Cumulus Media Inc. has announced operating results for the three and nine months ended Sept. 30, 2023.
Mary G. Berner, president and CEO of Cumulus Media, said, “Third-quarter revenue and adjusted EBITDA finished in line with expectations with results reflecting the continued dichotomy between local and national business lines. Despite the challenging environment, we maximized performance by continuing to focus on areas we can control, including growing each of our digital businesses, reducing costs, and improving our balance sheet through non-core asset sales and debt reduction. These actions have further improved the company’s revenue growth profile, operating leverage, financial flexibility, and strategic optionality and, collectively, position us to rebound when the advertising environment improves.”
Berner continued, “While we are continuing to see weakness in national markets, as companies are starting to set their 2024 marketing budgets, we are seeing some initial indications from key national advertisers in several categories that sentiment is improving for next year. That tone, combined with the anticipation of a robust political spending cycle, gives us cautious optimism that we may be seeing the early signs of a market recovery.”
The company provided the following performance summary:
- Generated digital revenue of US$37.2 million, an increase of 7% year-over-year — representing 18% of total revenue, with growth across streaming, podcasting and digital marketing services.
- Recorded third-quarter net income of $2.7 million compared to $8.5 million in Q3 2022 and adjusted EBITDA of $26.9 million compared to $46.6 million in Q3 2022.
- Reported net revenue of $623.2 million, a decrease of 11.2% from the nine months ended September 30, 2022, a net loss of $19.8 million and adjusted EBITDA of $67.9 million.
- Retired $5.2 million face value of term loans at an average purchase price of 83.5% of par.
- Reported total debt of $675.8 million at Sept. 30, 2023, and net debt of $592.9 million.
- Completed the sale of WDRQ-FM for $10.0 million of gross proceeds.