After a troubled start to the year with Nasdaq, Urban One has announced it is back in compliance with the stock market’s listing rules. The broadcast group received a letter on June 10 reaffirming its status following the filing of its 2023 Annual Report and 2024 Q1 financials on June 7.
Urban One had identified material weaknesses in its financial controls which led to the delay, as the company continued its transition to accounting firm Ernst & Young from BDO.
With these Securities and Exchange Commission filings, Nasdaq has discontinued any efforts to delist Urban One’s securities, though it will remain under a probation of sorts due to a separate breach of the Periodic Filing Rule in 2023.
Urban One will be monitored by Nasdaq under a Mandatory Panel until December 29 to ensure sustained compliance. Any further filing infractions during this period could lead to immediate delisting actions without options for new compliance plans or cure periods, though Urban One could still request a hearing with the Nasdaq Hearings Panel.
In the Q1 2024 earnings call, CEO Alfred Liggins emphasized Urban One’s ongoing commitment to a strategic financial approach focusing on debt management and exploring accretive opportunities for corporate development.
It was reported that the radio segment’s net revenue for the current quarter is slightly down by about 3% on a same-station basis but is expected to increase in the mid-single digits overall for the second quarter. As of June 10, the Company’s cash reserves stood at approximately $162.9 million.
In the call, Liggins revealed that Urban One is considering purchasing Atlanta-based digital broadcaster Bounce TV from E.W. Scripps Co. Bounce TV targets African Americans aged 25 to 54 with a blend of original and acquired shows. Available through digital subchannels across numerous media markets, it also appears on select cable providers’ digital tiers and satellite services like Dish Network and DirecTV.
While the potential cost is still unclear, Liggins highlighted possible synergies between Urban One’s existing operations and Bounce’s programming. This interest follows a previous bid consideration for BET Media Group last year.
