Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of Urban One's financial performance for Q3 2024? A: Alfred Liggins, CEO, stated that Urban One experienced advertising headwinds in Q3, leading to a decrease in consolidated net revenues by 6.3% year over year, totaling approximately $110.4 million. The company repurchased $14.5 million of outstanding bonds and expects Q4 revenues to be flat due to robust political spending. The year-end EBITDA guidance was adjusted from $110 million to a range of $102 million to $105 million.
Q: How did the radio broadcasting segment perform in Q3 2024? A: Peter Thompson, CFO, reported that net revenue for the radio broadcasting segment was $39.7 million, a decrease of 1.1% year over year. Excluding political revenue, the segment saw a decline of 4.8% year over year. Local advertising sales were down 4.7%, while national advertising sales decreased by 6.2%.
Q: What were the results for the digital segment in Q3 2024? A: The digital segment's net revenues were flat at $20.4 million. While direct national sales were down due to decreased advertiser demand, connected TV and broadcast revenue showed growth. Adjusted EBITDA for the digital segment decreased by 13.5% to $6.4 million.
Q: Can you elaborate on the performance of the cable television segment? A: The cable television segment recognized approximately $40.7 million in revenue, a decrease of 13%. Advertising revenue was down 13.3%, with delivery erosion impacting rates by approximately $4.7 million. Cable TV affiliate revenue decreased by 12.8% due to subscriber churn, which is trending at about 11% per annum.
Q: What were the key factors affecting operating expenses in Q3 2024? A: Operating expenses increased by 3.5% to approximately $87.4 million. This was primarily due to higher expenses in the Houston radio market following an acquisition, increased third-party professional fees, and cloud-based software licenses. The digital segment saw a 2.4% increase in operating expenses due to third-party cost of sales and traffic acquisition costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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