Urban One Reports 21.3% Revenue Growth and Net Income Turnaround in Q3 2021

Urban One, Inc. reported significant financial improvements in its latest 10-Q filing for the third quarter of 2021, showcasing a net revenue of $111.5 million, a 21.3% increase from $91.9 million in the same period of 2020. For the nine months ending September 30, 2021, the company achieved net revenue of $310.5 million, up 18.2% from $262.8 million year-over-year. The increase in revenue was primarily driven by a recovery in advertising demand as the economic impacts of the COVID-19 pandemic began to subside, particularly in the radio broadcasting segment, which saw a 21.8% rise in revenue.

The company also reported a consolidated net income of $14.5 million for the third quarter, a substantial turnaround from a net loss of $12.3 million in the same quarter of the previous year. For the nine-month period, Urban One recorded a net income of $33.4 million, compared to a loss of $33.7 million in 2020. This improvement in profitability was attributed to a reduction in operating expenses, which fell by 12.5% to $77.0 million in the third quarter, largely due to the absence of impairment charges that had significantly impacted the previous year's results.

Strategically, Urban One has been active in refining its operations and expanding its market presence. The company completed a significant refinancing in January 2021, issuing $825 million in senior secured notes due in 2028, which allowed it to pay off several existing debts, including the 2017 and 2018 credit facilities. This restructuring is expected to enhance the company's financial flexibility moving forward. Additionally, Urban One has continued to invest in its digital and cable television segments, with digital advertising revenue increasing by 84.5% year-over-year.

Operationally, Urban One has maintained a strong presence in its core markets, operating 63 radio stations across 13 major urban areas. The company reported improvements in customer engagement metrics, with notable increases in digital advertising and cable television revenues. The digital segment, which includes Interactive One, saw a revenue increase of nearly 97% compared to the previous year, reflecting a growing audience and enhanced product offerings. The company’s total assets as of September 30, 2021, stood at approximately $1.24 billion, up from $1.20 billion at the end of 2020.

Looking ahead, Urban One remains cautiously optimistic about its growth trajectory, although it acknowledges potential risks associated with ongoing market volatility and the lingering effects of the pandemic. The company is focused on leveraging its diversified media portfolio to capture advertising revenue and expand its audience reach, particularly in the digital space. Urban One's management continues to evaluate opportunities for strategic acquisitions and partnerships that align with its mission to serve the African-American community through targeted media and entertainment offerings.