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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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