It's hard out here for many individuals and businesses with COVID-19 still running rampant in the United States. Radio is no different – with events not happening, people not working, and everyone counting their coins, radio advertising is down. Tough choices are being made constantly behind the scenes and their are many in the industry making sacrifices. The good news is the show must go on and as reported by Urban One via their second quarter report, TV is still holding strong and keeping the party going. Check out Urban One and CEO, Alfred C. Liggins assessment of the second quarter below.
Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended June 30, 2020. Net revenue was approximately $76.0 million, a decrease of 37.5% from the same period in 2019. Broadcast and digital operating income1 was approximately $30.2 million, a decrease of 33.1% from the same period in 2019. The Company reported operating income of approximately $20.4 million for the three months ended June 30, 2020, compared to approximately $29.1 million for the same period in 2019. Net income was approximately $1.4 million or $0.03 per share (basic) compared to net income of approximately $6.6 million or $0.15 per share (basic) for the same period in 2019. Adjusted EBITDA2 was approximately $24.5 million for the three months ended June 30, 2020, compared to approximately $39.6 million for the same period in 2019.
Alfred C. Liggins, III, Urban One's CEO and President stated, “The economic impact of Covid-19 is fully evident in our second-quarter numbers: radio advertising was down 51%, and event revenues were -96% year over year. Our TV and digital businesses fared better, with TV advertising revenue down 4.4% and digital -20%, highlighting the benefits of our diversified media asset base. We had to make tough decisions to reduce costs, and I am proud of how our team, including on-air talent, made sacrifices and worked diligently to keep us operating smoothly through the pandemic. With the issue of racial equality featuring so prominently around the world, it is critical that diverse voices continue to be heard and I thank all our staff and talent for their exceptional work engaging with our audience and clients. The outlook for the rest of 2020 remains uncertain, but I anticipate a similar pattern of strong performance from our TV business offsetting some of the weakness in radio advertising and events. On a same station basis, our Q3 core radio business is currently pacing -41% and we continue to see sequential improvement. Our cost saving measures remain in place, liquidity is strong with $70 million of cash on the balance sheet, and I firmly believe that Urban One will continue to successfully navigate our way through these unprecedented times.”
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