Urban One Reports ‘Difficult’ Q4, Warns Of Covid-19 Cancellations.

Story by Inside Radio

In what CEO Alfred Liggins called a “difficult quarter,” Urban One’s radio division revenues fell 11.6% to $45.0 million during fourth quarter 2019, compared to $50.8 million one year earlier. Radio ad revenues declined 9.2% to $48.4 million from $53.3 million, mainly due to the loss of political. Excluding political, same station radio billings were down 2.9%.

Radio took the biggest hits in Baltimore, Cincinnati, Cleveland, Columbus, Detroit, Indianapolis, Philadelphia, Raleigh and St. Louis with Dallas showing growth. Detroit revenues were down because the company sold urban AC WDMK-FM in August 2019.

Billings at Reach Media, which syndicates shows from Rickey Smiley, DL Hughley, Russ Parr and others, tumbled 14% to $8.0 million from $9.3 million.

Urban One posted a Q4 loss of $7.9 million, or 18 cents a share, after posting a profit for the same period a year ago.

The company posted total revenues of $105.9 million for the quarter, down 6.8% from a year ago. Broadcast and digital operating income was $34.3 million, a drop of $10.3 million compared with the same period in 2018.

Revenues at the company’s TV One cable segment dipped 2% to $44.8 million compared to $45.9 million for the same period in 2018, mainly due to soft ad sales. Cable TV affiliate fees were flat.

Digital and events were bright spots. Digital revenues rose 6% to $8.6 billion from $8.1 billion in Q4 2018 while events and other revenue grew 71.4% to $3.4 billion.

In a press release Friday morning ahead of the company’s earnings call with investors, Liggins said the 2.9% same-station radio revenue dip was “in line with our previously reported low-single digit decline in core pacings. With tough political comps (-83.5%) this made for a difficult quarter, but in line with expectations.”

For the full year, Urban One reported profit of $925,000, or 2 cents per share. Revenue was $436.9 million.

First quarter 2020 got off to strong start with January and February radio revenues up, thanks to robust political spending. But the Covid-19 outbreak “has reversed that growth, with cancellations from clients whose businesses revolve around events, travel, leisure and entertainment,” Liggins said. “On a same station basis our radio division is currently pacing up mid-single digits including political, and down low single digits excluding political revenue.”

Because of the pandemic, Urban One has postponed Tom Joyner's Fantastic Voyage cruise, a big moneymaker for the company, which Liggins warned will impact Q2 revenue and cash flow. “We are monitoring all of our larger public events with a view towards mitigating risk and keeping our employees, clients and listeners safe,” Liggins said.