Cumulus Media has released its preliminary financial results for Q1 2024. The company anticipates reporting net revenue between $199.0 million and $201.0 million, a net loss ranging from $14.9 million to $13.4 million.
This represents a decrease in net revenue by 2.3% to 3.3% from the same period in 2023, but a reduction in net loss by 30.5% to 37.5%. These figures reflect the impact of a $14.8 million non-operating gain from the sale of Broadcast Music Inc. in February.
In comparison, the first quarter of 2023 benefited from a $7.1 million gain from the sale of WFAS.
In an added announcement, Cumulus revealed significant updates to its ongoing Exchange Offer. The company’s subsidiary, Cumulus Media New Holdings, is exchanging all its existing 6.750% Senior Secured First-Lien Notes due 2026 for new 8.000% Senior Secured First-Lien Notes maturing in 2029.
This adjustment modifies both the interest rate and extends the maturity of these notes by three years to July 1, 2029.
As part of this revised Exchange Offer, holders who tender their old notes before the newly extended deadline, now set for midnight ET on May 1, will receive $940 in principal amount of new notes for each $1,000 of old notes. This adjustment aims to enhance terms for note holders and align with current financial strategies.
Additionally, the Exchange Offer includes a proposal to convert old term loans under a 2019 credit agreement into new senior secured term loans, introducing changes to improve Cumulus’s financial structure and liquidity.
Cumulus will fully report its first quarter results on May 3.
