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Sep 30, 2020
Urban One Q3 2020 Earnings Report
Net revenue decreased, but adjusted EBITDA increased year-over-year.
Key Takeaways
Urban One reported a decrease in net revenue for Q3 2020, primarily due to the COVID-19 pandemic's impact on advertising and event revenues. However, the company's adjusted EBITDA increased due to strong performances in the TV, Digital, and Reach Media divisions.
Net revenue decreased by 17.2% compared to the same period in 2019.
Broadcast and digital operating income increased by 1.3% year-over-year.
Net loss was $12.8 million, compared to net income of $5.4 million in Q3 2019.
Adjusted EBITDA increased by 2.3% compared to Q3 2019.
Urban One
Urban One
Urban One Revenue by Segment
Revenue by Segment
Radio Broadcasting Revenue
CapyFin.comReach Media Revenue
CapyFin.comDigital Revenue
CapyFin.comCable Television Revenue
CapyFin.com Forward Guidance
Urban One expects full year 2020 Adjusted EBITDA to be in the $125-$130 million range.
Positive Outlook
- Radio segment revenues showed continued sequential improvements compared to Q2 2020.
- Same station radio division revenues are currently pacing down only mid-single digits compared to Q4 2019 including political advertising.
- Impressive performance in TV, Digital and Reach Media divisions.
- Record-breaking political advertising revenues in excess of $20 million across the entire platform.
- Strong support from lenders for bond exchange offer, extending maturity of secured notes and unsecured term loan.
Challenges Ahead
- COVID-19 pandemic continues to impact the Company's revenues.
- Radio segment derives substantial revenue from local advertisers who have been particularly hard hit due to social distancing and government interventions.
- Postponement of the 2020 Tom Joyner Foundation Fantastic Voyage cruise and impaired ticket sales of other tent pole special events.
- Company does not carry business interruption insurance to compensate for losses from COVID-19.
- Continued or future outbreaks and/or the speed at which businesses reopen (or reclose) in the markets could have material impacts on liquidity and/or operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income