Cumulus Revenues, Earnings Fall In Fourth Quarter
March 10, 2016 at 3:27 PM (PT)
CUMULUS MEDIA fourth-quarter revenue fell 6.2% year-to-year to $308.8 million, with Adjusted EBITDA off 30.3% to $63 million. Earnings per share fell from 2 to -2 cents. Broadcast advertising sales were off 0.5% to $290,445,000, with digital ad sales down 42.7% (blamed on the end of RDIO) to $10,000,000 and political advertising falling 78.3% to $2,321,000. Local sales slipped 0.6% to $171,523,000, while national fell 10.5% to $24,912,000 and network sales rose 2.8% to $94,010,000.
The company blamed the poor performance on "declining ratings in certain key markets" that caused national spot revenue to dip, as well as iHEARTMEDIA's shift towards concentrating on national advertising clients and "national advertisers seeking more digital advertising components than we are currently able to fulfill." Losses in local ad sales were mitigated to an extent through local events and talent endorsement revenue, and local clients being less sensitive to ratings or digital.
CEO MARY G. BERNER said, "Our continued underperformance in the fourth quarter underscores the amount of work required to address the significant challenges that we face. However, by quickly establishing and beginning to implement our operational turnaround initiatives -- enhancing our operational blocking and tackling, instituting a strong and positive culture, and driving improved ratings -- we believe that, with time, we can stabilize the business and ultimately provide a foundation for growth."