Cumulus Media Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in both revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, net revenue was $203.6 million, a decrease of 1.8% from $207.4 million in the prior year. The nine-month figures showed a similar trend, with net revenue falling to $608.5 million from $623.2 million, a decline of 2.4%. The decrease in revenue was primarily attributed to a $9.5 million reduction in spot revenue, although this was partially offset by increases in digital advertising and network revenue.
Operating income for the third quarter dropped significantly to $6.7 million, down 62% from $17.6 million in 2023. The nine-month period saw an operating loss of $13.4 million, contrasting with an operating income of $21.8 million in the previous year. The net loss for the third quarter was $(10.3) million, compared to a net income of $2.7 million in 2023, while the nine-month net loss increased to $(52.2) million from $(19.8) million.
Adjusted EBITDA also reflected a downturn, with the third quarter showing $24.1 million, down from $26.9 million, and the nine-month total at $57.7 million, compared to $67.9 million in 2023. The company’s total operating expenses for the third quarter rose to $196.9 million, up from $189.8 million, driven by increased selling, general, and administrative expenses.
On the balance sheet, total current assets decreased to $254.5 million from $286.9 million at the end of 2023, while total assets fell to $1.36 billion from $1.44 billion. Total liabilities also decreased to $1.13 billion from $1.15 billion, resulting in a decline in stockholders’ equity to $236.8 million from $286.6 million.
Strategically, Cumulus Media engaged in significant debt restructuring, exchanging $651.3 million of its debt principal for $618.2 million during the second quarter of 2024. The company also completed the sale of Broadcast Music, Inc. (BMI) for $14.8 million, which was recorded as other income. Additionally, Cumulus Media has a new share repurchase program authorized for up to $25 million, although no shares were repurchased in the nine months ended September 30, 2024.
Overall, Cumulus Media's financial performance in 2024 reflects challenges in revenue generation and profitability, alongside ongoing strategic adjustments in its debt structure and asset management.
About CUMULUS MEDIA INC
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