Urban One Inc (UONE) Q1 2025 Earnings Call Highlights: Navigating Revenue Challenges and ...

In This Article:

  • Consolidated Net Revenue: $92.2 million, down 11.7% year-over-year.

  • Radio Broadcasting Net Revenue: $32.6 million, a decrease of 10.3% year-over-year.

  • Digital Segment Net Revenue: $10.2 million, down 16.2% in Q1.

  • Cable Television Revenue: $44.2 million, a decrease of 7.9%.

  • Consolidated Adjusted EBITDA: $12.9 million, down 42.2%.

  • Net Loss: $11.7 million or $0.26 per share, compared to net income of $7.5 million or $0.15 per share in Q1 2024.

  • Operating Expenses: $80.7 million, a decrease of 8.6% from the prior year.

  • Interest Expense: $10.9 million, down from $13 million last year.

  • Capital Expenditures: Approximately $2.5 million.

  • Gross Debt: Approximately $556.3 million.

  • Ending Unrestricted Cash: $115.1 million.

  • Net Debt: Approximately $441.3 million.

Release Date: May 13, 2025

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

Positive Points

  • Urban One Inc (NASDAQ:UONE) reaffirmed its guidance of $75 million EBITDA for 2025, indicating confidence in its financial outlook.

  • The company successfully reduced its gross debt to $495.9 million by repurchasing $88.6 million of debt at a discount, demonstrating effective debt management.

  • Operating expenses decreased by 8.6% year-over-year, primarily due to lower third-party professional fees and employee compensation costs.

  • Local radio advertising revenue showed resilience, with a decline of less than 2%, indicating stability in this segment.

  • Urban One Inc (NASDAQ:UONE) maintains a strong liquidity position with $80 million in cash and an undrawn revolver, providing financial flexibility.

Negative Points

  • Consolidated net revenue decreased by 11.7% year-over-year, reflecting challenges in revenue generation.

  • Radio Broadcasting segment revenue declined by 10.3% year-over-year, with national ad sales down 14.6%.

  • Digital segment revenue fell by 16.2% in Q1, impacted by renegotiation of an exclusive third-party deal.

  • Cable television segment revenue decreased by 7.9%, with a notable decline in TV One delivery by 18%.

  • The company recorded a net loss of $11.7 million for the quarter, compared to a net income of $7.5 million in the prior year.

Q & A Highlights

Q: What cost-cutting measures has Urban One implemented, and are there more planned for the future? A: Alfred Liggins, CEO, mentioned that Urban One implemented cost-cutting measures at the end of last year, saving about $5 million. They are reviewing further opportunities for cost reduction, aiming to execute additional measures by mid-year. However, specific details were not disclosed.