Urban One (UONE) Q2 2024 earnings summary

Executive summary

• Net revenues for Q2 2024 were $117.7 million, down 9.2% year-over-year, with a net loss of $45.4 million or $0.94 per share, compared to net income of $70.4 million last year.

• The quarter included an $80.8 million non-cash impairment charge on radio broadcasting licenses in 9 markets.

• Adjusted EBITDA was $28.4 million, down 24.2% year-over-year.

• Broadcast and digital operating income fell 27.7% to $34.2 million.

• Challenging environment in cable TV and digital due to churn and lower advertiser demand, while radio showed some growth.

Financial highlights

• Q2 2024 net revenues declined 9.2% year-over-year to $117.7 million; six-month revenues fell 7.3% to $222.2 million.

• Radio broadcasting net revenue was $42 million, up 7.2% year-over-year, aided by the Houston station acquisition.

• Digital segment revenue fell 16% to $15.9 million; cable TV segment revenue dropped 20.9% to $41.5 million.

• Q2 net loss per share was $(0.94) compared to $1.48 EPS in Q2 2023.

• Interest expense decreased to $12.4 million due to debt reduction.

Outlook and guidance

• Q3 radio pacing down 6.9% on a same-station basis, but up 7% as reported due to acquisitions and political advertising.

• Full-year EBITDA guidance maintained at $110–$120 million, expected at the lower end.

• Management expects political advertising to benefit radio and digital in H2 2024.

• New CTV ad server launching, expected to improve monetization in the second half.

• Management expects cash flows, cash on hand, and available credit to be sufficient for foreseeable requirements.