If the first major Q2 2024 earnings call for radio forecasts anything, there will again be plenty of digital talk for the next few weeks. While posting a mild decline in revenue, Cumulus Media saw a decent rise in total digital, led by explosive digital marketing growth.
Citing a “a challenging advertising environment,” CEO Mary Berner reported $204.8 million in total revenue – a 2.5% drop in total revenue compared to Q2 2023. Cumulus also faced a substantial net loss of $27.7 million during the quarter, a sharp increase from a net loss of $1.1 million in the same quarter of the previous year.
The earnings call rapidly turned to digital dollars, which now comprise 19% of Cumulus’ revenue at $39.4 million. This is a 5% year-over-year rise.
As mentioned, Cumulus’ digital marketing services grew 24%, with previously radio-only customers using the service jumping 25% from Q2 2024. On the audio side of digital, this was the fourth consecutive quarter of the broadcaster’s podcast revenue rising year-over-year.
In addition to its expanding digital footprint, Berner addressed Cumulus’ reduction of fixed costs by $4 million. This financial maneuvering was further supported by strategic financial operations including the successful completion of its debt exchange offer. The company has also repurchased a portion of its debt due in 2026.
Berner and CFO Frank Lopez-Balboa voiced continued cautious attitude for the future with Q3 revenue expected to fall again, saying that lagging ad spenders have discussed with the company, “when, not if,” they’ll return to previous spending levels.
In a statement outside the call, she said, “Looking ahead, while the advertising outlook remains uncertain, our advertisers continue to be focused on when – not if – they’re going to return to more typical spending levels. Fortunately, thanks to our success at extending our debt maturities, we have time on our side and the flexibility to pursue multiple paths to create shareholder value.”
