(CelebrityAccess) — Radio conglomerate Cumulus Media released its the financial results for its third fiscal quarter, recording declines in revenue and an expanding net loss from 2023.
For the quarter ending September 30, 2024, the company’s net revenue declined 1.8% to $203.6 million, and it reported a net loss of $10.3 million compared to a $2.7 million net income in Q3 2023. Adjusted EBITDA fell 10.7% to $24.1 million. Broadcast radio revenue decreased 5.0%, while digital revenue grew 7.5%. Year-to-date revenue declined 2.4% to $608.5 million, with a net loss widening to $52.2 million from $19.8 million in 2023. Capital expenditures dropped significantly both quarterly (52.8%) and year-to-date (24.5%). The company’s cash position fell from $80.7 million at year-end 2023 to $52.2 million.
Bright sports for Cumulus in the third fiscal quarter of 2024, included digital revenue, which grew by 7.5% year-over-year to 40%, while the broadcaster’s digital marketing services grew by 38% driven by an increase in new customers, improved customer retention and higher average order size.
Additionally, the number of radio-only customers who also bought digital marketing services grew by 32% during the 3rd quarter from the same period in 2023. Digital revenue now represents 20% of the company’s total revenue, according to financial filings.
Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “During the third quarter, we delivered revenue and EBITDA in-line with pacing commentary and analyst estimates. Given the market challenges, we maintained our focus on what we can control. Specifically, we continued investing to drive growth in our digital businesses, including in digital marketing services which increased revenue nearly 40% in the quarter; capitalizing on areas of improvement in national and political ad spending; maximizing operating cash flow; and improving operating leverage through ongoing expense reductions.”
Berner continued, “Looking forward, the advertising environment remains uncertain. Nonetheless, Cumulus has a valuable set of assets with which to navigate that uncertainty including: profitable and fast-growing digital businesses; a vast national platform that can reach audiences whenever and wherever they choose to listen; extensive feet-on-the-street local sales capabilities which allow us to walk product through the door; premium programming with particular strength in sports and news/talk; an extensive untapped audio library; and a leadership team with a strong track record of expense management and disciplined stewardship of capital. As we continue to execute against our priorities, we see many paths for leveraging these asset
News of the company’s quarterly earnings comes as Cumulus Media appears to be dropping the Hip Hop “Hot 106” format on 106.3 WWKX in Providence, Rhode Island. The station’s longtime morning hosts ‘Mike D’ DaSilva and Alexus Lee announced on Wednesday announced they have left the station, which has begun stunting ahead of an apparent format change.
