Monday, November 04, 2024
Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
In-line Q3 results. The company reported revenue of $203.6 million and adj. EBITDA of $24.1 million, in-line with our estimates of $203.3 million and $24.8 million, respectively. Its digital businesses, now 20% of total revenues, was the highlight of the quarter, up 7.5% from the prior year. Political advertising was a little softer than expected, $4.4 million versus our $5.5 million estimate.
National/Network remains lackluster. National advertising is over 50% of total company revenues and carries very high margins. A recovery in National/Network will be key toward improved company fundamentals. Management indicated that National advertisers appear to be hesitant to spend, possibly due to economic uncertainty and concerns over the upcoming presidential elections.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
