“The pandemic, unfavorable secular trends, and a significant downdraft in national advertising,” were all heavy factors in Cumulus Media CEO Mary Berner’s address of the company’s Q4 and full-year 2024 earnings report, which saw a $283.3 million net loss.
Berner addressed the containing headwinds facing the company, but focused on areas of growth – namely the broadcaster’s digital sales expansion. CFO Frank Lopez-Balboa reported total net revenue of $827.1 million in 2024, marking a 2.1% decline year-over-year. Digital revenue, however, grew 5.3% to $154.2 million, now accounting for 19% of total revenue.
Cumulus’ $283.3 million 2024 loss finished more than double the $117.9 million loss in 2023. The increase was largely due to a $224.5 million pre-tax non-cash impairment charge, primarily related to FCC-related costs, compared to $65.3 million in 2023.
Cumulus’ Digital Marketing Services business was a highlight of the report, growing 27% year-over-year and becoming the company’s largest digital segment. According to Berner, 30% more radio-only advertisers purchased digital services in 2024, while digital-only accounts increased by 31%.
Podcasting remained an important part of Cumulus’ digital strategy, but revenue saw setbacks following The Daily Wire’s decision to take its ad sales in-house. Excluding that change, podcast revenue grew over 35% in 2024. However, the departure of Dan Bongino – who was appointed Deputy Director of the FBI – is expected to create an additional $15 million revenue loss in 2025.
On the broadcast radio side, Cumulus saw continued declines in national and local ad spending, though sports programming remained a strong performer. The company achieved all-time high Super Bowl-related revenue and Beyond Home Market sales grew 35% year-over-year.
All factors combined have led Cumulus to aggressive cost-cutting initiatives. “Through a combination of reductions in force, contract management and renegotiations, and continuing to adapt the way we operate the business, we generated approximately $35 million of the annualized net cost reductions in Q4, which are on top of the nearly $128 million of cost reductions that we already had made from 2019 through Q3,” said Berner.
Looking ahead, Q1 2025 revenue is pacing down mid-single digits. Despite these challenges, Berner remained optimistic about Cumulus’ long-term strategy.
“Looking ahead, we will remain laser-focused on mitigating the impacts of broadcast radio trends through cost reductions and investment in our digital business. Additionally, as we reimagine our business for the long term, we will continue to unlock additional opportunities that leverage our many key assets,” she said in closing.
