Urban One Reports $104.4 Million Revenue, Net Income Turnaround in Q1 2024

Urban One, Inc. reported a net revenue of $104.4 million for the three months ended March 31, 2024, a decrease of 5% from $109.9 million in the same period last year. The decline in revenue was attributed to lower advertising sales across its segments, particularly in digital and cable television. The radio broadcasting segment, however, saw a slight increase in revenue to $36.4 million, up from $35.2 million, primarily due to the acquisition of a Houston radio cluster completed in August 2023. The company also reported a net income of $7.5 million, a significant turnaround from a net loss of $2.9 million in the prior year, driven by improved operating income and a gain on the retirement of debt.

Operating expenses for Urban One decreased by 10.1% to $91.5 million, down from $101.7 million in the previous year. This reduction was largely due to the absence of impairment charges, which totaled $16.8 million in the prior year. The company reported an operating income of $12.9 million, a 58.7% increase from $8.1 million in the same quarter of 2023. Interest income rose significantly to $2.0 million, compared to $0.3 million in the previous year, while interest expenses decreased to $13.0 million from $14.1 million, reflecting lower overall debt levels.

In terms of strategic developments, Urban One completed the acquisition of Cox Media Group's Houston radio cluster for $27.5 million, which was finalized on August 1, 2023. This acquisition is expected to enhance the company's market presence and advertising revenue potential. Additionally, Urban One increased its ownership in Reach Media to 90% after noncontrolling interest shareholders exercised their Put Right, resulting in a cash outflow of approximately $7.6 million.

Operationally, Urban One continues to focus on its core segments, which include radio broadcasting, Reach Media, digital, and cable television. The company operates 72 broadcast stations across 13 major markets, targeting African-American and urban consumers. As of March 31, 2024, Urban One reported total assets of $1.1 billion, down from $1.2 billion at the end of 2023, primarily due to a decrease in cash and cash equivalents. The company’s cash and cash equivalents stood at $155.3 million, down from $233.1 million at the end of the previous fiscal year.

Looking ahead, Urban One anticipates challenges due to macroeconomic conditions, including inflation and interest rate fluctuations, which may impact advertising revenues. The company is committed to enhancing its operational efficiency and exploring new revenue streams, particularly in digital and cable television, to mitigate these risks. Urban One's management remains optimistic about the potential for growth through strategic acquisitions and investments in its core business segments.