Category: Media and Marketing

FCC Lifts Foreign Ownership Rules. The FCC recently lifted the Foreign Ownership rules from 25% to 100%, a significant “win” for Cumulus. In the past, Foreign companies were prohibited from owning a large stake in U.S. based media companies.

What does this mean? Cumulus issued warrants to debt holders as a part of its bankruptcy reorganization in 2018. The company did not certify that the special warrants were 100 percent U.S. owned and controlled. The recent FCC move allows those companies to convert the warrants into voting common stock. Upon the execution of the warrants, Cumulus estimated that foreign entities would control 34 percent on a voting basis and 31 percent on an equity basis. This move also allows…

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Adjusting 2020 estimates. This report reflects our adjustments to our 2020 estimates, which reflects higher costs to support the prospect for faster revenue growth and margin improvement in 2021.

Duplicate expenses in 2020. There is spending to develop news feeds, international financial data feeds, analytics, and mutual fund information. For now, it is carrying the costs of development, combined with the costs of third party vendors. As such, we expect margins to improve in 2021 as development costs decline and…

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Adjusting 2020 estimates. This report reflects our adjustments to our 2020 estimates, which reflects higher costs to support the prospect for faster revenue growth and margin improvement in 2021.

Duplicate expenses in 2020. There is spending to develop news feeds, international financial data feeds, analytics, and mutual fund information. For now, it is carrying the costs of development, combined with the costs of third party vendors. As such, we expect margins to improve in 2021 as development costs decline and…

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Solid Q1. First quarter results were largely in line with expectations in spite of Covid 19 that wrecked the economy and many businesses. Revenues increased 3.3%, in line with our expectations. Adj. EBITDA was lower, $191,000 versus our $414,000 estimate, largely due to investments into new products that are expected to be rolled out in

Management clearly was hoping for a better quarter. The company was impacted by Covid as some clients paused services and some even shuttered. Even though companies appear more cautious, Quotemedia appears to be benefiting from a shift toward work from…

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Beats on revenue. Q1 revenues of $40.5 million was better than our $39.5 million estimate, in spite of the Covid impact, estimated to have adversely affected revenues by $2 million. Costs were a little higher than expected, and, as such, adj. EBITDA was shy of our loss of $1.7 million, coming in at a loss of $2.4 million.

Encouragingly, maintaining quarterly outlook. The Covid impact appears to be relatively modest, hitting its marketing services business, but not its contact center or market fulfillment businesses. Our revenue estimates have been adjusted for the exit of its direct mail operations to Summit Direct Mail, which will save $2 million to $3 million in annualized savings. Adj. EBITDA is expected to be positive in coming quarters for…

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Solid Q1. First quarter results were largely in line with expectations in spite of Covid 19 that wrecked the economy and many businesses. Revenues increased 3.3%, in line with our expectations. Adj. EBITDA was lower, $191,000 versus our $414,000 estimate, largely due to investments into new products that are expected to be rolled out in

Management clearly was hoping for a better quarter. The company was impacted by Covid as some clients paused services and some even shuttered. Even though companies appear more cautious, Quotemedia appears to be benefiting from a shift toward work from…

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Beats on revenue. Q1 revenues of $40.5 million was better than our $39.5 million estimate, in spite of the Covid impact, estimated to have adversely affected revenues by $2 million. Costs were a little higher than expected, and, as such, adj. EBITDA was shy of our loss of $1.7 million, coming in at a loss of $2.4 million.

Encouragingly, maintaining quarterly outlook. The Covid impact appears to be relatively modest, hitting its marketing services business, but not its contact center or market fulfillment businesses. Our revenue estimates have been adjusted for the exit of its direct mail operations to Summit Direct Mail, which will save $2 million to $3 million in annualized savings. Adj. EBITDA is expected to be positive in coming quarters for…

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Q1 disappoints given impact from Covid. Total revenues of $227.9 million was below our $250.7 million estimate. We believe that the majority of the variance was due to the cancellation of the March Madness, NCAA Tournament, due to Covid 19. Operating cash flow (Adj. EBITDA) was $27.7 million versus our $34.3 million estimate.

Radio takes a big hit. Radio broadcasting has been uniquely hit given stay at home rules that limit driving in cars where listenership largely happens. The second quarter spot advertising decline is expected to be roughly 50%. We are lowering our Q2 revenue and cash flow estimates and full year 2020 and 2021 estimates to reflect a…

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Q1 disappoints given impact from Covid. Total revenues of $227.9 million was below our $250.7 million estimate. We believe that the majority of the variance was due to the cancellation of the March Madness, NCAA Tournament, due to Covid 19. Operating cash flow (Adj. EBITDA) was $27.7 million versus our $34.3 million estimate.

Radio takes a big hit. Radio broadcasting has been uniquely hit given stay at home rules that limit driving in cars where listenership largely happens. The second quarter spot advertising decline is expected to be roughly 50%. We are lowering our Q2 revenue and cash flow estimates and full year 2020 and 2021 estimates to reflect a…

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Q1 not a surprise. Q1 was slightly lower than our expectations, but not surprisingly so. In our view, investors largely expected Q1 to have had some impact from the mitigation efforts of CoVid 19. Q2 will reflect the worse quarter of the year. But, there are encouraging revenue trends that support a constructive view of the second half 2020.

National business appears to be performing better than expected. We believe that Stitcher, after an initial disruption, is back on track for a revenue rebound in Q2. In addition, Newsy appears to be benefiting from the demand for…

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Q1 not a surprise. Q1 was slightly lower than our expectations, but not surprisingly so. In our view, investors largely expected Q1 to have had some impact from the mitigation efforts of CoVid 19. Q2 will reflect the worse quarter of the year. But, there are encouraging revenue trends that support a constructive view of the second half 2020.

National business appears to be performing better than expected. We believe that Stitcher, after an initial disruption, is back on track for a revenue rebound in Q2. In addition, Newsy appears to be benefiting from the demand for…

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Q1 results better than expected. Revenues were $64.2 million versus our $62.2 million estimate and cash flow (adj. EBITDA) was $9.6 million versus our $7.2 million estimate. The largest variance to our estimates was better-than-expected TV revenues, $39.2 million versus our estimate of $37.4 million.

Q2 pacings appear in line with previously lowered expectations, outlines significant cost reductions. Advertising trends appear in line with our previous expectations. Management outlined aggressive cost cutting measures that is expected to reduce Q2 costs by $6 million. The cost reductions may be kept in place if revenues do not recover, implying $20 million in…

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Q1 largely in line, beats our Adj. EBITDA estimate. While Q1 revenues were lighter than expected ($534 million versus $542 million), the company overachieved our Adjusted EBITDA estimate ($168 million versus $163 million). The revenue variance was due to the fall-off in advertising in March as mitigation efforts of the Coronavirus took hold.

Q2 appears better than many. Core advertising appears to be down roughly 33%, slightly better than some peers that have indicated Q2 core to be down 35% to 40%. Company reaffirms Political advertising expectations in the range of…

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