Thursday, February 14, 2019

Cumulus Media (CMLS)

A win,win.

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, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

RATING: OUTPERFORM

• Strengthening its position. Two transactions were announced that will 1) reduce debt and 2) strengthen its market position. The company sold 6 stations for a combined price of $103.5 million, at an estimated 17 times cash flow. Separately, it swapped stations with Entercom (ETM: Not Rated) to have a developed radio cluster in Indianapolis. 
• Moves viewed favorably. The company has a significant number of under penetrated markets. As such, swapping out of those markets for developed station clusters should increase total company margins. Furthermore, asset…
  
  
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