Fresh off what it characterizes as a “successful” refinancing effort — in which it moved the maturation date of about $326 million in debt from 2026 to 2029 — Cumulus Media on Friday announced its earnings results for the first quarter of 2024, reporting total revenue of $200 million.
That was down 2.7% versus a year ago, but in line with previously issued guidance.
The company pushed further into the digital realm in Q1, increasing its digital marketing services revenue by 25%, with total digital revenue up 7%.
In a news release, CEO Mary G. Berner touted the refinancing of the company’s capital structure and an enhanced asset-based lending (ABL) facility, which will enhance Cumulus’ ability to obtain more credit.
“This is an excellent outcome for the Company especially given the generally difficult financing environment for legacy media companies,” she said. “Specifically, we extended maturities to 2029, reduced the principal amount of outstanding debt by approximately $33 million, obtained attractive interest rates, maintained a structure free of financial maintenance covenants, and increased capacity on our ABL Facility by 25%.
“The importance of these transactions is underscored by the continuing choppiness in the macroeconomic environment,” Berner continued. “While our Q1 revenue was in line with guidance and a marked improvement from 2023 trends, it is also reflective of the uncertainty that continues to weigh on advertisers. With the advertising environment still unsettled, these new terms provide us additional time and flexibility to execute against our key business priorities — accelerating digital growth, reducing fixed costs, and continuing to de-lever our balance sheet — each of which is foundational to our ability to build long-term shareholder value.”
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