The decline in Q3 revenue is being blamed on a soft advertising environment and political comps. Over 70% of Cumulus’ revenue comes from its radio stations which saw revenue drop from $206.1 million in Q3 2016 to $202.9 million in Q3 this year. Excluding political, radio was down 1.2%. Cumulus took in $9 million of political advertising in 2016.
The company is pacing down in the low single digits in Q4 and expects to be hit hard again from political comps.
The Thursday Cumulus earnings call was short and sweet and CEO Mary Berner and CFO John Abbot took no questions.