Urban One Reports 11.7% Revenue Decline and $11.7 Million Net Loss in Q1 2025

Urban One, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net revenue falling to $92.2 million, down 11.7% from $104.4 million in the same period last year. The decrease was attributed to lower advertising revenues across its segments, particularly in radio and cable television, where revenues dropped by 12.4% and 6.3%, respectively. The company also recorded a net loss of $11.7 million, compared to a net income of $7.7 million in the prior year, resulting in a loss per share of $0.26.

Operating expenses for Urban One decreased slightly to $90.1 million from $91.5 million, primarily due to reductions in selling, general, and administrative costs. However, the company incurred a $6.4 million impairment charge related to its radio broadcasting licenses, which contributed to the overall net loss. Interest expenses also decreased to $10.9 million from $13.0 million, reflecting lower debt levels. The company reported a gain of $11.6 million on the retirement of debt, which helped offset some losses.

In terms of strategic developments, Urban One continued to focus on its core business segments, which include radio broadcasting, Reach Media, digital platforms, and cable television. The company has been actively repurchasing its debt, having bought back approximately $28.2 million of its 2028 Notes during the quarter. Additionally, Urban One increased its ownership stake in Reach Media to approximately 94.6% after exercising a put right for $3.2 million, reducing the non-controlling interest from 10% to 5.4%.

Operationally, Urban One operates 72 broadcast stations across 13 major markets, primarily targeting African-American audiences. The company has diversified its revenue streams through acquisitions and investments in complementary media properties. However, the overall advertising market remains challenging, with competition for advertising revenues intensifying. The company noted that macroeconomic factors, including inflation and market volatility, could further impact its financial performance.

Looking ahead, Urban One anticipates continued challenges in the advertising market, particularly in the radio and cable television segments. The company is focused on improving operational efficiencies and exploring new revenue opportunities to mitigate these challenges. Management remains cautious about the economic environment and its potential effects on future performance, emphasizing the need for strategic adjustments to navigate the evolving media landscape.