Movers and SHAKERS
Cumulus Media Inc. (CMLS)
Fixed Cost Reduction in 2022 Is A Big Deal
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.
Q2 overachieves EBITDA expectations. Second quarter revenues were roughly in line with expectations, $224.7 million versus our $221.3 million estimate. But, the company exceeded our adj. EBITDA expectations, $36.9 million versus our $24.6 million, on significantly lower than expected costs.
Expense cuts provides cash flow visibility. Management guided full year 2022 adj. EBITDA to a range of $175 million to $200 million, above our $149 million estimate. Management indicated that it will achieve $70 million in fixed cost savings in 2022 versus the previous guidance of $50 million. We are raising our full year 2021 and our full year 2022 adj. EBITDA estimates, while largely maintaining ...
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.