s most powerful marketing engine, which we put into action every day for Sony/ATV’s storied catalog. By partnering directly with Sony/ATV, we are proud to lock in our opportunity to connect an incredibly talented community of songwriters with streaming music’s largest and most passionate audience.”

While specific terms of the multi-year agreement are confidential, the companies worked together to build an innovative win-win approach to publisher economics. Sony/ATV achieved its goal of delivering improved performance royalties for its songwriters while Pandora will benefit from greater rate certainty and the ability to add new flexibility to the company’s product offering over time.

The public performance royalties Pandora also pays to rights holders of master recordings are not affected by this agreement.

Losses Widen For iHeartMedia

Amid falling revenues, radio and billboard giant iHeartMedia Inc. on Thursday reported a wider third-quarter loss from the same quarter a year ago.

The company reported a quarterly loss of $221.91 million, compared to a $114.85 million loss in the third quarter of 2014.

Revenues for the quarter of $1.58 billion decreased 3 percent from the year before when unfavorable foreign exchange rates are factored in, the company said.

“We continue to leverage our entire company’s expansive portfolio of products, media platforms, content and personalities to enable advertisers and partners to engage seamlessly with consumers around the world,” said Bob Pittman, Chairman and Chief Executive Officer.

“At iHeartMedia, we are building on the power of sound, social and mobile to redefine the future of consumer media and entertainment. In September, our fifth annual iHeartRadio Music Festival generated more buzz than ever with over 7 billion social media impressions, ahead of the Big Game Half Time Show for the third consecutive year and ahead of the Academy Awards. At outdoor, we continue to prove the value of outdoor to local, national and global advertisers through our industry-leading innovation and creativity.”

Key Financial Highlights

The Company’s key financial highlights for the third quarter 2015 include:

• Consolidated revenues increased slightly, excluding the unfavorable impact from movements in foreign exchange rates. On a reported basis, consolidated revenue decreased 3% to $1.6 billion.
• iHeartMedia revenues increased $22 million, or 3%, excluding political revenue. On a reported basis, revenues increased $16 million, or 2%.
• Americas outdoor revenues increased $4 million, or 1%, excluding the unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues decreased $3 million, or 1%.
• International outdoor revenues increased $5 million, or 1%, excluding the unfavorable impact from movements in foreign exchange rates. On a reported basis, revenues decreased $43 million, or 11%.
• OIBDAN1 decreased 4%, excluding the unfavorable impact from movements in foreign exchange rates and on a reported basis.

Townsquare Net Revenue Jumps 9.7 Percent

Townsquare Media, Inc. announced today financial results for the third quarter ended September 30, 2015.

Townsquare's net revenue for the third quarter increased over the prior year period by 9.7%  (excluding the acquisition of North American Midway Entertainment ("NAME") and 7.1% including NAME and on a constant currency basis, driven by growth across each of its operating segments.

"We believe our third quarter performance again demonstrates the strength of our diversified strategy,” commented Steven Price, Chairman and Chief Executive Officer of Townsquare. “Our results were in line with our guidance and our strong cash flow generation also allowed us to strengthen our balance sheet through the voluntary repayment of $20 million of our outstanding term loan debt.”

Third Quarter Highlights As compared to the third quarter of 2014 on a pro forma basis:

• Net revenue increased 4.2%, and 5.1% excluding political revenue
• On a constant currency basis, net revenue increased 7.1% and 8.0% excluding political revenue
• Excluding NAME, net revenue increased 9.7%, and 11.0% excluding political revenue
• Pro forma Adjusted EBITDA decreased 4.6%, and 1.7% on a constant currency basis, in line with guidance and in part due to the reduction in political revenue

Year to Date Highlights As compared to the first nine months of 2014 on a pro forma basis:

• Net revenue increased 5.3%, and 5.9% excluding political revenue
• On a constant currency basis, net revenue increased 6.6% and 7.3% excluding political revenue
• Excluding NAME, net revenue increased 8.0%, and 8.9% excluding political revenue

Steve Price

Price continued, “This was an exciting quarter for Townsquare as we completed the acquisition of NAME, the largest provider of rides, games and food concessions in North America. NAME fits squarely within our core stated strategy of providing affordable, family-friendly entertainment content. We see many benefits of a combined company, including leveraging our radio and digital assets to drive awareness and attendance to NAME’s fairs. The addition of NAME strengthens our position as an operator of market leading media and entertainment assets, focused on small and mid-sized markets, offering premium content and experiences to its audience and connecting advertisers with consumers, whether it be on-air, online, or on site."

Radio One Reports Revenue Growth of 3.3 Percent

Radio One, Inc. today reported its results for the quarter ended September 30, 2015.

• Net revenue was approximately $115.9 million, an increase of 3.3% from the same period in 2014, reflecting greater advertising demand and an increase in affiliate revenue at our cable television segment.  
• Station operating income was approximately $42.2 million, an increase of 9.2% from the same period in 2014. 

The Company reported operating income of approximately $7.1 million for the three months ended September 30, 2015, compared to operating income of $19.6 million for the same period in 2014. Net loss was approximately $18.1 million or $0.38 per share compared to $13.2 million or $0.28 per share, for the same period in 2014.

Alfred C. Liggins III, Radio One's CEO and President stated, "Continuing strong performances by TV One and Reach Media more than offset the revenue declines from our Radio business. Radio continues to be a challenging business, with the markets in which we operate down 2.2% for the quarter, compared to our 6.6%.

Alfred C. Liggins

"We are seeing some signs of stabilization in our Washington DC and Houston clusters, as well as strong performances from Dallas, Philadelphia and St Louis. During the quarter we experienced double-digit ratings growth in 11 of our 15 markets, and our four largest markets showed ratings growth of 15% on average from July to September. This positive ratings momentum should lead to improved monetization in 2016.

"Fourth quarter core radio advertising revenues, excluding political advertising, are currently pacing (8.3%) YTY. We remain focused on correcting our underperforming radio clusters, while delivering increased cash-flow through overall cost containment, and revenue growth in the cable television business. I am excited that David Kantor has accepted the role as CEO of our radio platform, including our local stations, network and syndication business. Bringing together all of our radio assets under one leadership structure will enhance our ability to compete and transform our business for the future."

Saga Communications Reports 3Q Revenue Off 1.6 Percent

Saga Communications, Inc. today reported free cash flow increased 11.3% to $5.5 million for the quarter ended September 30, 2015.

• Net revenue decreased 1.6% to $33.8 million.  
• Station operating expense decreased $2.0 million to $24.3 million 
• Operating income increased 14.0% to $6.5 million.  
• Net income for the period was $3.1 million
• Free cash flow increased 3.2% to $14.7 million.  

During the quarter the Company closed on it purchases of 4 FM and 2 AM radio stations serving the Harrisonburg, VA radio market.  The total purchase price was $11.0 million.

Media Stocks Tank Over Time Warner Outlook

Time Warner's stock tanked Wednesday after the company said it expects that 2016 earnings per share would come in below its previous target, that Turner subscriber trends have come in below expectations this year and that the company may license less TV content to digital platforms or do so later.

According to The Hollywood Reporter, CEO Jeff Bewkes said the company would spend aggressively on new content and other things and look to maximize its profitability and the value of its content for the long-term rather than near-term. "We have identified additional investments," he said, adding that they would "weigh on earnings."

Time Warner's comments, which came as the media company announced third-quarter results, stoked fears that pay TV cord-cutting is picking up pace and sent its shares down 6.6%.

The LA Times reports there's concern among media analysts that the transition to digital might be messier than first recognized.

Doug Creutz

"This is going to be a more volatile group for a while," said Doug Creutz, an analyst with Cowen & Co. "We've seen TV audiences dramatically decline. We're seeing ad dollars flow out of national TV and into digital. And they've got the specter of people cord-cutting."

There's fear that traditional media giants have fallen into a vicious cycle. As they turn their focus to subscription services such as HBO Now, are they giving consumers even more reason to ditch their cable and satellite TV packages?

Wall Street's skittishness has forced media firms to take a hard look at their strategies to make sure they are not sacrificing profits in a rush to embrace digital platforms. Some analysts have called for companies to reassess whether they have made too much of their programming available to Netflix, Hulu and other services — further encouraging a flight of TV viewers. Others suggested rate increases for online subscription services to boost profit.

"This isn't a near-term problem, but a long-term battle that is going to be fought for several years because no one knows what the future of the industry is going to look like," Creutz said.

SiriusXM Paces Liberty Media Results

• SiriusXM reported strong third quarter results
• Subscriber base grew to nearly 29 million
• Record third quarter revenue up 11% to $1.17 billion
• Net income of $167 million, an increase of 22%

Liberty Media on Wednesday posted third-quarter earnings of $41 million, down from $87 million a year earlier.

Revenue rose to $1.3 billion from $1.2 billion a year ago.

Liberty Media, controlled by billionaire mogul John Malone, is the parent of Sirius XM Radio and Atlanta National League Baseball Club and has equity stakes in Time Warner, Viacom, Charter Communications and Live Nation Entertainment.

By itself, Sirius XM, which is a publicly traded company on its own, reported record revenue of $1.2 billion with nearly 29 million subscribers, also a record. Net income climbed 22 percent to $167 million.

Accirding to The Hollywood Reporter, Wednesday's earnings report didn't seem to concern investors one way or the other, as the stock was up 1 percent on the day to $41.32 and it didn't move after the closing bell.

Facebook Shares Hit All-time High

(Reuters) --  Facebook Inc posted surprisingly strong profit and revenue growth as the world's largest social network grew even larger, with a spike in mobile users and advertising that lifted its stock to an all-time high.

The company on Wednesday reported audience numbers that suggest it is poised to take on mainstream media as an advertising force, helping investors to overlook Facebook's huge spending on hiring and building data centers.

Facebook now has 8 billion video views per day from 500 million people, compared with 4 billion views in April.

And Facebook's website and Instagram photo-sharing app, which opened up its platform to all advertisers in the third quarter, account for more than 1 in 5 minutes spent on mobile devices in the United States, Chief Operating Officer Sheryl Sandberg said.

Facebook had 1.55 billion monthly active users as of Sept. 30, up 14 percent from a year earlier. Of these, 1.39 billion used the service on mobile devices.

Market research firm FactSet StreetAccount had predicted 1.53 billion monthly active users, with 1.36 billion on mobile.

Ad revenue grew 45.4 percent to $4.30 billion, with 78 percent of that coming from mobile versus 66 percent in the year-ago quarter.

Facebook did not disclose Instagram's ad sales figures. But the app is expected to bring in $595 million in mobile ad revenues this year, research firm eMarketer said. Its ad revenue is projected to grow to $2.8 billion by 2017.

Net income attributable to stockholders rose to $891 million, or 31 cents per share, from $802 million, or 30 cents per share.

(Reporting by Yasmeen Abutaleb in San Francisco and Lehar Maan in Bengaluru; Editing by Sayantani Ghosh, Stephen R. Trousdale and Richard Chang)

SLC Radio: Chris Hoffman New PD At AC KBEE-FM

Chris Hoffman

Cumulus Media announces that it has appointed radio programming professional Chris Hoffman as Program Director and Operations Manager of AC KBEE B98.7 FM in Salt Lake City.

A 25-year radio broadcasting veteran, Hoffman has programmed stations in Denver, Kansas City and San Francisco, where he was most recently Program Director of KUFX-FM/San Francisco for Entercom. The appointment marks a return to Cumulus for Hoffman, who was Operations Manager for Cumulus Kansas City from 2009-2013.

Patrick Reedy, Vice President/Market Manager for Cumulus Salt Lake City said: “We’re thrilled to have Chris back at Cumulus and even more thrilled that he is joining the Salt Lake City team.”

KBEE 98.7 FM (40 Kw) Red=Local Coverage Area 

Hoffman said: "What a great time to be back with Cumulus as it becomes ‘the new’ Cumulus. I can't wait to get to work with SVP/Content & Programming Mike McVay and Market Manager Pat Reedy, as well as the entire team in Salt Lake City. Together, we will drive the continued growth and success of our brands.”

Columbus OH Radio: Saga To Acquire WLVQ-FM

Saga Communications announced Wednesday that it has entered into an agreement to purchase the assets of Classic Rock WLVQ 96.3 FM from Wilks Broadcast – Columbus LLC. for a reported $13M.

WLVQ’s classic rock format will not change, said Edward K. Christian, Saga’s president and CEO, in a statement.

"This station will add another heritage radio station to our already strong station group in Columbus, OH. We look forward to working with the existing staff to continue the great rock heritage that this station has established.  Saga intends to continue building its business in both the radio and television markets by identifying and acquiring middle market stations."  Christian said.

WLVQ 96.3 FM (18 Kw) Red=Local coverage Area

In addition to WSNY, Saga’s other Columbus properties include AC WVMX 107.9 FM and Classic Hits WNND 103.5 FM / 104.3 FM / Rewind. Michigan-based Saga owns or operates broadcast properties in 26 markets, including 66 FM and 32 AM radio stations.

Georgia-based Wilks continues to own two other stations in central Ohio — Sports WZOH 95.5 FM and Classic Country WHOK 107.1 FM in central Ohio. Formed in late 2004, Wilks owned as many as 21 stations in six markets in 2009, but has been selling off stations in the past two years and now owns nine stations in three markets.

And The 2015 CMA Awards Winners Are....

Chris Stapleton

Chris Stapleton was the big winner during “The 49th Annual CMA Awards” as he went three for three, sweeping each category in which he was nominated.

Hosted by Brad Paisley and Carrie Underwood from the Bridgestone Arena in Nashville, Country Music’s Biggest Night lived up to its reputation for riveting performances, inspired acceptance speeches, and collaborations that brought down the house as the industry audience rose to its feet with the announcement of every winner.

Stapleton was named Male Vocalist and New Artist of the Year. His LP Traveller was also named Album of the Year. Stapleton receives a second trophy as a producer for the project, which he co-produced with Dave Cobb. This marks the first time a New Artist winner also won for Album of the Year, and are Stapleton’s first CMA Awards.

Luke Bryan

“I feel lots of love. It’s a short answer, but it’s a real one,” Stapleton told press gathered backstage.

Luke Bryan brought home a second consecutive win for Entertainer of the Year.

“I put so much pride in giving all I’ve got every night performing, getting off the stage with ice packs on my knees and out of breath,” Bryan said. “This is a night where I can go ‘Gosh, people are paying attention to that.'”

Early winners were Maddie & Tae, and Keith Urban withEric Church. The duo, made up of Maddie Marlowe andTaylor Dye, earned their first CMA Award for Music Video of the Year for “Girl In A Country Song,” which was directed by TK McKamy. Urban and Church picked up an Award for Musical Event of the Year for “Raise ‘Em Up.”

The win marks Urban’s fourth trophy in the category, tying him with Vince Gill, Tim McGraw, and Paisley as top winners. He is also the only artist to win three years in a row.

“Girl Crush” was named Single and Song of the Year, marking Little Big Town’s second victory in the Single category. The track was produced by Jay Joyce and songwriters Hillary Lindsey, Lori McKenna, and Liz Rose are first-time winners for penning the hit. Little Big Town were also named Vocal Group of the Year for the fourth consecutive time.

Florida Georgia Line took home their third consecutive Vocal Duo of the Year win.

Miranda Lambert continued her reign as Female Vocalist of the Year as she collected the trophy for the sixth consecutive year. She holds the record for most wins in the category, and is the most awarded female in CMA history.

Mac McAnally likewise extended his winning streak as he was named Musician of the Year for the eighth year in a row.

RECAP: Click Here for CMA Radio Winners.

Winners of The 49th Annual CMA Awards:

Entertainer of the Year
Luke Bryan

Album of the Year
Traveller, Chris Stapleton
Produced by Dave Cobb and Chris Stapleton

Female Vocalist of the Year
Miranda Lambert

Male Vocalist of the Year
Chris Stapleton

Song of the Year
“Girl Crush,” by Hillary Lindsey, Lori McKenna, and Liz Rose

Single of the Year
“Girl Crush,” Little Big Town

Vocal Group of the Year
Little Big Town

Vocal Duo of the Year
Florida Georgia Line

New Artist of the Year
Chris Stapleton

Music Event of the Year
“Raise ‘Em Up,” Keith Urban featuring Eric Church

Music Video of the Year
“Girl In A Country Song,” Maddie & Tae (directed by TK McKamy)

Musician of the Year
Mac McAnally

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