Cumulus Media announced downbeat financial results for its latest quarter and half-year as it continues to wait for FCC approval of steps needed to emerge from bankruptcy.
For the quarter, net revenue fell 9.7% compared to a year earlier to $167.9 million. The company posted a net loss of $9.2 million, though that was an improvement on the Q2 loss of $12.8 million a year earlier.
For the half-year it reported net revenue of $332.4 million, down 11%, and a net loss of $26.1 million, compared to a loss of $45.2 million a year ago.
President/CEO Mary Berner said in a brief statement, “With our plan of reorganization confirmed by the court and the FCC approval process well underway, we are positioned to emerge from Chapter 11 with a stronger balance sheet to capitalize on future market opportunities.”
Breaking down the numbers, Cumulus broadcast revenue for the quarter fell 13.2% to $102.8 million, with a particularly weak showing for network revenue down 21.5%.
Digital revenue, often a bright spot for radio companies these days even as OTA revenue declines, was essentially flat for the quarter at $38.7 million.
The company has made headlines with apparently wide-ranging cuts of jobs in recent weeks.
In its Chapter 11 proceeding Cumulus is seeking to eliminate $600 million in debt. It said this would eliminate substantially all of its remaining debt burden and significantly strengthen its financial position. It filed a “prepackaged” debt-for-equity restructuring in April, and the bankruptcy court quickly signed off on it. The FCC has a say because it must approve station license transfers in such cases.
[Related: “Cumulus Surrenders License of San Francisco’s 560 AM” ]
