Urban One Inc (UONE) Reports Mixed Results for First and Second Quarters of 2023
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Urban One Inc (NASDAQ:UONE) sees a 3.8% increase in net revenue for the first half of 2023 compared to the same period in 2022.
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Operating income for the six months ended June 30, 2023, falls to $17.8 million from $61.8 million in the prior year.
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Net income attributable to common stockholders jumps to $67.4 million, or $1.42 per share (basic), up from $32.8 million, or $0.64 per share (basic).
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Adjusted EBITDA for the six-month period decreases to approximately $67.8 million from $89.5 million year-over-year.
On December 12, 2023, Urban One Inc (NASDAQ:UONE) released its 8-K filing, detailing the financial results for the first and second quarters of 2023, as well as the cumulative six-month period ending June 30, 2023. The company experienced a modest rise in net revenue, reporting approximately $239.5 million, a 3.8% increase from the same period in the previous year. However, operating income saw a significant decline, dropping to approximately $17.8 million from $61.8 million in the first half of 2022.
Despite the decrease in operating income, net income attributable to common stockholders showed a remarkable increase, doubling from $32.8 million, or $0.64 per share (basic), in the first half of 2022, to $67.4 million, or $1.42 per share (basic), in the same period of 2023. This improvement was largely due to the sale of UONE's MGM National Harbor investment, which significantly bolstered the company's cash balance. Adjusted EBITDA, however, decreased to approximately $67.8 million for the six months ended June 30, 2023, compared to approximately $89.5 million for the same period in 2022.
Financial Performance Highlights
Urban One's CEO and President, Alfred C. Liggins, III, commented on the results, stating,
this is our first earnings release since the sale of our MGM National Harbor investment for $136.8 million, and the impact can be seen in both our improved cash balance and the reduction of Adjusted EBITDA."
He also noted that core radio revenue, excluding political advertising, was up approximately 1.0%, and the acquisition of additional Indianapolis stations helped push core radio revenues up approximately 10.9%. However, margins declined slightly to 26% from 28% in the first half of 2022.
The company's cable TV division experienced ratings and delivery shortfalls in Q1 2023, leading to reduced advertising revenues. However, ratings and advertising revenues stabilized in the subsequent quarters. The return of Tom Joyner's Fantastic Voyage in Q2 contributed $1.75 million to Reach Media's revenues, but also led to an increase in SG&A expenses.