During Q3, Urban One’s radio division stood out as a bright spot amid broader challenges as the company reported a year-over-year net revenue decline of 6.3%. That dip was largely driven by Cable TV, as radio even outperformed digital during the quarter.
Urban One recorded a net loss of $31.4 million, a marked year-over-year improvement from a $51.0 million loss in Q3 2023. Even so, the company reported a decline in total net revenue of 6.3% at $110.4 million, down from $117.8 million. Operating expenses saw a notable decrease, dropping from $173.9 million in Q3 2023 to $136.6 million in 2024.
CEO and President Alfred C. Liggins, III highlighted mixed performance across the company’s divisions, yet radio remained a strong spot for the Black-focused broadcaster. “On a same-station basis, our radio division finished Q3 -7.7% excluding political and -3.6% with political. We saw a strong uptick in political revenues beginning in September, with Q4 core radio revenue currently pacing down 3.0% but up 23.9% overall,” Liggins stated.
Key revenue breakdowns include $39.7 million from over-the-air radio, a slight decline from $40.2 million in Q3 2023, primarily due to reduced national advertising, partially offset by the August 2023 acquisition of a Houston station.
Liggins also noted increased margins in the company’s Reach Media segment, despite an 8.2% revenue decline due to cost reductions. The audio network recorded $10.2 million in revenue, down $1.0 million year-over-year.
According to Liggins, the company’s largest challenges remain in its cable TV segment, which continues to face subscriber churn and lower audience delivery, contributing to double-digit declines in both advertising and affiliate revenues. In a break with what we’ve seen in other major radio companies’ reporting for Q3, Urban One’s digital segment also reported a 4.1% decline in ad revenue, attributed to weaker demand from economic insecurity.
Despite revenue pressures, the company remains focused on growth opportunities, particularly as political advertising will bolster revenue for the fourth quarter and cost reduction strategies and improved debt management continue into 2025.
