URBAN ONE, INC. Q1 FY2022 earnings call

• Strong Q1 performance across all business units, exceeding analyst predictions. • Guidance: Expected to exceed the high end of $145M to $150M EBITDA guidance for 2022, but radio pacing mid-single digits due to economic slowdown and tougher comps. • Richmond update: City Council petitioned court for second referendum scheduled for November 2022, but hurdles exist with general assembly potentially blocking via budget language; legal argument exists that court order is final and unappealable. • Segment details: Radio net revenue up 13.3% YOY; Reach Media revenue up due to strong demand for African-American audience; Digital segment revenue up 49.6% driven by sponsored and branded content; Cable TV segment revenue up 22% with advertising and affiliate revenue changes.

Consolidated revenue for Q1 2022 was approximately $112.3 million, up 22.9% YOY. Radio segment: net revenue increased 13.3% YOY; local ad sales (excluding political) up 14.8%, national ad sales (excluding political) up 6.9%. Reach Media: revenue $10 million in Q1 vs $7.8 million in prior year, adjusted EBITDA up 43%. Digital segment: net revenue up 49.6% to $15.5 million, adjusted EBITDA up 94%. Cable television segment: revenue $56.4 million, up 22%; cable TV advertising revenue up 46.9% (excluding political), affiliate revenue up 1.9%. TV One had 46.8 million Nielsen subscribers at quarter end, CLEO had 41.8 million.

• Urban One expects to exceed the high end of $145 million to $150 million EBITDA guidance for 2022. • Radio is pacing mid-single digits, and tougher comps from last year are being lapped, but moderation in growth rate is seen, especially in radio. • Digital is moderating due to strong prior-year pacings.

• Hurdles with Virginia General Assembly potentially using budget language to block the second Richmond referendum until November 2023. • Macroeconomic factors causing economic slowdown, which could impact revenue growth, particularly in the radio business. • Uncertainty around political spending and its impact on revenue.

Q: Aaron Watts asked about radio pacing and whether moderation is due to economic slowdown or tough comps.

A: Alfred Liggins responded that digital is moderating due to strong prior-year pacings, while radio is moderating due to economic slowdown, with political spending being uncertain.

Q: Sundar Varadarajan inquired about guidance and casino expenses.

A: Alfred said they chose not to give new guidance to avoid disappointment, and casino expenses could increase if the second referendum is secured, with no budget set yet.

Q: Patrick Wang asked about TV One subscriber count and leverage.

A: Peter Thompson provided TV One subscriber count (46.8 million), and discussed leverage projections, stating they expect to stay below 4x leverage even with casino spending, and plan to consider strategic M&A in radio and return capital to shareholders when appropriate.