On October 27, 2023, Cumulus Media Inc (CMLS, Financial) announced its operating results for the third quarter of 2023. Despite a challenging environment, the company managed to align its revenue and Adjusted EBITDA with expectations. The company's focus on growing its digital businesses, reducing costs, and improving its balance sheet through non-core asset sales and debt reduction has enhanced its financial flexibility and strategic optionality.
Financial Highlights
For the third quarter ended September 30, 2023, Cumulus Media Inc (CMLS, Financial) reported a net revenue of $207.4 million, marking an 11.2% decrease from the same period in 2022. The company's net income stood at $2.7 million, with an Adjusted EBITDA of $26.9 million. For the nine months ended September 30, 2023, the company reported a net revenue of $623.2 million, a decrease of 11.2% from the same period in 2022, and a net loss of $19.8 million.
Revenue and Earnings Breakdown
The company's total broadcast radio revenue for Q3 2023 was $146.25 million, marking a 17.4% decrease from the same period in 2022. Digital revenue, however, saw a 6.6% increase to $37.2 million. The company's net income for the quarter was $2.7 million, down from $8.5 million in Q3 2022. The Adjusted EBITDA for the quarter was $26.9 million, a significant decrease from $46.6 million in Q3 2022.
Balance Sheet and Debt Summary
As of September 30, 2023, Cumulus Media Inc (CMLS, Financial) reported a total debt of $675.8 million and cash and cash equivalents of $82.8 million. The company retired $5.2 million face value of term loans at an average purchase price of 83.5% of par. The company also completed the sale of WDRQ-FM for $10.0 million of gross proceeds.
Looking Ahead
Despite the current weakness in national markets, Cumulus Media Inc (CMLS, Financial) is optimistic about the upcoming year. As companies begin to set their 2024 marketing budgets, the company is seeing initial indications of improving sentiment from key national advertisers. This, combined with the anticipation of a robust political spending cycle, gives the company cautious optimism for a potential market recovery.
Explore the complete 8-K earnings release (here) from Cumulus Media Inc for further details.
