Urban One held its Q4 2022 earnings call with CEO Alfred C. Liggins and CFO Peter D. Thompson on Friday, July 7th. The company reported year-end earnings right on target, with a significant gain coming from the $137 million sale of assets in the MGM National Harbor casino, originally worth $40 million. Quarter results were released the day before.
In terms of radio business, talk rested on the company’s recently announced acquisition of four Houston radio stations from Cox Media Group for $27.5 million. Urban One has plans to spin off two stations due to FCC ownership limitations for a total of $10.5 million. This acquisition will leave the company with a net investment of around $17 million. Cash flow from this acquisition is expected to equate to at least $5 million.
The net revenue for the Radio segment experienced a significant increase of 23.8% YoY and 14.1% on a same-station basis, largely boosted by heavy political spending and the company’s corporate sales effort.
In terms of setbacks, the large delay in filing their Q4 and 2022 results and the MGM restatement was acknowledged, which caused frustration for both the company and investors. However, Urban One expressed gratitude to its investors for their patience during the challenging period.
Urban One is also focusing on diversifying its business by moving towards casino projects like its proposed Richmond, VA project and examining acquisition prospects such as the BET Media Group from Paramount.
