Cumulus Media(US:CMLS)2025-05-01 13:32Financial Data and Key Metrics Changes - Total revenue decreased by 6.4%, and down 3.7% excluding political and Daily Wire impacts, aligning with previous pacing commentary [16] - EBITDA for the quarter was $3,500,000, reflecting ongoing challenges in the advertising market [16] - Digital revenue grew by 6% overall, or 20% excluding the loss of the Daily Wire relationship [16] Business Line Data and Key Metrics Changes - Digital Marketing Services (DMS) revenue increased by 30% in Q1, driven by a 41% increase in total customers and a 16% increase in average campaign order size [7][16] - Podcasting revenue was down 13% when including the Daily Wire, but up nearly 40% when excluding it [9] - Streaming revenue increased by 4% during the quarter, benefiting from in-house sales management [10] Market Data and Key Metrics Changes - Advertising pullbacks were noted in automotive, retail, and consumer packaged goods (CPG) categories, while insurance and financial categories showed growth [11][17] - The Beyond Home market business grew by 48% in the quarter, following a 45% growth in the previous quarter [12] Company Strategy and Development Direction - The company is focusing on digital business growth, particularly in DMS, and leveraging its extensive audience reach to partner with nontraditional parties [5][8] - Cost efficiencies are being pursued, with $7,500,000 in additional annualized fixed cost reductions executed [5][13] - The company is exploring AI applications to enhance operational efficiency and customer service [13][14] Management's Comments on Operating Environment and Future Outlook - The macro environment has become more challenging, with tariffs and government spending cuts impacting consumer demand and advertising spending [4] - Pacing is down approximately 10%, or 5% excluding political and Daily Wire impacts, indicating ongoing economic uncertainty [15][18] - The company remains optimistic about potential FCC deregulation, which could positively affect the industry [26] Other Important Information - The company ended the quarter with $53,000,000 in cash and a net debt of $589,000,000 [18] - The company anticipates asset sales to generate between $10,000,000 to $15,000,000 in proceeds this year [28] Q&A Session Summary Question: Were there any programs or content changes in the network side compared to last year? - The network program did not significantly change, and the decline was driven by general market demand weakness [21][22] Question: Can you provide month-by-month revenue performance for the quarter? - Revenue pacing was down mid-single digits, ending slightly over 6% down due to late advertiser orders [24] Question: What are the implications of FCC deregulation and asset sales? - The company is optimistic about FCC deregulation and expects a notice of proposed rulemaking by late summer [26] - Small asset sales occurred in Q1, with a larger land sale in Nashville anticipated [28]