These are challenging times at Cumulus, and financial results for the second quarter tell the story. The word “down” appears a lot in its summary.
The numbers “underscore the substantial challenges that we must overcome,” said President/CEO Mary Berner. But she said the company’s turnaround strategy “is gaining measurable traction with significant ratings growth, improved employee engagement, reduced turnover and enhanced operational effectiveness.”
Cumulus Media Inc. has 452 radio stations in 90 U.S. media markets; about 8,200 broadcast radio stations affiliated with the Westwood One network; and various digital channels.
It said that in the three-month period, its net revenue was $287.2 million, down about 4% from the same period a year ago; net income was $1.1 million, down about 91%, and adjusted EBITDA of $63.2 million was down about 22%.
In the quarter, about three-fourths of total revenue came from its radio station group, where revenue was pretty much flat; the rest was from Westwood One, where revenue was off about 14%. The Westwood One arm saw an 88% drop in net income in the quarter compared to a year prior.
In the first six months of 2016, the company’s overall net revenue was $555.7 million, down 2.6%. It posted a net loss of $13.4 million and adjusted EBITDA of $105.1 million, down 16.2% from a year ago.