Cumulus Q4 Net Revs Down 1.2% to $218.6 Million

RADIO ONLINE | Thursday, February 27, 2025

Cumulus Media

Cumulus Media reported its fourth-quarter and full-year 2024 financial results, reflecting continued pressure on traditional broadcast revenue but growth in digital operations and cost-cutting measures. For the fourth quarter of 2024, Cumulus reported $218.6 million in net revenue, a 1.2% decline compared to the same period in 2023. The company's Adjusted EBITDA improved by 9.8% to $25.0 million, despite revenue challenges.

Broadcast radio revenue remained under pressure, with spot revenue down 1.3% and network revenue declining 5.6% year-over-year. However, digital revenue increased 1.9% to $40.3 million, and the company's streaming impressions grew 15%.

Cumulus also recorded a fourth quarter net loss of $231.1 million, significantly larger than the $98.1 million loss in Q4 2023. This was primarily driven by a $224.5 million non-cash impairment charge, reflecting industry-wide valuation pressures.

For the full year, Cumulus generated $827.1 million in net revenue, representing a 2.1% decline from 2023. Digital revenue provided a bright spot, rising 5.3% to $154.2 million, now accounting for 19% of total company revenue. Digital marketing services led the growth, increasing 27% year-over-year.

The company posted a net loss of $283.3 million, compared to $117.9 million in 2023, with impairment charges weighing heavily on results. Adjusted EBITDA fell 8.8% to $82.7 million.

In response to industry challenges, Cumulus focused on cost-cutting initiatives, achieving $43 million in annualized fixed cost reductions, with $15 million realized in 2024 and the remainder expected to benefit 2025. The company also refinanced its debt, reducing near-term maturities and improving liquidity. As of December 31, 2024, Cumulus held $63.8 million in cash and had an undrawn $125 million credit facility.

Mary G. Berner, President and CEO of Cumulus Media, acknowledged ongoing economic and secular headwinds, particularly an industry-wide slowdown in local radio advertising.

"In response, we doubled down on investing in growth areas, particularly in our digital marketing services business, which is pacing up 30% in Q1," Berner said. She also pointed to efforts to refine broadcast sales strategies and expand digital offerings.

Despite challenges in traditional radio, Cumulus continues to shift its focus toward digital growth, operational efficiencies, and new revenue opportunities as it navigates an evolving media landscape.

Looking ahead, Cumulus aims to leverage its digital growth, optimize its broadcast offerings, and maximize cost efficiencies to navigate the uncertain industry environment.