In This Article:
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Total Revenue: $200 million, down 2.7% year-over-year.
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EBITDA: $8.4 million for Q1.
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Digital Marketing Services Revenue: Grew 25% in the quarter.
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Podcasting and Streaming Revenue: Increased low single digits year-over-year.
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Political Revenue: $2.2 million in Q1, down 55% from 2020.
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Debt Reduction: Reduced outstanding debt by approximately $33 million.
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Interest Rates: Secured attractive interest rates.
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ABL Facility: Increased to $125 million from $100 million.
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Expenses: Decreased by approximately $4 million year-over-year.
Release Date: May 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cumulus Media Inc successfully refinanced its capital structure, extending maturities to 2029 and reducing the principal amount of debt by approximately $33 million.
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Digital marketing services revenue grew by 25% in the quarter, demonstrating strong growth in the digital sector.
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The company achieved a 12% improvement in converting previously radio-only customers to digital marketing services buyers.
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Cumulus Media Inc managed to increase its total gross merchandise sales customers by over 25% in the first quarter.
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The company saw significant improvements in national spot and network business trends compared to 2023, with strong increases in consumer packaged goods and insurance categories.
Negative Points
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Total company revenue was down 2.7% year over year, indicating a continued overall decline in revenue.
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Political revenue for the quarter was down 55% from 2020, reflecting less competitive presidential primaries.
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The recovery in national advertising remains uneven, with several key categories like mortgage banking and home improvement citing the interest rate environment as a significant obstacle.
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Local spot revenue performance, although improved from Q4 2023, was still down, indicating ongoing challenges in local markets.
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Total company revenue is currently pacing down low single digits for Q2, suggesting continued revenue challenges ahead.
Q & A Highlights
Q: Can you provide a breakdown of your digital businesses and insights into how they are pacing for the second quarter? A: Francisco Lopez-Balboa, EVP and CFO of Cumulus Media, explained that the digital businesses are still roughly divided into thirds among direct marketing services, podcasting, and streaming. He noted strong growth in direct marketing services and mentioned that digital is currently pacing in the mid-single digits, with particularly strong performance in direct marketing services consistent with first quarter results.