Radio One Q2 2026 Earnings Call Transcript

Quartr
Provided by Quartr
August 4, 2026

Key Takeaways

  • Negative Sentiment: Second-quarter results remained weak: Consolidated revenue fell 6.4% year over year to $85.8 million, while adjusted EBITDA declined 16% to $11.7 million. Radio, Reach Media, digital, and cable television all reported revenue declines.
  • Negative Sentiment: Urban One lowered its 2026 adjusted EBITDA guidance from approximately $60 million to the mid-$50 million range because of a difficult first half, and management indicated that free cash flow expectations are now likely below the previously discussed $40 million level.
  • Positive Sentiment: The company repurchased $23.5 million of 2031 second-lien notes at 42% of par, reducing long-term debt by $60.2 million year to date and generating approximately $4.6 million in annualized interest savings.
  • Positive Sentiment: Management expects political advertising to improve results in the second half, citing competitive races in Georgia, Ohio, Texas, North Carolina, and Indiana; radio has approximately $11.1 million of political revenue budgeted, although the ultimate contribution remains uncertain.
  • Neutral Sentiment: Urban One completed its Dallas radio acquisition in July and said the stations are off to a good start, while also selling KZMJ and two Charlotte licenses. Separately, TV One continues to face linear subscriber churn and advertising pressure from streaming competition, although early third-quarter prime delivery improved sequentially.
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Earnings Conference Call
Radio One Q2 2026
00:00 / 00:00

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Urban One 2026 second quarter earnings call. As a reminder, this conference is being recorded. We will begin this call with the following safe harbor statement. During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. Urban One cautions you that certain factors, including risks and uncertainties referred to in the 10-Ks, 10-Qs, and other reports it periodically files with the Securities and Exchange Commission, could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of August 4th, 2026. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation.

Operator

In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. These measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www.urbanone.com. A replay of the conference call will be available from 2:00 P.M. Eastern Time, August 4th, 2026, until 11:59 P.M. Eastern Time on Tuesday, August 11th, 2026. Callers may access the replay by calling 1-800-770-2030. International callers may dial direct 1-609-800-9909. The replay access code is 3701023. Access to live audio and a replay of the conference will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for seven days after the call. No other recordings or copies of this call are authorized or may be relied upon.

Operator

I will now turn the call over to Alfred C. Liggins, Chief Executive Officer of Urban One, who is joined by Peter Thompson, Chief Financial Officer. Mr. Liggins, please go ahead.

Alfred C. Liggins
CEO at Urban One

Also joining us as usual is Jodi Drew, our Chief Financial Officer at TV One, Kris Simpson, our General Counsel, and Karen Wishart, our Chief Administrative Officer. As you've seen in the press release and the results that have come out, we have seen sequential improvements over Q1, but still, we are in a rate of decline, less decline than Q1, however, still a tough first half of the year. We are expecting things to pick up as we move into Q3, as political starts to become more and more of a factor in our numbers. Even though it's an unknown, we're hopeful because of competitive races in Ohio, Texas, Georgia, North Carolina, and Indiana. During the quarter, we have continued to reduce our leverage with market repurchases of our debt.

Alfred C. Liggins
CEO at Urban One

We spent about $23.5 million purchasing our 2031 Second Lien Notes at an average price of approximately $0.42 on the dollar. That's about a $60.2 million long-term debt reduction and an annual interest savings of $4.6 million. Because of the weak first half of the year, we have decided to adjust our guidance, down from 60 to the mid-50s, even though we still don't know exactly where political's going to come out. Also, we closed on our Dallas acquisition. I believe that was it August 17th?

Peter Thompson
CFO at Urban One

Yeah.

Alfred C. Liggins
CEO at Urban One

That's off to a good start, and that's going to contribute significantly to the last five and a half months. There's potential upside there, still, out of an abundance of caution and trying to be more accurately elected to bring the guide down. That could change, but at this point in time, we're saying mid-50s. I'm going to turn it over to Peter to go into the details of the numbers, then we can open it up for Q&A. Peter?

Peter Thompson
CFO at Urban One

Thanks, Alfred. Consolidated net revenues for the three months ended June 30th, 2026 was approximately $85.8 million, which was 6.4% decrease year-over-year. Net revenue for the radio broadcasting segment was $35.3 million, a decrease of 3.9% year-over-year. Excluding political, net revenue for radio was down 6.6% year-over-year. According to Miller Kaplan, our local ad sales were down 10.1% against a market that was down 7.8%. Our national advertising sales were down 1.5% against a market that was down 4.6%. We outperformed on national and underperformed a little on local. Our largest ad category was services, which was down approximately 0.7%, primarily due to legal services. Government public category was up 14.5% as a result of political spending. The telecommunications category was up 16.9%. All the other major categories were down in the quarter.

Peter Thompson
CFO at Urban One

Net revenue for Reach Media was $4.8 million in the same quarter, decline of 10.6% from the prior year. Adjusted EBITDA on Reach was a loss of $1 million. We just continue to see declines in net revenue available for us to participate in. Net revenue for digital segments down 8.4% at $9.4 million. Decrease was driven by the decrease in national direct revenue streams as a result of reductions in DEI-focused spending, a lot of client spending in general due to macroeconomic concerns. We recognized approximately $37.1 million of revenue from our Cable Television segment during the quarter, decrease of 7.4%. Cable television advertising sales were down 9.6%, with strong competition from the NBA playoffs, that contributed to prime delivery declines of 21% year-over-year for persons 25-54.

Peter Thompson
CFO at Urban One

This, along with a continued weak scatter market, led to more commercial units continuing to be allocated to direct response at lower average unit rates. Cable television affiliate revenue was down by 4.5%, driven by subscriber churn as linear cable continues to decline, and that was partially offset by an increase in subscriber rates. Traditional linear cable TV subscribers at TV One, as measured by Nielsen, finished Q2 at 27.3 million, compared to 34.3 million at the end of Q2 2025. Inclusive of virtual subscribers, TV One finished with 30.5 million Nielsen subscribers, compared to 35.4 million in the second quarter of 2025. Decline obviously being driven by linear churn. CLEO TV had 27.2 million traditional linear Nielsen subs and 31.1 million inclusive of virtual subscribers.

Peter Thompson
CFO at Urban One

Through the first four weeks of Q3 2026, TV One is up by 4% in prime persons 25-54 delivery compared to Q2 2026, and only down 3% compared to Q3 2025. Operating expenses, excluding depreciation, amortization, stock-based compensation, and impairment charges, were approximately $75 million for the three months, compared to approximately $78.1 million for the comparable period in 2025. This decrease was mainly driven by sales and marketing expense decreases in the operating segments. Radio expenses were down by 1.6%, or $500,000, driven primarily by lower revenue and lower bad debt reserves, lower expenses connected to revenue, sales commission, et cetera. Reach operating expenses were down 17%, or $1.2 million, primarily due to lower bad debt reserves. Operating expenses in the digital segment were down 8.7%, driven by a decrease in traffic acquisition costs, commissions, head count savings, and bad debt reserves.

Peter Thompson
CFO at Urban One

Operating expenses in the cable television segment were up 4.1%, driven by a combination of programming expenses and accounted for new executive agreements at TV One. Operating expenses in corporate, down by approximately 16.7%, driven by lower professional service fees and other compensation-related costs. Consolidated adjusted EBITDA was $11.7 million, down 16%. Consolidated broadcast and digital operating income was approximately $22.2 million, a decrease of 13.7% year-over-year. Interest expense in the P&L was down to approximately $2.1 million, down from $9.7 million last year. It's reflecting the debt repurchase accounting and lower effective interest rates under the troubled debt restructuring rules. We made cash interest payments of approximately $5 million during the quarter.

Peter Thompson
CFO at Urban One

The semiannual cash interest payment for the 2030 and 2031 notes was made on April 1st, the next payment is due on October the 1st for the full 180 days of accrued interest, which is approximately $12.1 million. During the three months ended June 30th, we repurchased approximately $23.5 million of our 2031 second lien notes at a weighted average price of 42% of par. Debt repurchase of the 2031 second lien notes in the second quarter reduced the outstanding long-term debt balance to $303.2 million. Year-to-date, that's a total reduction in long-term debt of $60.2 million, an annualized interest saving of $4.6 million. Under the troubled debt restructure account, the long-term debt on the balance sheet includes a premium which amortizes over the remaining term, we've separated that out in the press release you can see what that is.

Peter Thompson
CFO at Urban One

We drew an additional $10 million in the second quarter under the asset-backed facility, which resulted in total outstanding balance there of $20 million. We made a further additional draw of $7 million during the quarter. Then we just repaid this week $5 million in the third quarter. We're at $22 million drawn there, and we have current borrowing capacity of an incremental $24.1 million. We recognized approximately $13.9 million of goodwill impairment charge and approximately $300,000 of long-lived asset impairment charges related to Reach Media. We recorded depreciation and amortization expense of approximately $6.2 million, which includes $4.4 million of amortization for the radio broadcasting license and TV One trade name. Benefit from income taxes was approximately $1.7 million. We paid cash taxes, net of refunds, in the amount of approximately $500,000. Capital expenditures for the quarter are approximately $1.7 million.

Peter Thompson
CFO at Urban One

Net loss was approximately $7 million, or $1.58 per share, compared to a net loss of $77.9 million, or $17.41 per share for the same quarter of 2025. During the three months, we did not repurchase any shares of Class A common stock. We repurchased 129,543 shares of Class D common stock for approximately $600,000 at an average price of $4.50. That was under the annual repurchase program for employee stock. We also executed stock-based tax repurchases of 145,513 shares of Class D common stock, which is approximately $700,000 at an average price of $4.52 during the quarter. As of June 30th, the current contracts outstanding debt balance was approximately $323.2 million, including the ABL draw. Ending unrestricted cash was $15.4 million, resulting in net debt of approximately $307.9 million, compared to $46.2 million of LTM reported adjusted EBITDA for a total leverage ratio of 6.66x.

Peter Thompson
CFO at Urban One

As we previously announced in March, we agreed to sell our WMXG and WLNK radio broadcast licenses in Charlotte, North Carolina, to unrelated third parties for approximately $0.7 million and $4.2 million, respectively. We completed both sales on June 1st, 2026. Recognized a gain of $4.7 million. In April, we entered into an agreement to acquire Service Broadcasting Group in Dallas, Texas, including radio stations KKDA and KRNB for $22 million. Same time, we also entered into agreement to sell radio station KZMJ to Fuzion Dallas, LLC for $6 million. We completed on the sale of KZMJ on July 6th and recognized a gain of $3.2 million in the third quarter. We also completed the acquisition of Service Broadcasting Group on July 17th, 2026. With that, I'll hand back to Alfred.

Alfred C. Liggins
CEO at Urban One

Thank you, Peter. Operator, can you go to the lines for Q&A, please?

Operator

We will now begin the question and answer session. To ask a question, press star, then 1 on your telephone keypad. Our first question will come from the line of Ben Briggs with StoneX Financial. Please go ahead.

Ben Briggs
Analyst at StoneX Financial

Hey, good morning, guys. Thank you for taking the time to take the questions. I've got a couple here. A lot of puts and takes here, but obviously, we've got midterms coming up. I know that you mentioned political is going to be a tailwind. Is there any way you can quantify that or even give some, I guess, relative guidance versus what it was like previously? I know that with the Dallas acquisition, there may be some changes as far as what the political demand refers to because—

Alfred C. Liggins
CEO at Urban One

Yeah, that's difficult. We don't know yet how much money people are going to spend. We won't know until we actually get into the negotiation of it. It's also going to depend on exactly how competitive people think it's going to be. I do know that we've got radio budgeted at about $11.1 million. In 2022, we did basically $13 million. We're saying that we're not going to be quite as robust as 2022, but—

Peter Thompson
CFO at Urban One

Yeah, wasn't a big Georgia runoff that year?

Alfred C. Liggins
CEO at Urban One

—There was a big Georgia runoff, right? It was a runoff, so you kind of got two bites of the apple. Georgia's expected to be competitive again, right, in the off-off race, but there won't be a runoff. You just don't know. It's hard to tell. It feels like it's going to be. Fortunately, what we can tell, we can look at polls and say where the races are close, right? Close in Georgia. The governor's race looks close there. Keisha Lance Bottoms, again, I forgot the Republican candidate's name. That looks close. She's supposedly kind of behind the curve on fundraising, which I don't really understand given on a competitive race like that, why wouldn't people be throwing money at it? There's all these wild cards, anyway, let's just say it's going to be competitive.

Alfred C. Liggins
CEO at Urban One

Indiana's going to be competitive on a, I think it's a state attorney general's race. Ohio is supposedly competitive with Sherrod Brown, trying to reclaim a seat in the Senate. Everybody in the country has been talking about Texas and James versus Ken. Anything could change, right? The gap could widen and people feel like it's less competitive. Hope that doesn't happen. Then also the other wild card is how much do advertisers spend with radio versus spending with digital and TV, et cetera. Suffice it to say, it feels like that there are multiple competitive races in places that we have stations. You're right, Dallas should be different for us because we've got a very strong position against the African American audience, the Democrats looking more competitive. That should bode well for us, but exactly how well for it, I can't tell you.

Alfred C. Liggins
CEO at Urban One

If you can find somebody who can actually really predict what the ad dollar market's going to be in this industry you probably could make money with them on call sheet.

Ben Briggs
Analyst at StoneX Financial

I will keep that in mind. I will keep that in mind.

Alfred C. Liggins
CEO at Urban One

Those are the races that we feel will help us, right? Yeah.

Ben Briggs
Analyst at StoneX Financial

Yep. I think you said you've got about $11.1 million budgeted for political in fiscal 2026—

Alfred C. Liggins
CEO at Urban One

Correct

Ben Briggs
Analyst at StoneX Financial

—in radio. Will anything flow through to TV from political?

Alfred C. Liggins
CEO at Urban One

Yeah. TV usually only gets political in a presidential. Digital should see some, but TV, no.

Ben Briggs
Analyst at StoneX Financial

Got it.

Alfred C. Liggins
CEO at Urban One

That's right though, right? Yeah.

Ben Briggs
Analyst at StoneX Financial

Are you expecting much from digital?

Alfred C. Liggins
CEO at Urban One

I don't remember what the budget is. I think it's maybe a couple million dollars or something like that. Yeah, or maybe $1 million. Yeah, maybe it's $1 million. Digital can obviously be geo-targeted, right?

Ben Briggs
Analyst at StoneX Financial

Yep. Okay. Kind of moving along, I know on the last call, you guys discussed some AM towers that might get sold. Is there anything to report there?

Alfred C. Liggins
CEO at Urban One

Nothing to report now. It's a process. It's ongoing right this second. We feel good that we're going to have a positive outcome, and we think there'll be a positive outcome this year.

Ben Briggs
Analyst at StoneX Financial

Got it. Okay. Thank you. Last one from me is, I know you moved guidance from $60 million to mid-50s. I think on the last call, there had been a discussion of about $40 million of free cash flow expectation in 2026. Is it safe to say, using the mid-50s EBITDA, that it would be about $35 million of free cash flow expectation now? Am I thinking about that the right way?

Peter Thompson
CFO at Urban One

Yeah. There's some more puts and takes on non-cash stuff, like ADU burning through that, writing off ADU balances. It's probably lower than that now, just because of the composition of how we're getting to the revenue and to the EBITDA number.

Ben Briggs
Analyst at StoneX Financial

Okay. All right. Fair enough. Listen, I really appreciate the time. Thank you again for taking the questions, and good luck in the third quarter.

Alfred C. Liggins
CEO at Urban One

Thank you.

Peter Thompson
CFO at Urban One

Thank you.

Operator

Our next question will come from the line of Aaron Watts with Deutsche Bank. Please go ahead.

Aaron Watts
Aaron Watts
Analyst at Deutsche Bank

Hey, everyone. Thank you for taking my questions. I've got a couple, if I may, around the ad environment. I'll start on the radio side. I see the sequential improvement from first quarter, but I think 2Q came in a little weaker than you had guided us last quarter. I appreciate it's difficult to be around a percentage point smart in advance on radio ads, but any factors you'd call out that maybe pushed 2Q a little softer than you had originally anticipated back in May on your last call?

Peter Thompson
CFO at Urban One

Yeah, I think local came in lighter than we thought, and we underperformed the market locally. Within that, obviously, it's not really one category. It was just across the board. So, yeah, the pacing that we gave on the last call, we did miss those a little bit, and I think almost all of that was in local.

Aaron Watts
Aaron Watts
Analyst at Deutsche Bank

Peter, anything you'd call out that is right now pushing national to be a bit firmer than local?

Peter Thompson
CFO at Urban One

Not really.

Aaron Watts
Aaron Watts
Analyst at Deutsche Bank

Okay

Peter Thompson
CFO at Urban One

The way it's been. We've been underperforming the marketplace nationally. I think we just righted that ship a little bit.

Aaron Watts
Aaron Watts
Analyst at Deutsche Bank

Okay. If I look ahead to your 3Q radio guide down 2.8%, does that compare to the -3.9% you just reported in 2Q? Does that imply some firming in the underlying core ad market, or is that purely the political lift, Alfred, you were just talking about a minute ago?

Alfred C. Liggins
CEO at Urban One

Look, you've got political starting to seep in there. You've got improvements in our Washington, D.C. market, over what it was a year ago based on some format changes. Atlanta is doing better than we thought it in Q3, that's before political jumped in there. I think I looked at the Atlanta forecast for political.

Alfred C. Liggins
CEO at Urban One

It's not a huge number as Q3 as I remember.

Peter Thompson
CFO at Urban One

Yeah. We don't have a lot of political on the books yet.

Alfred C. Liggins
CEO at Urban One

Yeah.

Peter Thompson
CFO at Urban One

Q3, we've only

Alfred C. Liggins
CEO at Urban One

Yeah

Peter Thompson
CFO at Urban One

quarter million dollars.

Alfred C. Liggins
CEO at Urban One

Yeah

Peter Thompson
CFO at Urban One

the pace in that's what's more

Alfred C. Liggins
CEO at Urban One

Yeah

Peter Thompson
CFO at Urban One

roughly the same.

Alfred C. Liggins
CEO at Urban One

We're struggling in Indianapolis, which has been a struggle all year long. Houston had a great Q1, tough Q2, starting to do better again in Q3 and Q4. We think we lost the momentum because of World Cup, believe it or not, because so many people took money and put it against that we felt like it really hurt us, particularly in Houston. Yeah.

Aaron Watts
Aaron Watts
Analyst at Deutsche Bank

Okay. Now, that is helpful context. I guess one last one for me, shifting over to the TV side. Was it many of those same factors kind of weighing on TV advertising or anything in particular to the TV side that you would call out that's pushing advertising?

Alfred C. Liggins
CEO at Urban One

TV's more of an inventory problem. More CTV impressions out there, weaker scatter market means that dollars start to default. We're going into upfront now, right? Upfront shows that you've got less advertisers coming for linear. Then when you look at CTV, you've got more impressions because of Netflix and Amazon. Then you've got a weaker scatter market. Long story short, it's putting pricing pressure on ad rates, particularly as ad rates start to default to direct response. I think those are the same kind of macro trends that folks are seeing in the linear cable business. I haven't been following everybody's numbers, but when I see Warner Bros. Discovery report, et cetera, it's kind of similar factors.

Aaron Watts
Aaron Watts
Analyst at Deutsche Bank

Okay. All right. Great. Thank you for the time. Appreciate the thoughts.

Alfred C. Liggins
CEO at Urban One

Thank you.

Operator

Our next question will come from the line of Dennis Pannullo with Lapan Partners. Please go ahead.

Dennis Pannullo
Analyst at Lapan Partners

Hi. Good morning, gentlemen. Thanks for taking the questions. Most of my questions are actually already answered. I just have one last question. You guys had, what, about 14.1.This question is for Mr. Thompson, $14.1 million in non-cash goodwill, intangibles, write-downs?

Peter Thompson
CFO at Urban One

Yeah.

Dennis Pannullo
Analyst at Lapan Partners

That sound about right?

Peter Thompson
CFO at Urban One

Yes. That was all in Reach Media. That was all other networks. Yeah.

Dennis Pannullo
Analyst at Lapan Partners

Just because the way you guys word your press releases and don't actually mention or specifically talk about that, what would the bottom line have looked like without that $14.1 million non-cash write-down?

Peter Thompson
CFO at Urban One

Well, look, we add it back in adjusted EBITDA, because it is non-cash. In the headline numbers that we look at when we talk about the $11.7 million adjusted EBITDA, it's already added back there. Obviously, on net loss and EPS and stuff, it's in there, and you would add that back.

Dennis Pannullo
Analyst at Lapan Partners

Of course. Being a little facetious because a lot of people don't. Some investors probably don't get what EBITDA means, I think if you broke it down just a little bit clearer for some of the investors, I think it would be helpful. Just my two cents. Again, it's only worth a penny.

Peter Thompson
CFO at Urban One

Yeah.

Dennis Pannullo
Analyst at Lapan Partners

Being that we have this non-cash issue pretty much every quarter, it just beats the hell and makes the top-line number.

Peter Thompson
CFO at Urban One

Yeah.

Dennis Pannullo
Analyst at Lapan Partners

When people look at the top-line number, they see a loss of like $11 million. It kind of just bothers us.

Peter Thompson
CFO at Urban One

Yeah. No, because those impairments do swamp the numbers. Hopefully, we're cycling through the end of that.

Dennis Pannullo
Analyst at Lapan Partners

You guys are working so hard to get your expenses down. You guys have done a great job with interest expense, obviously. You've become much more efficient in all your operations. You get no benefit for it because this non-cash stuff knocks the crap out of you guys all the time.

Peter Thompson
CFO at Urban One

Yeah. Look, it's the way that GAAP tells us we do it, and that's what we stick to. What I was saying was.

Dennis Pannullo
Analyst at Lapan Partners

I'm not saying that.

Peter Thompson
CFO at Urban One

We're cycling through, hopefully, the end of that because we moved our radio FCC licenses to be amortized. We made them final, and we amortize them. We won't see big impairments there. We've written down all of the goodwill at Reach, so there's not any more to go. I think, I'm hopeful as we move forward, we shouldn't see nearly as many of the non-cash.

Dennis Pannullo
Analyst at Lapan Partners

Yeah

Peter Thompson
CFO at Urban One

impairment charges.

Dennis Pannullo
Analyst at Lapan Partners

That's actually a great positive, and I'm glad you noted that. All I'm saying is you go into great detail about radio down x percent, the TV down x percent. You guys go into great detail in your PR, but nowhere in there does it state that there was a non-cash charge that made you guys lose $14 million. That's all I'm saying is that, maybe extrapolate that in your PR a little bit better.

Peter Thompson
CFO at Urban One

Duly noted.

Alfred C. Liggins
CEO at Urban One

Got it. Yeah.

Dennis Pannullo
Analyst at Lapan Partners

Gentlemen, have a great day, and thank you for taking the call.

Alfred C. Liggins
CEO at Urban One

Thank you so much.

Peter Thompson
CFO at Urban One

Thank you.

Operator

Again, for questions, press star one, our next question will come from the line of Adam Jacobson with RBR.com. Please go ahead.

Adam Jacobson
Analyst at RBR

Hi. Good morning. Thank you for taking my question. I wanted to dive in a little bit more regarding the impairment charges because, if you look at the overall numbers and you look at the portrait of Urban One, your net loss was basically reflective of the impairment charge lowering to $14.16 million from $130.08 million. As the last gentleman noted, the adjusted EBITDA here is certainly very important, and you've been talking a lot about political dollars. Let's move ahead to 2027. Political is cyclical, so what are your plans in terms of the overall portrait for Urban One past political? Are you going to be focusing and doubling down on the multicultural story? Are you going to be looking at some of the non-multicultural assets and questioning, well, is there opportunity there, or is that a non-essential asset?

Adam Jacobson
Analyst at RBR

Just wondering what the post-political portrait is for you, or is that still a little too early to ask?

Alfred C. Liggins
CEO at Urban One

I think we have shown that we are open to expanding outside of our core African American targeted demographic, particularly as it relates to our radio operation and in particular as it relates to markets where we already operate and we're building scale. I think I've said that we believe that that does give us more arrows in our quiver to help drive local ad solutions for our clients in those local markets, and we've seen success in that. I think you'll see us continue to do that. Managing political versus non-political years is something that we do every two years, and so we know there won't be political next year, like there was political last year, and so we'll have an operating plan to deal with that. Yeah, we believe that there'll be further consolidation in the radio business.

Alfred C. Liggins
CEO at Urban One

We don't have any plans to go outside of our Urban footprint in television at this point. We've looked at some digital businesses that would have taken that but couldn't come to terms on price. I think the most likely place that that happens is in radio because, look, you're in the business. I'm assuming the RBR is Radio Business Report. You know that there's going to be further consolidation. There's a lot of assets for sale, and the key is to be able to acquire something that is de-levering, number one, and accretive. You also got to be able to acquire it at a value level that takes into account that even if you own everything, there's probably still pressure on your top line in a market because there's just pressure against the medium in the advertising space, right?

Adam Jacobson
Analyst at RBR

Yes.

Alfred C. Liggins
CEO at Urban One

Look, that's been helpful to us. Houston is our largest market now, and our acquisition of the Cox stations was very beneficial to us there. Dallas was an Urban acquisition, but that was a market where neither them or us were making any real money, and I think the way we're configured now will actually fix that, right? We're just trying to be smart about how we do it. By the way, the radio consolidation trail is littered with companies that went bankrupt through consolidation just for the sake of consolidation. You have to be very deliberate about it.

Adam Jacobson
Analyst at RBR

Thank you. I really appreciate your answer.

Alfred C. Liggins
CEO at Urban One

Yeah. Thank you.

Operator

This concludes the question and answer session. I'll hand the call back over to Alfred for any closing comments.

Alfred C. Liggins
CEO at Urban One

Thank you, operator, and thank you for those folks that participated and asked questions. We look forward to speaking with you either offline if you have additional questions or next quarter, and we'll have a better handle on how the year shapes up on the next conference call. Thank you.

Operator

This concludes today's call. Thank you again for joining. You may now disconnect.

Analysts
    • Alfred C. Liggins
      CEO at Urban One
    • Peter Thompson
      CFO at Urban One
    • Ben Briggs
      Analyst at StoneX Financial
    • Aaron Watts
      Analyst at Deutsche Bank
    • Dennis Pannullo
      Analyst at Lapan Partners
    • Adam Jacobson
      Analyst at RBR
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