Urban One (UONE) Q4 2024 earnings summary

Executive summary

• Adjusted EBITDA for 2024 was $103.5 million, in the middle of guidance, driven by strong political advertising in Q4, but full-year Adjusted EBITDA declined from $131.0 million in 2023.

• Cost containment and debt reduction are key focuses for 2025, with a staff reduction of 5% saving $5 million annually and deleveraging as a priority.

• 2025 adjusted EBITDA is guided to $75 million, reflecting weaker radio and lower political advertising.

• Liquidity remains strong with $137 million cash at year-end.

• Political advertising in radio surged, offsetting declines in cable TV and digital segments.

Financial highlights

• Consolidated net revenues for Q4 2024 were $171 million, down 2.7% year-over-year; full-year revenue fell 5.9% to $449.7 million.

• Net loss for Q4 was $35.7 million ($0.78/share), compared to a net loss of $11 million ($0.23/share) in Q4 2023; full-year net loss was $105.4 million versus net income of $2.1 million in 2023.

• Consolidated adjusted EBITDA for Q4 was $26.9 million, nearly flat year-over-year.

• Operating expenses (excluding certain items) decreased 13.8% year-over-year to $91.1 million.

• Interest expense decreased to $11.5 million in Q4, down from $14.2 million last year.

Outlook and guidance

• 2025 adjusted EBITDA guidance is $75 million, down from $103.5 million in 2024, mainly due to lower political advertising and weaker radio.

• Free cash flow for 2025 is projected at around $25 million, with $10 million in CapEx, including a $5 million Indianapolis office consolidation.

• No new cost savings are included in the $75 million EBITDA guide; further reductions could improve results.

• Management expects cable TV delivery to stabilize in Q1 2025, mitigating linear TV subscriber declines.

• Q1 2025 radio revenue pacing down 13.6%, but Q2 pacing shows improvement at down 1.7%.