Urban One Reports Almost 9 Percent Revenue Jump

Urban One, Inc. Thursday reported its results for the quarter ended September 30, 2022. 

• Net revenue was approximately $121.4 million, an increase of 8.9% from the same period in 2021. 
• The Company reported operating income of approximately $19.0 million for the three months ended September 30, 2022, compared to approximately $34.5 million for the three months ended September 30, 2021. 
• Broadcast and digital operating income1 was approximately $50.8 million, an increase of 3.5% from the same period in 2021. 
• Net income was approximately $4.2 million or $0.09 per share (basic) compared to $13.9 million or $0.27 per share (basic) for the same period in 2021. 
• Adjusted EBITDA2 was approximately $44.3 million for the three months ended September 30, 2022, compared to approximately $42.7 million for the same period in 2021.

Alfred C. Liggins, III, Urban One's CEO and President stated, "Q3 was another very solid quarter, during which we grew both revenues and Adjusted EBITDA. Following a soft July for radio advertising, August and September rebounded and we finished the quarter +1.4% on a same station basis, and -1.3% excluding political. Same station radio pacings for Q4 excluding digital are currently +16.0% including political and +0.1% excluding political. Layering in the recent Indianapolis acquisition should push radio revenues to a double-digit percentage increase for Q4. 

Alfred Liggins

"Political spending has steadily gathered momentum, and we anticipate net political advertising revenues to be between $12-$13 million, of which radio is $9-$10 million, which is significantly ahead of both our budget and the 2018 cycle. Our Cable TV business had another successful broadcast upfront season, and we were able to increase both our CPM's and total dollars committed. Our Digital segment posted growth of approximately 40% in both revenue and Adjusted EBITDA as demand for our audience and digital products remained strong. Our liquidity and leverage profile remained robust, and we continued to opportunistically repurchase our 7.375% bonds in the open market."

The company’s chances of winning approval to build a casino in Richmond are now at the mercy of which way the political winds blow. “It will be a battle in the upcoming General Assembly session, starting in January,” Liggins said. The session will determine whether the casino opportunity stays in Richmond, where Urban One was earlier chosen as the developer. Or if it moves to Petersburg, VA which has been working with the Cordish Companies, which already operates casinos under the Live! brand and was the runner-up to Urban One for the Richmond casino. “The legislature is tricky, and it will be highly political,” Liggins predicted. “I don't really have a good answer as to ultimately what happens.”