Cumulus Media ( (CMLS) ) has released its Q3 earnings. Here is a breakdown of the information Cumulus Media presented to its investors.
Cumulus Media, a prominent audio-first media company, operates a vast network of radio stations and digital platforms, delivering premium content and advertising solutions to a wide audience across the United States. The company recently released its third-quarter 2024 earnings report, highlighting a decline in total revenue but showcasing growth in its digital marketing services. The report underscores the company’s strategic focus on expanding its digital footprint amidst a challenging advertising landscape.
Cumulus Media reported a total revenue of $203.6 million for the third quarter of 2024, marking a 1.8% decrease compared to the same period in 2023. Despite this decline, the company’s digital revenue grew by 7.5%, driven largely by a 38% increase in digital marketing services. This growth was attributed to an increase in new customers, enhanced customer retention, and a higher average order size. The digital segment now accounts for 20% of the company’s total revenue, reflecting Cumulus Media’s strategic shift towards digital expansion.
The financial performance of Cumulus Media was also marked by a net loss of $10.3 million, compared to a net income of $2.7 million in the previous year. Adjusted EBITDA also saw a decrease, falling from $26.9 million in Q3 2023 to $24.1 million in Q3 2024. Additionally, the company reported generating $3.9 million in cash from operations, while managing a total debt of $673 million.
Looking ahead, Cumulus Media’s management remains cautious due to the uncertain advertising environment but is optimistic about leveraging its diverse asset portfolio. The company aims to capitalize on its digital growth, extensive programming, and robust sales capabilities to maximize value for shareholders. With a strong leadership team, Cumulus Media is poised to navigate the challenges and explore opportunities for sustained growth and profitability.
