After shutting down some 20 non-essential Cumulus Media stations in February and March and a sobering first quarter earnings decline, management appears ready to abandon even more of their stations.
- Cumulus has not explicitly indicated plans to shut down additional stations beyond the over 20 closures that occurred early this year but by emphasizing a strategic focus on optimizing its portfolio they are suggesting that further evaluations and potential actions may be forthcoming.
- Here’s CEO Mary Berner’s set up: “The imposition of sweeping tariffs in conjunction with ongoing government spending cuts has resulted in supply chain concerns, inflation pressures, and worsening consumer sentiment, all of which have further clouded the outlook for consumer demand and contributed to pullbacks in advertising spending.”
- BUT, that appears to be a stretch even for radio groups that have wild imaginations when it comes to explaining revenue shortfalls – tariffs?
- They’ve gone further in fine print outlining which stations might be in harm’s way next.
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