#United States #Inc. #Silver Spring #Urban One #TV One #Reach Media

Urban One, Inc. Reports Fourth Quarter 2024 Results

Urban One, Inc., a key player in the media landscape, recently disclosed its financial results for the quarter ending December 31, 2024. This update is critical for investors and analysts following the company closely.

Revenue and Performance Overview

In the reported quarter, the company achieved net revenues of approximately $117.1 million, which marks a 2.7% decrease compared to $120.3 million in the same period from the previous year. This decline has raised concerns, particularly as the company also faced an operating loss of nearly $1.9 million juxtaposed with an operating income of about $6.8 million for the same prior-year quarter.

Interestingly, the broadcast and digital operating income for Urban One saw a slight increase, registering about $38.6 million which is 1.7% above the previous year. Despite this, the net loss ballooned to $35.7 million or ($0.78) per share, a significant leap from the net loss of $11 million or ($0.23) per share a year earlier.

The Adjusted EBITDA for this quarter was noted at around $26.9 million, fairly stable compared to the $27.1 million from the same quarter last year, hinting that while the revenue dipped, the company managed to maintain operational efficiency.

Management Insights

Alfred C. Liggins, III, the CEO and President of Urban One, articulated that the Adjusted EBITDA of $103.5 million aligns with their mid-point guidance and credited strong political advertising revenues in the radio division as a contributing factor. However, he also acknowledged the challenges faced by the cable TV segment, which continued to see declines in both advertising and affiliate revenues, affected by underperformance in audience delivery.

Encouragingly, there are signs of stability in the cable TV delivery for the first quarter of 2025, which might alleviate some of the persistent declines in linear TV subscribers. Furthermore, demand for core radio revenue has shown weakness with a recorded decrease of 13.6% in pacings, although a recovery is anticipated with current second-quarter pacings reflecting a mere 1.7% downtrend.

Segment Performance

Looking deeper into segment performances, the Radio Broadcasting division generated about $47.7 million, up from $41.7 million in Q4 2023, largely due to increased political revenue, despite an overall drop in local and national sales due to reduced demand. Conversely, the Reach Media segment experienced a revenue decrease from $10.8 million to $9.6 million, primarily attributed to diminishing advertiser demand.

The Digital segment contributed $20.5 million, compared to $21.2 million in the previous year, exhibiting a decline primarily due to lower national direct sales. Notably, the Cable Television division saw a revenue drop to $39.8 million from approximately $47.3 million, a reflection of reduced audience viewership impacting advertising revenues significantly.

Financial Footing and Future Plans

Despite facing these financial hurdles, Urban One maintains a robust position in terms of liquidity with $137.1 million in cash and cash equivalents by the year-end. This strong cash position will enable the company to continue focusing on cost containment and de-leveraging strategies going forward.

For the upcoming quarter, Urban One's management is optimistic yet cautious, aiming for stabilization in key performance metrics and seeking opportunities to enhance revenue streams across all operating segments.

In conclusion, while Urban One, Inc. grapples with significant challenges reflected in its latest quarterly results, the company's leadership remains committed to navigating these adverse conditions with a focus on strategic growth and stabilization for the future. Stakeholders will be keen to observe how these efforts unfold in the coming quarters.