Urban One, Inc. Q1 FY2025 earnings call

• Q1 results were largely in-line with guidance. - Q2 radio pacings weakened by about 9%. - TV ratings stabilized in Q1 and Q2 and were in line with budget. - Focus on cost controls, managing leverage, and maintaining strong liquidity. - Bought back $88.6 million of debt at an average price of about 53.9%, reducing gross debt to $495.9 million. - Operating expenses, excluding certain items, decreased by 8.6% from prior year, driven by lower third-party professional fees, content expenses, and employee compensation costs. - Radio operating expenses down 2.9%, Reach operating expenses down 1.7%, Cable TV operating expenses down 10.8%, Corporate and Eliminations operating expenses down by approximately $3.8 million.

Consolidated net revenue was approximately $92.2 million, down 11.7% year-over-year. Radio Broadcasting segment: net revenue $32.6 million, a decrease of 10.3% year-over-year. Excluding political, net revenue was down 7.7%. Media segment: net revenue $5.9 million, down 30.9% from prior year. Digital segment: net revenue $10.2 million, down 16.2% in Q1. Audio streaming revenue was down due to renegotiation of a third-party deal. Cable Television segment: recognized approximately $44.2 million of revenue, a decrease of 7.9%. TV One delivery declined 18% in total day persons 25-54, partially offset by CLEO TV's 29% increase in total day persons 25-54 delivery and AVOD/FAST revenue.

• Reaffirmed guidance of $75 million of EBITDA. - Q2 expected to be better than Q1 but still weak, with back half of the year needed for better performance. - Radio pacings weakened, but TV ratings were in line with budget. - Digital profit forecasted to be in the back half of the year.

• Ad environment uncertainty, with national ads being a driver of weakness. - Digital transition challenges, including changes in podcast and streaming deals and underpenetration in local digital efforts. - Potential impact of tariff changes on ad budgets, making it difficult for advertisers to forecast expense profiles.

Q: What other cost-cutting levers do you have?

A: Focused on taking another look at cost-cutting measures, aiming for end of June execution.

Q: Guidance for Q2 EBITDA?

A: Q2 expected to be better than Q1 but still weak, with back half of the year needed for better performance.

Q: Further debt repurchases?

A: Will continue to be opportunistic in debt buybacks, using undrawn revolver as an option.

Q: Ad environment on radio side?

A: National ads are a driver of weakness, local SMBs not doing as dramatically bad.

Q: Programming spend?

A: Programming spend down about 10%, with an annual award show not done contributing to the drop.

Q: Ratings at TV One?

A: TV One ratings stabilized, averaging higher than fourth quarter low budgeted number, with CLEO TV contributing positively.