Cumulus CEO Mary Berner said Wednesday morning that the company turned in strong first quarter results, experienced robust revenue growth, has the best company balance sheet in a decade and is solidly in growth mode.
Revenue for the company grew 15% in the first quarter of 2022 with spot revenue up 13%, digital up 18% and podcasting up 20%. Digital now represents 14% of all revenue at the company, compared to 7% in 2019. Total revenue in the quarter was $232 million.
Berner also announced a $50 million share repurchase program would be rolled out soon and net leverage is down to 3.9X with a goal of 3.5X on target by the end of this year.
A company press release stated that “our confidence in the Company’s growth prospects is also evident among equity research analysts who collectively maintain an average price target of $26.50/share.” That’s about $10 per share above the offer reportedly made for the company by Jeff Warshaw, which the Cumulus Board of Directors has rejected (see next story).
The auto category continues to be weak for Cumulus while professional services, live entertainment and restaurant and travel are the stronger categories for the company. Berner also said revenue is being impacted by supply chain issues and listening, especially in larger markets, continues to be impacted by the COVID-19 pandemic.
