Urban One Reports 9.2% Revenue Decline and $45.4 Million Net Loss in Q2 2024

Urban One, Inc. reported a significant decline in financial performance for the second quarter of 2024, with net revenues of $117.7 million, down 9.2% from $129.7 million in the same period last year. The company experienced a net loss attributable to common stockholders of $45.4 million, compared to a profit of $70.4 million in the prior year. This resulted in a basic loss per share of $0.94, a stark contrast to earnings of $1.48 per share in the previous year. For the first half of 2024, Urban One's revenues totaled $222.2 million, down 7.3% from $239.5 million in the first half of 2023, with a net loss of $37.9 million compared to a profit of $67.4 million.

The decline in revenue was attributed to several factors, including decreased advertising demand across various segments. The radio broadcasting segment saw a slight increase in revenue to $42.0 million, primarily due to the acquisition of a Houston station, but this was offset by declines in the Reach Media and digital segments, which reported revenues of $18.9 million and $15.9 million, respectively. The cable television segment also faced challenges, with revenues dropping to $41.5 million from $52.4 million, largely due to reduced audience viewership and subscriber churn.

Operationally, Urban One has made strategic moves, including the acquisition of Cox Media Group's Houston radio cluster for $27.5 million, completed in August 2023. However, the company also recognized an impairment charge of approximately $80.8 million related to its radio broadcasting licenses, reflecting a decline in projected revenues and increased discount rates. This impairment significantly impacted the company's operating income, which resulted in an operating loss of $60.4 million for the quarter, compared to an operating income of $9.7 million in the same quarter last year.

Looking ahead, Urban One's management has expressed caution regarding the macroeconomic environment, including inflation and interest rate fluctuations, which could further impact advertising revenues. The company has also initiated a stock repurchase program, authorizing up to $20 million for the repurchase of its Class A and Class D common stock over the next 24 months. Despite the current challenges, Urban One remains focused on its core business and strategic initiatives to enhance its market position and operational efficiency.