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.

• Cost containment and debt reduction are top priorities for 2025, with a staff reduction of 5% saving $5 million annually.

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

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

• Q4 2024 net loss widened to $35.7 million from $11 million a year ago; full-year net loss was $105.4 million.

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.

• Radio broadcast segment net revenue was $47.7 million, up 14.5% year-over-year; excluding political, down 5.1%.

• Digital segment Q4 net revenue was $20.5 million, down 3.1%; adjusted EBITDA $5.3 million, up 50.7%.

• Cable TV segment Q4 revenue was $39.8 million, down 15.9%; ad revenue down 21.4%.

• Q4 impairment charges on goodwill and intangibles were $24.2 million, up from $5 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 $25 million, with $10 million in CapEx, including a $5 million Indianapolis office project.

• Q1 2025 radio revenue pacing down 13.6%, improving to down 1.7% in Q2.

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

• Further cost reductions are expected in 2025, but not yet quantified.