Local revenue dropped 5.7%, national was up nearly 2%, digital revenue declined 15.4% and Reach Media was down over 4%. The company had $14 million worth of ad revenue cancellations in the month of April with Q2 pacing down about 58%.
Most radio companies reporting earnings believe April was the bottom. However, even though May and June look better, Q2 is going to be way off 2019 revenue numbers, and it’s unknown how long a recovery will take. CEO Alfred Liggins says he has not yet seen much of a revenue bounce-back due to states re-opening across the country.
All of the revenue negativity is due to the coronavirus pandemic which forced most businesses across the country to close. And, like most other radio companies, both January (up 3.2%) and February (up 13.2%) started off strong at Urban One, then in March the virus took hold (down 14.1%) and in April the bottom fell out as revenue was chopped by more than half.
Urban One found a way to save $30 million in Q2 which included $8 million in employee salary cuts, layoffs and furloughs. The company also tapped into a $27 million credit line.
Liggins said, “we’re optimistic and hopeful we’ll climb out of this. We’re super focused on liquidity, cost controls and grabbing revenue share.”
He also believe there will be more opportunity for consolidation when this crisis passes because, he believes, other radio companies will be levered higher than they have been in the past leading to them wanting to do more.