ATLANTA - Cumulus Media Inc. (NASDAQ:CMLS) reported third quarter results that narrowly missed analyst estimates, but shares jumped 6.8% as investors cheered strong growth in the company's digital businesses.
The radio broadcasting company posted a net loss of $10.3 million, or $0.61 per share, compared to net income of $2.7 million, or $0.16 per share, in the same quarter last year. Revenue fell 1.8% year-over-year to $203.6 million.
While total revenue declined, Cumulus saw robust 38% growth in its digital marketing services revenue. Overall digital revenue increased 7.5% to $40 million, now accounting for 20% of total company revenue. This helped offset a 5% decline in broadcast radio revenue.
"Given the market challenges, we maintained our focus on what we can control," said CEO Mary G. Berner. "Specifically, we continued investing to drive growth in our digital businesses, including in digital marketing services which increased revenue nearly 40% in the quarter."
The company reported Adjusted EBITDA of $24.1 million, down from $26.9 million in Q3 2023.
Looking ahead, Berner noted the advertising environment remains uncertain but highlighted Cumulus' "valuable set of assets" to navigate the uncertainty, including its growing digital businesses and extensive local sales capabilities.
Cumulus ended the quarter with $52.2 million in cash and total debt of $673 million.
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