Cumulus Media says it continues to face adverse conditions from “softness” in the overall ad market.
On Friday the company reported a roughly 11% drop in net revenue in the second quarter compared to a year earlier, bringing in $210.1 million. Q2 last year included record-setting political revenue.
Broadcast revenue helped drag this Q2 down, declining about 16% to $146.8 million. Spot sales were down about 16%, network was down 18% and digital revenue, which for radio companies is typically a brighter spot in terms of percentage growth, was down about 1%.
The company did not release a dollar figure for its podcast division, but it said the “Other” category grew 11%.
Cumulus lost $1.1 million in the quarter, compared to net income of $8.7 million a year ago.
The company said the results were in line with expectations. In a statement, Cumulus CEO Mary Berner said: “We will continue to invest in our digital businesses, further enhance our operating leverage through additional cost reductions, and execute on our strategy to opportunistically deploy capital to maximize long-term shareholder value.”
Cumulus’ capital expenditures grew year over year from $6.3 million to $6.6 million, according to its SEC filing.
The company has been reducing its real estate footprint. Berner as recently as last year said such downsizing was happening in nearly 30 of its markets. On an earnings conference call Berner said the company continues to look for areas of efficiency that can lead to cost reductions, including further cuts in real estate costs.
Recent notable moves also include the sale of WDRQ(FM) in Detroit to Family Life Radio for $10 million, with the closing expected in the third quarter.
The company remains in heavy debt, though it has been working to reduce that burden. It owed $681 million as of June 30, down from $743 million at the end of the second quarter in 2022. Berner said the company’s debt “is at its lowest level in more than a decade.”
The company also has been aggressively repurchasing shares. It executed a tender offer earlier this year, which resulted in the retirement of approximately 10% of shares outstanding, according to Cumulus. “We executed a highly accretive and opportunistic tender offer, which resulted in the retirement of approximately 10% of our shares outstanding,” Berner said in the press release.
Cumulus has 404 radio stations in 85 markets.
