Urban One, Inc. Q1 FY2025 earnings call

• Q1 results were largely in-line with guidance, but Q2 radio pacings weakened by ~9%. TV ratings stabilized in Q1 and Q2 as budgeted. - Focus on cost controls, managing leverage, and maintaining liquidity; bought back $88.6 million of debt, reduced gross debt to $495.9 million, cash on hand ~$80 million. - Operating expenses excluding certain items decreased. Radio, Reach, and Cable TV operating expenses down; Digital up due to traffic costs; Corporate down due to lower third-party professional fees. - Recast comparables for 2024 to reflect CTV revenue move and expense reapportionment.

Radio Broadcasting: Net revenue was $32.6 million, a decrease of 10.3% year-over-year. Excluding political, net revenue was down 7.7%. Local ad sales were down 12.8% and national ad sales down 14.6%. Some categories like services were up 11%, travel and transportation up 17%, while others like health care, entertainment were down. Media: Net revenue was $5.9 million, down 30.9% from the prior year, with adjusted EBITDA at a loss of $600,000. Digital: Net revenues were down 16.2% in Q1 at $10.2 million. Audio streaming revenue was impacted by a renegotiation of an exclusive third-party deal, with adjusted EBITDA at $58,000 compared to $2.3 million in the prior year. Cable Television: Recognized approximately $44.2 million of revenue, a decrease of 7.9%. Ad revenue down 6.3%, TV One delivery declined 18% in total day persons 25-54, CLEO TV up 29% in total day persons 25-54 delivery. Affiliate revenue down 10% due to subscriber churn, partially offset by rate increases and NOW TV launch.

• Reaffirmed guidance of $75 million EBITDA. - Q2 radio pacings weakened, digital profit forecasted in the back half of the year, TV One ratings hitting budgeted numbers. Q2 expected to be better than Q1 but still weak, with need to deliver in the back half of the year.

• Ad market uncertainty due to consumer cooling, tariff changes, and economic uncertainty impacting national ad spend. - Digital transition challenges and underpenetration in local digital efforts. - Dependence on national ad spend which is currently weak.

Q: Good morning, guys. So a couple here. First, cost-cutting levers, EBITDA guidance for Q2, and debt repurchases.

A: Reiterated focus on cost-cutting, Q2 expected to be better than Q1 but still weak, and continued opportunistic debt repurchases as they can be beneficial.

Q: Hey, guys. Questions around the ad environment on the radio side, split between national and local SMBs, and podcast growth opportunity.

A: Local SMBs in radio are down low-single digits, not as dramatically as national. Podcast has growth opportunity with more focus on local digital efforts.

Q: If we look at the cable TV revenue, can you break it out between carriage fees and advertising? And renewal schedule, programming spend.

A: Carriage fees and advertising breakout available in press release. Renewal schedule includes Charter up in Q4, Verizon with option, NCTC in September. Programming spend down ~10% for the year, with focus on FAST and AVOD distribution for content investments.