URBAN ONE, INC.UONE
URBAN ONE, INC. Segments Disclosure
20. SEGMENT INFORMATION
Reportable segments represent components of a company for which separate financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”), which is our President and Chief Executive Officer (CEO), in determining how to allocate resources and assess performance. Our four reportable segments include the following:
(i) Radio Broadcasting consists of all radio broadcast results of operations as well as low powered television operations.
(ii) Reach Media consists of the results of operations for the related activities and operations of the Company’s syndicated radio shows.
(iii) Digital includes the results of the Company’s online business, including the operations of Interactive One, as well as the digital components of the Company’s other reportable segments
(iv) Cable Television includes the results of operations of TV One and CLEO TV.
In addition to the reportable segments above, the Company has a "corporate/eliminations/other” category that includes business activities not directly attributable to a specific reportable segment. These four segments operate in the United States and are consistently aligned with the Company’s management of its businesses and its financial reporting structure.
In the ordinary course of business, our reportable segments enter into transactions with one another. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues and expenses recognized by the segment that is counterparty to the transaction are eliminated in consolidation and do not affect consolidated results.
This segment structure reflects the financial information and reports used by the Company’s management, specifically its CODM, who is responsible for reviewing segment performance and making decisions regarding resource allocations, performance assessments, as well as our current operating focus. Asset and asset related information are not key measures used by the CODM. The CODM does not regularly receive or review information pertaining to assets by segments or in totality.
The Company evaluates the operating performance of its reportable segments based on financial measures such as segment net revenues and adjusted EBITDA, a non-GAAP measure. Effective in the fourth quarter 2024, The CODM evaluates each segment’s performance based on adjusted EBITDA, guiding strategic decisions to align with company-wide goals, assess the operating results and performance of the segments, identify strategies to improve performance, and allocate resources to each segment. Adjusted EBITDA is used to facilitate a comparison of the ordinary, ongoing and customary course of our operations on a consistent basis from period to period and provide an additional understanding of factors and trends affecting our business segments. Significant segment expenses provided to the CODM, and included within adjusted EBITDA include programming and technical, sales and marketing, and general and administrative. Prior year information was revised to reflect adjusted EBITDA as the segment profit measure.
Detailed segment data for the years ended December 31, 2024 and 2023 is presented in the following tables:
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Consolidated | Radio Broadcasting | Reach Media | Cable Television | Digital | Corporate/ Eliminations/ Other | ||||||||||||||||||||||||||||||
| NET REVENUE | $ | 449,674 | $ | 165,803 | $ | 47,260 | $ | 168,199 | $ | 70,748 | $ | (2,336) | |||||||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||||||||||||||
| Programming and technical | 135,235 | 46,357 | 14,475 | 60,610 | 14,683 | (890) | |||||||||||||||||||||||||||||
| Sales and marketing | 130,858 | 49,521 | 16,003 | 31,412 | 35,695 | (1,773) | |||||||||||||||||||||||||||||
| General and administrative | 93,979 | 30,693 | 4,148 | 17,061 | 2,310 | 39,767 | |||||||||||||||||||||||||||||
| Other segment income (expenses) | 13,861 | 906 | (596) | 567 | (468) | 13,452 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 103,463 | $ | 40,138 | $ | 12,038 | $ | 59,683 | $ | 17,592 | $ | (25,988) | |||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Consolidated | Radio Broadcasting | Reach Media | Cable Television | Digital | Corporate/ Eliminations/ Other | ||||||||||||||||||||||||||||||
| NET REVENUE | $ | 477,690 | $ | 156,214 | $ | 52,888 | $ | 196,207 | $ | 75,495 | $ | (3,114) | |||||||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||||||||||||||
| Programming and technical | 136,884 | 43,705 | 16,207 | 62,935 | 15,490 | (1,453) | |||||||||||||||||||||||||||||
| Sales and marketing | 130,240 | 47,931 | 17,660 | 30,539 | 36,317 | (2,207) | |||||||||||||||||||||||||||||
| General and administrative | 95,783 | 29,967 | 4,283 | 15,158 | 3,708 | 42,667 | |||||||||||||||||||||||||||||
| Other segment income (expenses) | 16,208 | 1,459 | 156 | 1,189 | 813 | 12,591 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 130,991 | $ | 36,070 | $ | 14,894 | $ | 88,764 | $ | 20,793 | $ | (29,530) | |||||||||||||||||||||||
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (in thousands) | |||||||||||
| Adjusted EBITDA to net (loss) income from consolidated operations reconciliation | |||||||||||
| Adjusted EBITDA | $ | 103,463 | $ | 130,991 | |||||||
| Corporate Development Costs | 8,658 | 12,872 | |||||||||
| Employment Agreement Award and other compensation | — | 169 | |||||||||
| Severance-related costs | 2,712 | 669 | |||||||||
| Investment expense from MGM National Harbor | — | (115) | |||||||||
| Loss from ceased non-core business initiatives | 2,491 | 2,613 | |||||||||
| Stock-based compensation | 5,716 | 9,975 | |||||||||
| Depreciation and amortization | 7,716 | 7,101 | |||||||||
| Impairment of goodwill and intangible assets | 151,755 | 129,278 | |||||||||
| Interest and investment income | 5,980 | 6,967 | |||||||||
| Interest expense | 48,571 | 56,196 | |||||||||
| Gain on retirement of debt | 23,271 | 2,356 | |||||||||
| Other income, net | 896 | 96,084 | |||||||||
| (Loss) income from consolidated operations before provision for income taxes | (94,009) | 17,640 | |||||||||
| Provision for income taxes | 9,759 | 7,944 | |||||||||
| Net (loss) income from consolidated operations | $ | (103,768) | $ | 9,696 | |||||||
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (in thousands) | |||||||||||
| Capital expenditures by segment are as follows: | |||||||||||
| Radio Broadcasting | $ | 4,994 | $ | 7,105 | |||||||
| Reach Media | 73 | 119 | |||||||||
| Digital | 1,560 | 1,172 | |||||||||
| Cable Television | 81 | 142 | |||||||||
| All other - corporate/eliminations | 611 | 599 | |||||||||
Consolidated (a) | $ | 7,319 | $ | 9,137 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.