ATLANTA - Cumulus Media (NASDAQ:CMLS), a leading audio-first media company, and TuneIn, a global giant in live audio streaming, have announced the renewal and expansion of their content partnership. The enhanced agreement, effective immediately, ensures that TuneIn's 75 million monthly listeners will continue to have access to Cumulus Media's local sports, news, talk, and entertainment programming.
The updated partnership now includes a sales and supply deal aimed at optimizing digital audio advertising monetization for Cumulus's portfolio of 400 radio stations across 84 markets. This non-exclusive arrangement is set to leverage Cumulus's nationally syndicated content and TuneIn's extensive global reach.
Cumulus's Chief Content Officer, Brian Philips, highlighted the synergy between the two companies, stating that TuneIn's significant global reach aligns with Cumulus's strategy to expand its digital footprint and audience. Philips emphasized the ease with which listeners can discover Cumulus's radio stations and podcasts through TuneIn's platform and its compatibility with over 200 connected devices.
Echoing Philips's sentiments, Rich Stern, CEO of TuneIn, expressed enthusiasm for the continued partnership, which he believes will benefit both companies and their audiences by delivering high-quality content and effective monetization of digital audio advertising inventory.
The partnership not only cements the availability of popular Cumulus stations like WBAP, WLS 890, and KNBR on TuneIn but also underscores the commitment of both entities to extend their reach. TuneIn's service integrates with various connected devices, including smart home devices and vehicles from brands like Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN), ensuring listeners can access content almost anywhere.
The collaboration is based on a press release statement and reflects the ongoing trend of media companies seeking broader distribution and monetization avenues in the digital space. Cumulus Media continues to engage listeners with its diverse programming and advertising solutions, while TuneIn remains a key player in streaming live audio content globally.
In other recent news, Cumulus Media reported a slight dip in revenue for the second quarter of 2024, falling by 2.5% year-over-year to $205 million. Despite this, the company demonstrated resilience by generating $25.2 million in EBITDA and $8.3 million in cash from operations. The shining star was the company's digital marketing services sector, which saw a 24% revenue increase due to new customer acquisitions and larger campaign orders. Cumulus also successfully reduced its fixed costs by $4 million and refinanced its capital structure, extending debt maturities to 2029.
The media giant anticipates an improvement in the network business in the third quarter due to sports-related demand and expects lower interest rates to boost advertising demand across the network and podcast businesses. The company also aims to continue its focus on cost reduction and debt repayment.
However, despite these optimistic projections, the national advertising environment remains challenging with soft demand in certain sectors. Local spot revenue saw a 4% decline, impacted by low consumer demand in key categories. Streaming revenue also fell due to the expiration of a fixed-rate sales contract. Despite these headwinds, Cumulus remains committed to its capital allocation priorities, including debt reduction, and has lowered its CapEx guidance for the year to $25 million.
InvestingPro Insights
As Cumulus Media (NASDAQ:CMLS) expands its partnership with TuneIn, investors should consider some key financial metrics and insights from InvestingPro. The company's market capitalization stands at a modest $20.49 million, reflecting its current position in the competitive media landscape.
InvestingPro Data reveals that Cumulus Media's revenue for the last twelve months as of Q2 2024 was $833.62 million, with a gross profit margin of 60.43%. However, the company has experienced a revenue decline of 7.43% over the same period, which may be a factor in its strategic moves to enhance digital monetization through partnerships like the one with TuneIn.
Two relevant InvestingPro Tips highlight potential challenges and opportunities for Cumulus Media:
1. The company is operating with a significant debt burden, which could impact its financial flexibility as it pursues growth initiatives.
2. Management has been aggressively buying back shares, potentially signaling confidence in the company's future prospects despite current market challenges.
These insights are particularly relevant to the article, as they provide context for Cumulus Media's strategic decisions. The partnership with TuneIn could be seen as a move to leverage digital platforms for growth and improved monetization, potentially addressing the revenue decline and debt concerns.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips that could provide further insight into Cumulus Media's financial health and market position.
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