Urban One posted its complete 2023 financials along with its Q1 2024 earnings on June 7, just under the compliance deadline set by the Nasdaq stock exchange.
After a delay due to additional documentation and audit, Urban One announced it would complete its 2023 financials by May 31, but the company ended up needing the whole window from Nasdaq.
For 2023, the total operating income for the year dipped slightly from $484.6 million to $477.7 million, marking a 1.4% decrease. However, soaring operational costs caused a significant jump in overall income, finishing 2023 at $4.5 million – down 87% from 2022’s $36.6 million.
Urban One attributed the downturn to reduced performance across all segments, compounded by lower revenues and heightened expenses.
A breakdown reveals that the radio broadcasting sector saw operating income fall from $47.5 million in 2022 to $34.6 million in 2023, a drop of $12.9 million. This reduction was primarily due to decreased net revenues coupled with rising costs. Reach Media also experienced a slight decrease in operating income, down from $18.9 million in 2022 to $17.9 million in 2023, as higher expenses slightly offset increased revenue.
The digital segment’s operating income was reduced to $20.0 million in 2023 from $21.8 million in 2022, impacted mainly by lower revenues and increased operational costs. Similarly, the cable television segment saw a significant decrease, with income dropping to $95.5 million in 2023 from $113.4 million in 2022, primarily due to reduced revenues and escalated expenses.
For Q1 2024, Urban One reported a total net revenue of $104.4 million, a decrease from the previous year’s $109.8 million. This decline can be seen across multiple segments, with radio broadcasting experiencing a slight dip from $35,754 thousand in 2023 to $33,731 thousand in 2024. However, the digital segment showed a spark of growth, jumping from $10.9 million in 2023 to $13.9 million in 2024.
Political advertising also showed a slight increase from $1.1 million in 2023 to $1.4 million in 2024.
Overall, the company reported net income of $7.5 million for Q1 2024, indicating some financial stabilization year-over-year from Q1 2023’s net loss of $2.9 million. Total operating expenses amounted to $91.5 million compared to $101.7 million in the previous year.
