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Jun 30, 2020
Urban One Q2 2020 Earnings Report
Revenue and profitability decreased due to the impact of the COVID-19 pandemic on radio advertising and events.
Key Takeaways
Urban One, Inc. reported a decrease in net revenue by 37.5% compared to the same period in 2019, primarily due to the impact of the COVID-19 pandemic. Net income decreased to $1.4 million, or $0.03 per share. The company's TV and digital businesses performed better than radio and events.
Net revenue decreased by 37.5% year-over-year to $76.0 million.
Radio advertising revenue declined by 51% year-over-year.
Event revenues plummeted by 96% year-over-year.
Net income was $1.4 million, or $0.03 per share, compared to $6.6 million, or $0.15 per share, in the same period last year.
Urban One
Urban One
Forward Guidance
The outlook for the rest of 2020 remains uncertain, but the company anticipates a similar pattern of strong performance from its TV business offsetting some of the weakness in radio advertising and events. Q3 core radio business is currently pacing -41% and the company continue to see sequential improvement.
Positive Outlook
- Strong performance from TV business.
- Sequential improvement in Q3 core radio business.
- Cost saving measures remain in place.
- Liquidity is strong with $70 million of cash on the balance sheet.
- Company will continue to successfully navigate through these unprecedented times.
Challenges Ahead
- Uncertain outlook for the rest of 2020.
- Weakness in radio advertising.
- Weakness in events.
- Economic impact of Covid-19.
- Radio advertising was down 51%, and event revenues were -96% year over year.