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Urban One Inc (UONE) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Adjusted EBITDA: $103.5 million for 2024, with a guidance of $75 million for 2025.

  • Consolidated Net Revenues: Down 2.7% year-over-year to approximately $171 million for Q4 2024.

  • Radio Broadcast Segment Revenue: $47.7 million, an increase of 14.5% year-over-year.

  • Reach Media Segment Revenue: $9.6 million, down 10.7% year-over-year.

  • Digital Segment Revenue: $20.5 million, down 3.1% in Q4 2024.

  • Cable Television Segment Revenue: $39.8 million, a decrease of 15.9% in Q4 2024.

  • Operating Expenses: Decreased to approximately $91.1 million for Q4 2024, a decrease of 13.8% year-over-year.

  • Net Loss: Approximately $35.7 million or $0.78 per share for Q4 2024.

  • Interest Expense: Decreased to approximately $11.5 million for Q4 2024.

  • Net Debt: Approximately $447.5 million as of December 31, 2024.

  • Cash on Hand: Approximately $137 million at the end of 2024.

  • Capital Expenditures: Approximately $1.3 million for Q4 2024.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Urban One Inc (NASDAQ:UONE) achieved adjusted EBITDA of $103.5 million, meeting the middle of their guidance range.

  • The company reported strong performance in political advertising, which significantly boosted their Q4 results.

  • Urban One Inc (NASDAQ:UONE) is in a strong liquidity position with approximately $137 million in cash on hand.

  • The company has been actively reducing debt, repurchasing $15.4 million of its 2028 notes in Q4 and an additional $17 million in January 2025.

  • Urban One Inc (NASDAQ:UONE) has implemented cost containment measures, including a 5% workforce reduction, saving approximately $5 million annually.

Negative Points

  • The radio business faced challenges with a 13.6% decline in Q1 pacings, although there is some improvement expected in Q2.

  • Cable TV segment revenues decreased by 15.9% in Q4, with advertising revenue down 21.4% due to increased subscriber churn.

  • The Digital segment saw a 3.1% decline in net revenues in Q4, driven by decreased advertiser demand.

  • Urban One Inc (NASDAQ:UONE) recorded a net loss of approximately $35.7 million for Q4, compared to a net loss of $11 million in the same period last year.

  • The company is guiding to a lower adjusted EBITDA of $75 million for 2025, down from $103.5 million in 2024, due to weaker radio performance and reduced political advertising.

Q & A Highlights

Q: Can you clarify the radio pacing for Q1 and how it compares to Q4? A: Excluding political, net revenue was down 5.1% in Q4. The weakness in Q1 is due to broad softness across local, national, and network radio, with negative double-digit pacing. However, improvements are expected in Q2, particularly in local markets, which are pacing up.