Cumulus Media has released its operating results for the three months ended Mar. 31, 2024.
The company posted a total net revenue of US$200.1 million, a decline of 2.7%, a sequential improvement versus Q4 2023’s year-over-year performance. However, its digital shift seems to be paying off. It generated digital revenue of US$34.4 million, an increase of 7.3% year-over-year, and digital revenue now comprises 17% of total revenue. The company says the addition of new products and investment in its digital sales capabilities drove growth of 25% in digital marketing services.
The company recorded a first-quarter net loss of US$14.2 million compared to a net loss of US$21.5 million in Q1 2023 and adjusted EBITDA of US$8.4 million compared to US$10.3 million in Q1 2023. The company says it has continued to improve operating leverage by reducing fixed costs by approximately US$4 million.
Refinancing capital structure
Mary G. Berner, president and CEO of Cumulus Media, said, “We are thrilled to have refinanced our capital structure to secure five-year maturities with favorable terms through a successful debt exchange and ABL Facility upsize and extension. This is an excellent outcome for the company, especially given the generally difficult financing environment for legacy media companies. Specifically, we extended maturities to 2029, reduced the principal amount of outstanding debt by approximately US$33 million, obtained attractive interest rates, maintained a structure free of financial maintenance covenants, and increased capacity on our ABL Facility by 25%.”
Berner continued, “The importance of these transactions is underscored by the continuing choppiness in the macroeconomic environment. While our Q1 revenue was in line with guidance and a marked improvement from 2023 trends, it is also reflective of the uncertainty that continues to weigh on advertisers. With the advertising environment still unsettled, these new terms provide us additional time and flexibility to execute against our key business priorities — accelerating digital growth, reducing fixed costs, and continuing to de-lever our balance sheet — each of which is foundational to our ability to build long-term shareholder value.”
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