What does this mean??
From All Access: “CUMULUS MEDIA INC. second quarter 2019 net revenue fell 2% year-to-year (but up 1.8% on a same station basis excluding political) to $279.7 million, with net income down from $706.1 million to $42.9 million, mostly due to a net loss on the corporate side offsetting gains on the radio group side...”
What does “…net income down…mostly due to a net loss on the corporate side offsetting gains on the radio group side…” mean?
Digging a bit, I found this on GlobalNewsWite.com:
“Corporate and Other includes overall executive, administrative, and support functions for all of the Company’s operations, including accounting, finance, legal, human resources, information technology, and programming functions.“
I am not a finance guy. I’m not a CPA. I pay one to do my taxes every year, but can this really mean that Corporate expenses, defined above, cost over $650 million?
How is that possible? I must be wrong; I just don’t know why.
If you are a finance guy, especially if you work in finance for Cumulus, can you explain this to me?