Urban One Reports 6.3% Decline in Q3 2024 Revenues

RADIO ONLINE | Tuesday, November 12, 2024

Urban One

Urban One reported a decrease in net revenues and a significant operational loss for the third quarter of 2024. The company's net revenue fell by 6.3% to $110.4 million, down from $117.8 million in the same quarter last year. This decline reflects a broader contraction across several key segments, including radio, digital and cable television advertising.

The company faced a challenging quarter marked by a 13.3% drop in cable television advertising revenues and a 4.1% decrease in digital advertising. Radio advertising revenue also decreased by 3.6%. Despite these declines, political advertising saw a significant increase, surging 222.2% to $3.5 million, buoyed by the election cycle.

Operating expenses for Q3 2024 totaled $136.6 million, compared to $173.9 million in the previous year, showing some cost containment even as the company recorded a substantial $46.8 million impairment of goodwill, intangible assets, and long-lived assets. This led to an operating loss of $26.2 million, a stark improvement, however, from the $56.1 million loss recorded in Q3 2023.

Interest expenses also decreased slightly from $14.0 million in Q3 2023 to $11.6 million in Q3 2024, and the company gained $3.5 million on the retirement of debt, helping to mitigate some financial pressures. Nevertheless, net loss attributable to common stockholders deepened to $31.8 million from $54.4 million a year earlier, illustrating ongoing profitability challenges.

Urban One's adjusted EBITDA for the quarter was $25.4 million, down from $34.6 million in the prior year's quarter, reflecting tighter operating margins and the ongoing impacts of a challenging economic environment on the media sector.

The company's balance sheet showed $115.5 million in cash and cash equivalents, down significantly from $233.6 million at the end of 2023, underlining a decrease in liquidity. Total debt stood at approximately $593.9 million, with an interest rate of 7.375% on its senior secured notes due in February, 2028.