Urban One Shows Positive Momentum In Second Quarter

Story by Inside Radio

Urban One reported a 5.5% increase in net revenue for second quarter 2019, at $121.6 million, with broadcast and digital operating income of $46.3 million, up 4.5% year over year. In addition, the media company offered investors a notable increase in radio advertising, +6.8%. The radio division is pacing up 8% for third quarter, “with robust demand for national business in our larger markets,” said Urban One CEO/President Alfred Liggins, ahead of the company’s second quarter investors call Thursday morning.

Also for the quarter ended June 30, Urban One’s operating income was $30.5 million, compared to $24.8 million for the same period in 2018. Net income took a sizeable hit, at $6.6 million or $0.15 per share—compared to net income of $23.6 million or $0.51 per share for the period last year. Adjusted EBITDA, a measure of cash flow, was $41.1 million for the three months, compared to $39.0 million for the period in 2018.

TV advertising at Urban One was up 9.4%, and digital was up 16.8%. Syndicated arm Reach Media benefited from its annual cruise event, with the Tom Joyner Fantastic Voyage posting 12% year over year revenue growth. Overall event revenues were up 20.4%. Cable TV took a hit as the company invested in additional programing and marketing expenses related to the “DL Hughley Show’; while political advertising all but collapsed in the quarter company compared to Q2 2018, down 73.2%.

“Overall, I am happy with our progress this quarter, and believe we can carry this positive momentum into the second half of the year,” Liggins added.