Q2 2024 Cumulus Media Inc Earnings Call Transcript
Key Points
- Cumulus Media Inc (CMLS) achieved a 24% growth in its Digital Marketing Services (DMS) business, driven by new customers, improved retention, and higher average campaign order size.
- The company successfully reduced fixed costs by $4 million in Q2, contributing to a total of $8 million in cost reductions year-to-date.
- Cumulus Media Inc (CMLS) extended its debt maturities to 2029 on favorable terms, enhancing financial flexibility and reducing principal debt by approximately $33 million.
- The digital segment, which now accounts for 19% of total revenue, grew by 5% year-over-year, with podcasting revenue increasing for the fourth consecutive quarter.
- Cumulus Media Inc (CMLS) reported strong performance in national advertising categories such as insurance, retail, and telecom, and experienced significant interest in live sports advertising, including record revenue for NCAA basketball championships.
- Overall Q2 revenue was down 2.5% year-over-year, reflecting a challenging advertising environment.
- The national advertising outlook remains uncertain, with continued weakness in categories like financial services, recruiting, and home improvement.
- Local spot revenue declined by 4% year-over-year, impacted by high interest rates affecting auto dealers and financial categories.
- Streaming revenue declined due to the expiration of a fixed-rate sales contract, although the company is optimistic about long-term monetization improvements.
- Despite efforts to reduce costs, the macroeconomic environment remains challenging, causing advertisers to hold back spending, impacting overall revenue pacing for Q3.
Welcome to the Cumulus Media Quarterly Earnings Conference Call. I'll now turn the call over to Collin Jones, Executive Vice President of Strategy and Development and President of Westwood One. Sir, you may proceed.
Thank you, operator. Welcome, everyone, to our second quarter 2024 earnings conference call. I'm joined today by our President and CEO, Mary Berner; and our CFO, Frank Lopez-Balboa.
Before we start, please note that certain statements in today's press release and discussed on this call may constitute forward-looking statements under federal securities laws. Actual results may differ materially from the results expressed or implied in forward-looking statements. These statements are based on management's current assessments and assumptions, and they are subject to a number of risks and uncertainties as discussed in our filings with the SEC.
In addition, we will also use certain non-GAAP financial measures. We believe the supplementary information is useful to investors,
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