Thursday, May 06, 2021
Cumulus Media Inc. (CMLS)
An Ebullient Advertising Picture Emerges
CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 overachieves. Q1 revenues of $201.7 million exceed our $185.0 million estimate on stronger than expected Spot and Digital revenue. Cash flow, as measured by adj. EBITDA, was better than expected due to stronger revenues and expense reduction, $8.9 million versus our loss estimate of $650,000.
Q2 pacings appear encouraging. The tone of Radio advertising has significantly improved, with Q2 pacing up a strong 35%. We believe that pacings will further improve throughout the quarter and our 51% Q2 revenue growth estimate appears achievable. We are raising our Q2 adj. EBITDA estimate from $21.1 million to $24.6 million to reflect better cost savings …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.