Cumulus Media (CMLS) – Green Shoots Wither Amidst Economic Uncertainty


Monday, August 05, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mixed Q2 results. The company reported revenue of $204.8 million, slightly lighter than our expectations of $206.2M. Due to cost cuts, adj. EBITDA was $25.2 million, finishing ahead of our estimates by $2.1M. Digital revenues advanced 5%, but was slower than the 7% in the first quarter. 

Lackluster pacing outlook. Management indicated that third quarter revenue pacing is disappointingly down low single digits, in spite of the anticipated influx of Political advertising. We believe that spot advertising is down mid single digits, with Network likely to be down double digits, similar to the second quarter. 


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*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. 

Cumulus Media (CMLS) – Advertising Remains Choppy


Monday, May 06, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 results. The company reported revenue of $200.5 million, which was in-line with our estimate of $200.0 million. Adj. EBITDA in the quarter was $8.4 million, in line with our estimate of $8.0 million. Notably, the company announced the completion of its favorable debt swap, which should alleviate near term refinancing concerns for investors.

Solid digital results. Notably, in Q1 the company’s digital segment grew revenue by 7% from the prior year period. The digital revenue growth was largely attributed to its digital marketing services business, which increased revenue by 25% from the year earlier period. 


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*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. 

Cumulus Media (CMLS) – Likely To Complete Debt Swap


Monday, April 22, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Amended debt swap. Upon pressure from the majority of its debt holders, the company amended the terms of its debt swap, decreasing the discount on the debt from 80% to 94%, but also decreasing the interest rate from the previous plan of 8.75% to 8.0%. This plan for the debt conversion appears likely to be completed given that it is estimated that 90% plus of the holders have agreed to the terms. The company needs only 95% of its lenders to agree to the new terms by May 1 to complete the conversion. 

Lengthens maturities. The new debt will extend maturities from 2026 to 2029, providing a large runway for the company to execute its growth initiatives and debt reduction efforts. 


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*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. 

Cumulus Media (CMLS) – A Foggy View For 2024


Wednesday, February 28, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Meets expectations. The company reported revenue of $221.3 million, which was in-line with our estimate of $220.6 million. Adj. EBITDA in the quarter was $22.8 million, beating our estimate of $20.5 million by 11.2%. Notably, digital revenues performed strongly in the quarter, growing 5.0% from the prior year period. 

Q1 off to a lackluster start. Management provided total company advertising pacings to be down low single digits in the first quarter. While this is a significant sequential improvement from the 11.9% decrease in Q4 (which reflected the absence of Political), it is lackluster. The first quarter does not benefit from Political advertising, but the lackluster, high margin core and Network advertising will take a toll on margins. As such, we are lowering our Q1 revenue and adj. EBITDA estimates. 


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*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. 

Cumulus Media (CMLS) – Reaches For Its Pill Box


Friday, February 23, 2024

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Announces a “poison pill.” Cumulus Media adopted a limited-duration shareholder rights plan with the goal of discouraging an investor from increasing its stake beyond 15% of total shares outstanding. We view the move as shareholder friendly given that it prevents the investment group from a “creeping,” opportunistic takeover of the company at depressed stock valuations. 

What does the pill do? The plan is to issue one right for each share of Class A and Class B common stock as of the close of business March 4, 2024. The right will become exercisable if any person or affiliate group acquires 15% or more of the company’s stock. Each right holder will be able to acquire shares at a 50% discount or exchange the right for common stock. The move would significantly dilute the investor’s interest and make a takeover of the company prohibitively expensive. 


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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. 

As Legacy Media Declines, Radio Stands Out – And New Players Emerge

The media landscape is rapidly shifting, with many legacy formats like pay TV seeing accelerating declines. But amid this turmoil, radio has showed surprising resilience according to a recent report. Terrestrial radio revenue and listenership has held relatively steady over the past decade even as cable TV crumbled.

This contrast highlights radio’s enduring role delivering localized, personality-driven and interactive content. While digital disruption has hindered other mediums, broadcasters see internet streaming and podcasts as opportunities to expand radio, not threats. Already, leading players are blending new digital formats with traditional over-the-air offerings.

The stubborn stability of radio presents a growth opportunity for investors amid the broader challenges facing legacy media. Traditional TV and print advertising revenue continues falling sharply, down 18% and 14% respectively in 2023 per GroupM estimates. But radio ad spending is only projected to slip 6% this year.

Plus, radio has room to run just to regain pre-pandemic ad levels. Industry leader iHeartMedia saw a 23% decline in broadcast revenue from 2019 to 2023. As the ad market rebounds post-Covid, radio looks relatively attractive compared to more distressed legacy formats.

This backdrop has powered a radio resurgence among new industry entrants spotting untapped potential. Direct Digital Holdings, which went public in 2022, and focuses on bringing digital marketing services to the marketplace.

Direct Digital believes this digital model can drive growth even as terrestrial broadcasting plateaus. The company aims to capture ad budgets shifting online through its provision of website, social media and other digital services to small businesses alongside traditional radio spots.

Another radio-centric new media play, Cumulus Media, is the country’s third largest radio broadcaster, reaching over 250 million monthly listeners nationwide. The company aims to grow by broadening its podcast portfolio and expanding digital marketing.

Cumulus sees its vast broadcast reach as a foundation to build a larger digital advertising presence. Its extensive owned-and-operated radio station network provides proprietary access to a loyal listener base that rivals tech platforms. The company is positioning itself as the radio industry’s digital transformation leader.

Radio’s resilience indicates it retains inherent competitive advantages that persist through technological changes. Broadcasters recognize and leverage their unique strengths even as they adapt business models. The localism and personality that define radio continue driving engagement.

Plus, radio’s cost structure is finely tuned after a century on the air. Mature players keep tight control of expenses and operate profitably on thinner margins than many digital media outlets. This helps incumbents squeeze more value from legacy radio as they make measured moves into emerging formats.

Investors must still approach new radio-centered media endeavors with eyes wide open. Industry ad revenues remain under pressure. Music streaming and podcasts pose competition for listeners’ time. Consolidation carries integration risks and may face regulatory hurdles.

But traditional radio has survived the disruptive forces that felled newspapers and gutted cable TV. This time-tested durability, combined with digital growth prospects, makes radio-oriented media a relatively bright spot for investors in a tumultuous industry.

Backed by resilient legacy radio assets and focused digital strategies, companies like Direct Digital and Cumulus Media, and many others, offer upside potential. Though uncertainty remains, their radio footholds provide a stable base absent in other legacy media formats ravaged by technological change.

For investors seeking growth media plays beyond tech giants, radio’s lingering relevance points to pockets of opportunity. New digital/broadcast hybrid models show promise for revitalizing radio’s mature but enduring advertising business. With the right vision and execution, radio-centric firms could unlock more value and continue this legacy medium’s surprising success story.

Take a look at more emerging media companies by taking a look at Noble Capital Markets’ Director of Research Michael Kupinski’s coverage universe.

Cumulus Media (CMLS) – Highlights From Noblecon19: A National Recovery Play


Tuesday, December 19, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noblecon19. On December 4th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Frank Lopez-Balboa, CFO, highlighted the company’s digital growth initiatives, debt reduction focus and provided insight into the current advertising environment. A replay of the presentation can be viewed here: https://www.channelchek.com/videos/cumulus-media-noblecon19-replay.

Digital growth initiatives. Management highlighted its digital growth strategy and key drivers for podcasting and digital marketing services (DMS) growth. Importantly, 50% of digital revenues are derived from national adverting, thus an improvement in the national advertising environment would positively impact digital revenue. Notably, the company has increased its focus on growing its hyper-local Digital Marketing Services business, a development we view favorably.


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*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. 

Cumulus Media (CMLS) – In The Midst Of The Advertising Trough


Monday, October 30, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

In-line quarter. Revenues of $207.4 million, down 11.2% from year earlier levels, were in line with our $207.8 million estimate. Costs came in lower than expected, and, as a result, adj. EBITDA was 14.1% better than expected at $26.9 million versus our $23.6 million estimate. 

Green shoots? The company completed a successful upfront with strong Network sales. We believe that cancellations will be much less than the 50% that it experienced last year, which should provide for the prospect for a meaningful turnaround in its high margin Network business in 2024. 


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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. 

Cumulus Media (CMLS) – Some Hopeful Signs Total Revenues Are Stabilizing


Monday, July 31, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q2 operating results. The company reported quarterly revenue of $210.1 million, in line with our estimate of $208.3 million.  While National/Network advertising remains weak, Local advertising has some greenshoots particularly with Digital Marketing Services revenue. Adj. EBITDA in the quarter was $28.7 million, beating our estimate of $21.8 million by an impressive 32%, excluding a $2 million nonrecurring benefit. The adj. EBITDA surprise was attributed to aggressive cost cutting efforts. 

Positive DMS outlook. Digital Marketing Services performed strongly, with revenue up 21% in the latest quarter. Management believes there is significant untapped growth potential in local DMSand is tripling its salesforce. Management anticipates an increase of 3x to 4x its current revenue run rate of $40 million in the next few years. 


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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. 

Cumulus Media (CMLS) – Steps Up To The Plate Again


Monday, May 15, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Announces tender offer. On May 12, the company announced that it commenced a modified Dutch auction tender offer to purchase up to $10 million of shares of its Class A common stock. The offer is being made under the company’s previously announced $50 million share repurchase program. The offer begins on May 12, and will expire on June 9, 2023 at 12:00 A.M EST. 

Terms of the Offer. The offer allows shareholders to decide how many shares they are willing to sell at a given price. The price range in the offer is $3.25 to $2.85 per share, and is not conditioned on any minimum amount of shares being tendered. All shares purchased in the offer will be purchased at the same price regardless of tendered price. Additionally, the company reserves the right to change the per share purchase price, and offer an additional 2% of its outstanding Class A common shares without amending or extending the offer. 


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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. 

Cumulus Media (CMLS) – Still Looking For The Advertising Trough


Friday, April 28, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Meets Q1 expectations. The company reported Q1 revenue of $205.7 million, in line with our previously lowered estimate of $206.4 million. National advertising revenues remained weak in the quarter, largely attributed to persistent macro economic headwinds. Adj. EBITDA of $10.3 million beat our estimate, which we believe was the lowest on the Street, a result of the company’s cost cutting initiatives and healthy growth of digital revenues.

Weak Q2 pacings. Q2 revenues are expected to be impacted by weakening Local advertising, down 4% in Q1 and pacing down 7% in Q2, in addition to double digit declines in National. A bright spot is digital marketing services (DMS), pacing up double digits in Q2. Total company revenue pacings are down low double digits for Q2.


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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. 

Cumulus Media (CMLS) – Likely A Few Rough Quarters Ahead


Friday, February 24, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Better than expected Q4.  The company reported Q4 revenue of $251.3 million, roughly flat with the year earlier quarter. Excluding political revenue of $8.3 million, Q4 revenue was down a modest 3% from the prior year period. Adj. EBITDA of $42.7 million was down a modest 1.2%. Both Q4 revenues and Adj. EBITDA beat our expectations, by 4.3% and 13.9%, respectively.

National underperformed.  Excluding Political advertising, National advertising, including Network, decreased %. Cumulus is heavily weighted to National/Network advertising, accounting for 45% of total revenues. For many in the industry, National is a more modest 12% to 15% of total advertising.


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*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. 

Cumulus Media (CMLS) – A Tough Year On The Horizon


Wednesday, January 25, 2023

Cumulus Media (NASDAQ: CMLS) is an audio-first media 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 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Tough comps ahead. The conventional investment scenario is to expect a weak first half of 2023 and a stronger second half. However, we believe the absence of high margin political advertising and the dissolution of the WynnBet partnership calls for a more conservative outlook for 2023. In our view, there are troubling near term signs for the company that have led us to take a more sober outlook for 2023.

Economic headwinds and National advertising. Weakness in National advertising continues to be prevalent as macroeconomic headwinds persist. Additionally, we believe Local advertising is starting to show weakness.


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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.