With Wall Street expecting a big loss, Cumulus Media reported its first-quarter results for 2023 on Thursday morning. While net revenue for the quarter declined by 11% to $205.69 million, it did manage to surpass the analysts’ estimate of $203.13 million. Despite beating the projections, Cumulus experienced a widened net loss of $21.47 million. Adjusted EBITDA also decreased to $10.33 million from $31.21 million.
Cumulus CEO Mary Berner highlighted some positive aspects of the quarter, including the growth of digital marketing services revenue by over 23% and the completion of the $7.25 million sale of WFAS in Westchester County, NY. The company used Q1 to continue repurchasing shares, retire debt, and implement $10 million in annualized cost reductions.
However, Berner acknowledged “national headwinds” in ad spend were causing problems, along with the loss of political revenue and the folding of WynnBET, which resulted in revenue and adjusted EBITDA declines.
Citing a solid balance sheet and current liquidity, Cumulus believes it is well-positioned to weather the current storm and expects a strong rebound when the market eventually recovers.
