Urban One Reports $11.7M Q1 Loss Amid Segments Decline
| RADIO ONLINE | Tuesday, May 13, 2025 | 7:55am CT |
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 Urban One |
Urban One posted a net loss of $11.7 million for the first quarter ended March 31, 2025, as total revenue dropped 11.7% year-over-year to $92.2 million. The loss compares to net income of $7.5 million during the same quarter last year. Operating income fell sharply to $2.1 million from $12.9 million in Q1 2024, while Adjusted EBITDA declined to $12.9 million from $22.3 million. Broadcast and digital operating income dropped 28.1% to $23 million.
CEO Alfred C. Liggins III said the results were in line with expectations, citing a 12.4% decline in core radio advertising and a 16.1% drop in digital revenue. "Our cable TV ratings stabilized significantly in the first quarter of 2025 and are performing in line with our 2025 budget," Liggins added. He also noted that second-quarter radio ad pacings have weakened further, now trending at -8.7%.
Adjusted EBITDA guidance for the full year was reaffirmed at $75 million, and Urban One has reduced gross debt to $495.9 million through $88.6 million in repurchases at an average price of 53.9% of par.
Segment performance showed consistent declines as Radio Broadcasting revenue dropped to $32.6 million from $36.4 million, Reach Media fell to $5.9 million from $8.5 million and digital revenue declined to $10.2 million from $12.2 million. Urban One recorded a $6.4 million impairment charge tied to its radio broadcasting licenses, reflecting a continued decline in projected market revenues and margins.
First-quarter operating expenses declined to $90.1 million from $91.5 million, aided by lower third-party fees and office lease costs. Interest expense dropped by $2.1 million to $10.9 million due to repurchases of 2028 Notes. The company also faced a high effective tax rate of 399.5%, driven by a $14.6 million valuation allowance related to net operating losses.
Urban One repurchased over 750,000 shares of its Class A and Class D stock during the quarter for approximately $1 million. As of March 31, 2025, Urban One reported $115.6 million in cash and cash equivalents. Total debt stood at $551.5 million.
