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Mar 31, 2020
Urban One Q1 2020 Earnings Report
Reported a decrease in revenue and an operating loss due to the impact of COVID-19.
Key Takeaways
Urban One reported a decrease in net revenue by 3.6% to $94.9 million compared to the same period in 2019. The company experienced an operating loss of $27.3 million, and a net loss of $23.2 million or $0.51 per share. Despite these losses, adjusted EBITDA increased to $32.3 million.
Net revenue decreased by 3.6% year-over-year to $94.9 million.
The company reported an operating loss of $27.3 million compared to an operating income of $14.8 million in the same period last year.
Net loss was $23.2 million, or $0.51 per share, compared to a net loss of $3.1 million, or $0.07 per share in the prior year.
Adjusted EBITDA increased to $32.3 million from $27.7 million in the same period last year.
Urban One
Urban One
Forward Guidance
The company expects TV segment to deliver incremental EBITDA to help offset some of the declines in radio. Liquidity remains strong, and company believes they have seen a floor in the revenue declines.
Positive Outlook
- Strong ratings in TV segment.
- Deferred programming and marketing expenses.
- Other cost cuts.
- Diverse mix of assets will help through this crisis.
- Expect the TV segment to deliver incremental EBITDA to help offset some of the declines in radio.
Challenges Ahead
- Radio advertising for April was down 58.3%
- Q2 is pacing -57.3%
- Both local and national advertising is impacted by broadly similar percentages.
- Forced to reduce fixed costs by means of furloughs, layoffs, significant salary cuts, and reduction of all discretionary expenditure.
- COVID-19 outbreak has caused the postponement of our 2020 Tom Joyner Foundation Fantastic Voyage cruise and impaired ticket sales and/or caused the postponement of other tent pole special events.