The following is a summary of the Cumulus Media Inc. (CMLS) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Cumulus Media reported Q2 2024 revenue of $205 million, down 2.5% year-over-year.

• EBITDA stood at $25.2 million despite the advertising challenges.

• Cash from operations, excluding costs related to the exchange offer, was $8.3 million.

• Digital businesses continued to be a growth area with a 24% increase in DMS (Digital Marketing Services) revenue.

• Reduced fixed costs by $4 million during the quarter, improving operating leverage.

Business Progress:

• Cumulus Media is focusing on increasing digital revenue streams, particularly through expanding its digital sales force and product portfolio like Cumulus Boost.

• Revenue from digital marketing services grew by 24%, driven by investments in expanding the digital sales force.

• Customer count and retention improved, with a 20% year-over-year increase in customers and a 9% improvement in retention.

• Increased the number of radio clients who now purchase DMS by 25%.

• Made strategic moves to strengthen the balance sheet, including extending debt maturities to 2029 and reducing principal debt, benefiting from improved financial flexibility.

Opportunities:

• Expanding digital sales capabilities and product offerings represent a significant growth opportunity, especially in digital marketing services where Cumulus is seeing robust growth and increased client engagement.

• Growth in digital audiences and capabilities may enhance overall revenue potential, especially as the company better controls and optimizes asset monetization.

Risks:

• The continuing challenging macroeconomic environment, including high interest rates, affects national advertising budgets, posing a risk to expected revenue growth. Areas such as the financial services, recruiting, and home improvement sectors are notably impacted.

• Uncertainty in the national advertising outlook remains a concern for future quarters.

More details: Cumulus Media IR

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