Cumulus Posts Q1 Revenue Decline of 12%

Cumulus Media revenue fell about 12% in the first quarter compared to the same period a year earlier, though it reduced its losses by almost 50%. The company is the third-largest commercial U.S. radio group by revenue and is in the process of its second Chapter 11 reorganization in nine years. Cumulus owns 394 radio stations, the Westwood One audio network and the Cumulus Podcast Network. [“Cumulus Media to Go Private in Debt-for-Equity Restructuring”] “The court’s recent approval of our reorganization plan marks a pivotal milestone in strengthening our financial foundation and positioning the company to compete in the evolving media landscape,” said President/CEO Mary Berner. “While we await FCC approval of the plan, we remain focused on leveraging our core strengths to drive long-term value creation.” Its net revenue was $164.4 million, down from $187.3 million a year earlier. It lost $16.9 million compared to $32.3 million in Q1 last year. Broadcast radio revenue was down about 19% to $100.7 million. Digital revenue fell 8% to $33.5 million. In 2018 the company concluded a Chapter 11 reorganization to alleviate $1 billion in debt. With the approval of its lenders, Cumulus now is seeking to eliminate another $600 million in debt. The signed lenders will have 95% control of the company. Cumulus also seeks to shed several tower sites and studio facilities. Business observer Jerry Del Colliano has written that once the FCC approves the agreement, the Cumulus board is expected to be reconstituted with new members chosen by the lender/owners. The post Cumulus Posts Q1 Revenue Decline of 12% appeared first on Radio World. [TheTopNews] Read More.