• Adjusted EBITDA: $103.5 million for 2024, with a guidance of $75 million for 2025.
• Consolidated Net Revenues: Down 2.7% year-over-year to approximately $171 million for Q4 2024.
• Radio Broadcast Segment Revenue: $47.7 million, an increase of 14.5% year-over-year.
• Reach Media Segment Revenue: $9.6 million, down 10.7% year-over-year.
• Digital Segment Revenue: $20.5 million, down 3.1% in Q4 2024.
• Cable Television Segment Revenue: $39.8 million, a decrease of 15.9% in Q4 2024.
• Operating Expenses: Decreased to approximately $91.1 million for Q4 2024, a decrease of 13.8% year-over-year.
• Net Loss: Approximately $35.7 million or $0.78 per share for Q4 2024.
• Interest Expense: Decreased to approximately $11.5 million for Q4 2024.
• Net Debt: Approximately $447.5 million as of December 31, 2024.
• Cash on Hand: Approximately $137 million at the end of 2024.
• Capital Expenditures: Approximately $1.3 million for Q4 2024.

• Warning! GuruFocus has detected 4 Warning Signs with UONE.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Urban One Inc (NASDAQ:UONE) achieved adjusted EBITDA of $103.5 million, meeting the middle of their guidance range.
• The company reported strong performance in political advertising, which significantly boosted their Q4 results.
• Urban One Inc (NASDAQ:UONE) is in a strong liquidity position with approximately $137 million in cash on hand.
• The company has been actively reducing debt, repurchasing $15.4 million of its 2028 notes in Q4 and an additional $17 million in January 2025.
• Urban One Inc (NASDAQ:UONE) has implemented cost containment measures, including a 5% workforce reduction, saving approximately $5 million annually.

Negative Points

• The radio business faced challenges with a 13.6% decline in Q1 pacings, although there is some improvement expected in Q2.
• Cable TV segment revenues decreased by 15.9% in Q4, with advertising revenue down 21.4% due to increased subscriber churn.
• The Digital segment saw a 3.1% decline in net revenues in Q4, driven by decreased advertiser demand.
• Urban One Inc (NASDAQ:UONE) recorded a net loss of approximately $35.7 million for Q4, compared to a net loss of $11 million in the same period last year.
• The company is guiding to a lower adjusted EBITDA of $75 million for 2025, down from $103.5 million in 2024, due to weaker radio performance and reduced political advertising.

Q & A Highlights

Q: Can you clarify the radio pacing for Q1 and how it compares to Q4? A: Excluding political, net revenue was down 5.1% in Q4. The weakness in Q1 is due to broad softness across local, national, and network radio, with negative double-digit pacing. However, improvements are expected in Q2, particularly in local markets, which are pacing up.

Q: What are your capital allocation plans for fiscal 2025, particularly regarding stock repurchases and debt reduction? A: We have a small stock repurchase plan but are primarily focused on debt reduction, having repurchased $140 million last year and $17 million this year. We aim to continue this strategy, allocating about 95% of our capital to debt reduction while also considering M&A opportunities that are deleveraging.

Q: How does the current deregulation environment impact potential consolidation in the radio sector? A: We anticipate further consolidation in the radio sector, which is necessary. We have been both buyers and sellers in the past and will continue to look for opportunities. However, the challenge remains due to the negative trend in top-line revenue and the lack of new capital entering the industry.

Q: Can you provide more details on the digital segment's revenue composition and any changes? A: Previously, Connected TV revenue was reported under digital, but it will now be reported under TV to reflect its true association. Other digital revenues include adverts on content verticals, pre-rolls, banners, podcasts, and streaming. We are rebuilding our streaming partnerships after a significant renegotiation.

Q: What is the outlook for free cash flow in 2025, given the EBITDA guidance? A: With an EBITDA guide of $75 million, we expect around $25 million in free cash flow. This considers reduced interest payments due to lower debt and a CapEx projection of $10 million, which includes a significant project in Indianapolis.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.