Urban One(UONE) - 2024 Q4 - Annual Results

Financial Performance - For Q4 2024, Urban One, Inc. reported net revenue of approximately $117.1 million, a decrease of 2.7$120.3 million[1]. - The company experienced an operating loss of approximately $1.9 million in Q4 2024, compared to an operating income of approximately$6.8 million in Q4 2023[1]. - Net loss for Q4 2024 was approximately $35.7 million, or$(0.78) per share, compared to a net loss of $11.0 million, or$(0.23) per share, in the same period last year[1]. - Adjusted EBITDA for Q4 2024 was approximately $26.9 million, slightly down from$27.1 million in Q4 2023[1]. - The company reported a net loss attributable to common stockholders of $35,658,000 for the three months ended December 31, 2024, compared to a net loss of$10,985,000 for the same period in 2023[21][23]. - The company reported a total net loss of $104,179,000 for the year ended December 31, 2024, compared to a net loss of$10,470,000 in 2023, highlighting a worsening financial position[24]. Revenue Breakdown - Radio Broadcasting segment revenue increased to approximately $47.7 million, up 14.4$41.7 million in Q4 2023, primarily due to increased political revenue[10]. - Political advertising revenue surged to $13.5 million, a 591.9$1.9 million in Q4 2023[11]. - Digital advertising revenue decreased by 13.2% to approximately $18.1 million from$20.8 million in Q4 2023[11]. - Cable television advertising revenue fell by 21.4% to approximately $21.2 million from$27.0 million in Q4 2023[11]. - Total net revenue for the year ended December 31, 2023, was $477,690,000, with significant contributions from Radio Broadcasting ($156,214,000) and Cable Television ($196,207,000) segments[26]. Operating Expenses - Operating expenses, excluding certain items, were approximately$91.1 million, down from $105.6 million in Q4 2023[12]. - Total operating expenses for the three months ended December 31, 2024, were$118,982,000, compared to $113,580,000 in the same period of 2023, reflecting an increase of 4$509,261,000, with the largest components being Selling, General and Administrative expenses ($172,440,000) and Programming and Technical expenses ($136,884,000)[26]. Impairment and Interest Expenses - Impairment of goodwill and intangible assets was approximately $24.2 million in Q4 2024, compared to$5.0 million in Q4 2023[3]. - The impairment of goodwill and intangible assets for the year ended December 31, 2024, was $151,755,000, compared to$4,972,000 in 2023, showing a substantial increase[24]. - Interest expense decreased to approximately $11.5 million from$14.2 million in Q4 2023, following a repurchase of $15.4 million of 2028 Notes[16]. - Interest expense for the year ended December 31, 2024, was$48,571,000, compared to $14,173,000 in 2023, reflecting a significant rise in borrowing costs[24]. - Interest expense for the year was$56,196,000, highlighting the cost of debt management[26]. Strategic Focus and Future Plans - The company is focusing on cost containment and continued de-levering strategies for 2025[1]. - The company plans to focus on market expansion and new product development as part of its future strategy[25]. - Future growth strategies include expanding digital content offerings and enhancing radio programming to better serve the target audience[30]. Market Position - Urban One operates 72 broadcast stations, including 57 FM or AM stations, across 13 urban markets in the U.S.[30]. - The company targets Black Americans and urban consumers, providing a unique advertising platform through its diversified media operations[30].