Urban One reported lower second quarter revenue. However, the company also sharply reduced its net loss.
What We Know: Urban One generated $85.8 million in second quarter net revenue, reflecting a 6.4% decline from the same period last year. Meanwhile, the company posted an operating loss of $11.2 million. Broadcast and Digital Operating Income totaled $22.2 million, while Adjusted EBITDA fell to $11.7 million. Despite softer revenue, Urban One significantly improved its bottom line, reporting a net loss of $7.1 million compared to a $77.9 million loss a year earlier.
What the Numbers Show:
| Metric | Result | Year-Over-Year Change |
|---|---|---|
| Net Revenue | $85.8 million | 🔻 Down 6.4% |
| Operating Income | -$11.2 million | — |
| Broadcast/Digital Operating Income | $22.2 million | 🔻 Down $3.5 million |
| Net Loss | $7.1 million | 🟢 Improved from $77.9 million loss |
| Adjusted EBITDA | $11.7 million | 🔻 Down from $14.0 million |
What They Said: “We saw some sequential improvement in the second quarter compared to the first quarter, with lower rates of revenue decline. Cable Television was down 7.4%, Digital was down 8.4%, Radio was down 3.9%, and Reach Media dropped by 10.6%. In Radio, our Miller Kaplan local Radio revenues were down 10.1% year-over-year vs. the market down 7.8%; and national was down 1.5% vs. the market down 4.6%. Including local digital, second quarter Radio revenue was down 4.9%. We did approximately $1.4 million in gross political advertising in the second quarter. Radio third quarter is pacing down 2.8%.” – Urban One President/CEO Alfred Liggins III
What It Means: Urban One continues to navigate a difficult advertising environment, although quarterly trends showed improvement from the first quarter. While revenue and EBITDA remained under pressure, the dramatic reduction in net loss suggests the company’s cost management efforts are gaining traction. Additionally, Liggins’ comments indicate radio advertising trends have stabilized somewhat, with third-quarter pacing showing a smaller decline than the second quarter.
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Garrett Searight is Barrett Media’s News Editor, which includes writing daily news stories, features, and opinion columns. He joined Barrett Media in 2022 after a decade leading several radio brands in several formats, as well as a 5-year stint working in local television. In addition to his work with Barrett Media, he is a radio and TV play-by-play broadcaster. Reach out to him at Garrett@BarrettMedia.com.