Urban One Q2 2021 Earnings Report
Key Takeaways
Urban One, Inc. reported a strong second quarter with a 41.6% increase in net revenue and a significant rise in operating income. The company's adjusted EBITDA also surpassed pre-pandemic levels, driven by unprecedented advertiser interest and growth across all platforms.
Net revenue increased by 41.6% compared to the same period in 2020, reaching approximately $107.6 million.
Broadcast and digital operating income increased by 64.3% from the same period in 2020, totaling approximately $49.6 million.
Net income was approximately $17.9 million, or $0.36 per share (basic), compared to $1.4 million, or $0.03 per share (basic) for the same period in 2020.
Adjusted EBITDA increased by 82.4% year-over-year, surpassing Q2 2019 pre-pandemic levels.
Urban One
Urban One
Forward Guidance
The company is pacing up over 40% for Q3 in the core radio business, excluding political revenue. FY21 Adjusted EBITDA guidance is increased to mid-$130 millions, excluding casino chase costs.
Positive Outlook
- Core radio business excluding political is currently pacing up by over 40% for Q3.
- Increased FY21 Adjusted EBITDA guidance to mid-$130 millions, excluding casino chase costs.
- Strong TV scatter markets contributed to a 21.3% increase in TV advertising revenues.
- Registered interest in 2021-22 TV upfront sales presentations has been encouraging, which will help fourth quarter revenue performance.
- Demand for digital products remains high, with digital revenues up by 147.9%.
Challenges Ahead
- COVID-19 pandemic could have an impact on certain revenue and alternative revenue sources.
- Resurgence of the pandemic could impact results of operations, particularly in larger markets.
- New outbreaks or surges in new cases due to variants in the markets could have material impacts on liquidity and operations.
- Income from the investment in MGM National Harbor Casino could be negatively impacted by closures and limitations on occupancy.
- Cost-cutting measures implemented in the prior year have ceased, leading to increased operating expenses.