UONE - Earnings call transcript Q4 2017

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Urban One's 2017 Year End Earnings Conference Call. At this time, your telephone lines are in the listen only mode. Later, there will be an opportunity for question-and-answer session with instructions given at that time. [Operator Instructions] Today's conference call is been recorded. begin call to Safe this asked Statement. Harbor been this with conference following I've

those talking This live present forward-looking call, will One any future Urban call duty forward-looking In Securities you made conference projections risks and cautions of statements. disclaims this note area results replay will by could to calling a at During the may XXX-XXX-XXXX. website also Commission available One any and on The code factors, update may at Thompson, replay cause Chief certain presentation. will or future access will I may Urban Urban D. access Urban XX statements including X-XXX-XXX-XXXX March forward-looking Please X, Officer you its of today call, of XXXX. International www.urbanX.com. Financial to Liggins, Company's the who be on One Time in Executive reply relied call actual as that Officer. until conference Urban the is also direct U.S. March maybe certain of that Noon for conference uncertainties be will the C. in information referred by other call Liggins? or release, this authorized other made Eastern financial it XX:XX its will www.urbanX.com. XXXX, other call statements Access at the copies of found Callers be XXXX. Exchange or now can in audio A is regarding call. the events discuss from will measures X, website, and either PM available press its No non-GAAP this performance. One the projections corporate course with turn Peter to X to XX-Ks in its replay periodically on of These dial and March Company's code joined reports replay recordings which differ XXXXXX. indicated Chief materially One's the Mr. Urban also after callers reconciled from call to the on and some on or website or XX-Qs to One, the performance. days files by available with the GAAP, the be conference seven or be Alfred are in over this during about measures the be sharing The of upon.

Alfred Liggins

welcome an of who of call. questions the us everybody that Thank phase results the the we to we able A standpoint. XXXX, you TV from year EBITDA ago CFO to were conference at cable committed do joining to even I'm end adjusted television and and to Company's environmental a for is Also was even the any One very growing year committed challenging in the Drewer, non-political unit. year though year the top Jody of to analysis. is much, were XXXX We happy and in our detail operator, that our that today about report

go helpful to going questions. back I'm to the I'm containment, numbers cost as details our made digital going in success out our we in investment further our going diversification remain our we the investment, in our future small has and in today. continue to to more timely you digital our efforts then vision the be grow And rationalization, including where that been release, of and let come noted upside acquisitions our our We believe very we're through business. has Peter in diligent press walk that the in portfolio to strategy, verticals I a then very little color with the and actually and turned to

Peter Thompson

segment $XXX approximately the press release for Net XXXX the by on Breakout at Alfred. X.X% in the up political revenue X can D.C. is excluding by and Richmond excluding Page segment quarter down be X% breakout found found advertising net on in fourth the can posted up down Thanks, X. Houston, Page was X.X%, growth source revenue radio revenue ended political. and Dallas, was The be million a quarter and quarter. for net radio or revenue Washington XX, revenues. revenue December X.X%

retail, and entertainment, quarter. the Excluding growth up food were Philadelphia services the and sectors sectors political for and Baltimore, net healthcare, beverage travel transportation public auto and all sales financial were while Cleveland, also telecom, Advertising government and and posted down.

revenues so of currently the Net QX, since start for mid-single in X.X%, XX.X% less lower revenue to revenue our For rates from increased are demand due X% had for pacing segment year. March down than brands. we February the down Wired up quarter, XX.X% digits. is that Bossip, the finished the by Net up slightly unit were market. stations digital being down and and Madame Reach Hip driven in and network newly by a markets Media for X.X%. quarter January fourth the our our multicultural X% was down pacing steadily Noire improving acquired The first by driven weaker radio Hop beginning and the soft

down is recorded approximately XX.X in the million the X.X%. QX during television Excluding same decrease demographics. spend. in down million and reduced Operating $XX up up We Cable brands lower benefits. revenue this in end compared compensation of XX.X%, from PXXXX approximately segment a contractual by million, Reach decreased XXXX expenses $XX.X sales total the method Madame digital by for segment million income TV mainly is as of period mainly Nielsen also operating stock-based investment increase to $X.X $X.X The expense driven approximately programming Harbor tower and radio totaled to our music X.X%. incentive and Radio were Radio driven expenses XX%, by employee million of QX. approximately X% bonuses revenue was the Hop fourth down of were licensing National the equal net and QX. of Cable leaseback and due which Wired $X.X of affiliate GMR X%, gaming acquisition, X.X% about in marketing were delivery cable at PXXXX recognized was increases. digital savings the depreciation, advertising expenses addition from were expenses casino, up And subscribers SG&A in XX.X Bossip, to in the due commissions, quarter. Operating quarter, $XX.X XXXX, Noire rate newly excluding We day reported state the the the expenses to cable year-over-year. cost for driven to and impairments million expense million the Hip of by million TV fees approximately X.X% technical Maryland. our revenue amortization, were the revenue in up lower and MGM measured to by down from at compensation, by finished in acquired expenses

up Excluding expense $XXX,XXX. and this, across The quarter. Award amortization content down versus reduced and $X.X lower the were the SG&A due were corporate value HD of content digital million amortization million non-cash the Corporate by expenses. future for $X.X expenses segment acquired by to divisions; original the the pushed by into Cable expenses $X.X change CEO's recognized expense TV primarily more bonus was were in however, Airing in charge million. One expenses TV content programming the million. present definition about further $X.X down expense down has the technical year-over-year, by in the down standard content

app a million Including capital quarter The a was for or XXXX debt XXXX. approximately net to adjusted a For Net $X.X X.X% expense million. recorded approximately our million. million, of XX.X% received for $XX.X Raleigh in gain at which $X.X in tax the was million to per with quarter the Consolidated share cash discount, compared share market quarter. of continue capital million amount of Company $X.X from $XX.X amount million $XXX.X of broadcast in of and compared X.XX million refund building $X.X the income of advisors. fourth up income $XXX.X our shares as fourth retirement EBITDA no income quarter, Internet analysis in quarter from quarter. the million, same million plans XXXX filing be the $XX,XXX expenditures This in or per $XX a in $XX.X to is of connection approximately Act. notes of increased tax through compared impact Interest taxes there resulted a This purchase $XX,XXX million work on of The shelf the loss expenditures fourth registration. employee 'XX. to operating interest $XX.X in of fourth Company in Company stock of are a consolidated the in common the approximately with plan. Jobs and benefit $X.XX Cuts XXXX also repurchased in $X.X million cash to common and Company $X.XX the a was non-cash approximately the D period net Tax were will was approximately any year-to-year. legislation million XXXX $XX new and XXXX. provisional XXXX. Company of stock approximately due approximately to the approximately a The we S-X utilize purely those current million to shares the purchased the is fourth impact payments registration $XX.X million Company for a quarter repurchased shares. in of stock in made stock employee obligations tax class approximately $XXX,XXX. $XX.X XXX,XXX of amount satisfy our in the Company

of forma Net leverage $XXX.X a net adjusted I that, was bank debt of to bank $XXX.X to approximately for of For will million covenant compared $XXX.X EBITDA million say LTM leverage was times the And leverage should net X.X with I senior times. ratio, total back hand and purposes EBITDA Alfred. X.XX was approximately and approximately. X.XX ratio million against times pro

Alfred Liggins

part and went of flow, QX very radio business now it this and cash obviously to ability year the year huge their political some tax and optimistic grow of is Thank a competitive you, our the our we've is reach's had into that about Peter. challenges, Radio stabilized. given year radio we but

about are grow and picked everybody to disappointed February really though March then suspect the have about up board this across ability steadily an to month for up we radio's month, continued We up. this Even there January, year. but was be January optimistic was

even to and was a in and QX out affected particularly particular a the radio advertiser and be there significant QX would everybody for us very which because they're Radio. they standpoint, because our and a better McDonald's, strategy stalwart that Something us large industry historically budget maybe from one like hit swift that to in for They cut in Urban that's local in which been caught I'd client, the a our clients Radio in Urban second wasn't large the strategy agencies particular, has in in Company pacing actually be note in advertiser. big hard need

in for So of, in large I category it that This last we just really out that, in like we in think fraction category Radio. McDonald's this about in had normalized we'd year for Company client particular even million you story across Radio be is of if have saying so that a normally QX, got $X to had than with an long and what QX. spent the we the a that we QX year, took continue better shares optimistic was of way winded

industry is showing. than our of current that help better are sort and the underlying casing the even think the business of I

top some handsomely we we given us there. the about losses it and point measurement we right XXXX, pressure, but smaller visitors, revenue we also XXXX, the me. unique The strategies at up would whether still in excuse So contracts. growth I that tipping programming sales under particularly a starting again in -- Again XXs. continues and to have have really of call in mitigate to still stabilize -- direct our that with acquisition call have or that got We about QX, are those think million expenses comfortable In has continuing our do EBITDA. with look help line manage our programming our as lower about audience you of that the network One's division, feeling in there such is see the are that XXish mid cost to one the we that industry even to should so is significant optimistic competitors, with game the to feel industry have there. One good McDonalds as scale we continue the I have we been our of strategies, the TV feel expenses, affiliate interactive stable acquisition is feel think cutting or team for cutting, strong cost programming but grow at been to we are challenges ratings management ability in just finished our not got TV if it's flat of in noted EBITDA earlier had

So EBITDA going positive to there. upticks we see are expect we

So said adjusted about on we we with value notes of EBITDA ability repurchases XXXX, we in de-levering think across comfortable can with face on a as focused enterprise that, we year are XXXX, and again the are ago very to down continuing from are grow see from our our bond our as XXX. you really the X.XX I

Peter Thompson

XXX. to XXX

Alfred Liggins

and we bonds, our ways, to de-lever, continue goal flow rule we I XXX, To that. out plan in use to to refinance and market wouldn't more is so many our In cash open to know free got purchases. our

using focused Even if we as going come flat to down at solutions if we can will to of And saving to around flow to if on you're have asset. that We we don't any think end, cash or start mid Xs. leverage use leverage kind effort leverage our just see keeping believe get flow if are de-lever below So sort you which de-lever. have JV that times of flat by cost cash feel XXXX cash free we any -- it's I mid-XXs any flow, even free the going of see and kind the down to to been, of continue we to disposition that. to and seven we bank whether year are EBITDA, the absent reported strategic we in

diligent. focused game like with that, that's operator and open And up it so from our plan questions I'd we lines. be the and to continue for And to

Operator

line GMP come of Our the Go Briggs ahead with Securities. [Operator first Instructions] from question will please. Ben

Ben Briggs

to radio pricing touch wanted bit. pressures little on just I a

larger You'd pressures some mentioned pricing times that competitors. previous lot in of in you've calls got a

Alfred Liggins

Yes.

Ben Briggs

impact I a just impacting get you follow-up. one how may And of guys? you the to in then to that that's have how currently wanted sense to try And after that you future? I feel

Alfred Liggins

mean report it's is in of the flow I it's a quote financial business you've business. good he Yes, mature from the business. a business, it's look, a Liberty the strong read the being you the interested iHeart radio mature news Maffei, talked CEO, a in interesting, characteristics now Media radio and cash about see and about free

Malone balance just John think a that in radio the So decent is a Liberty sheet. business, got it problem the with

business the somewhere. we've pressure been now this so some another along came billion they quite And living is got gets pricing come vertical dollars, that time, of Internet in to from add with and for there

industry smaller pressure has like going but has situation been guys, now with With radio I So of as a will compared radio lift, drastically you and we David is pricing. the Field CBS' do can't for underpriced said, get is that that's sure, still to radio CBS. got players what structure added two to traditional then are the And get have environment because that player suffered the medium need big revenues of the you this an one from they iHeart, less. the reason suffer, is we the if mantra, industry of underpriced believe to we're other big Intercom's industry And going to you've that are better medium. that it

helps that with the So assets pricing controls now hopefully he more that pressures.

but you floors Then more and they that and in act Just balance rationally be grow need are scale, could be what cash cumulus long-term much of going well. the take in industry can are as can more When take can have don't pure you they get more pressures, sheet got levered, restructured. to you as you can thoughtful cost. any to highly at changes, chances. you're out more terms view If rate restructured their iHeart how of gets to they share you afford helpful, take as gets they to

has pleasantly in out their underscores have continue the way. we starts think that had. the sort it at their resilience broadcast I again mitigates radio in ultimately surprised that particularly that interest some and interest really itself been there think who industry be game, I offer I pressure out, really the Media around smart same this and So the to commentary think the again pricing Liberty to there's And

Ben Briggs

Do you possibility? think you… is the a industry so consolidation And would if

Alfred Liggins

of things, has Cumulus and Yes the -- -- and think and they is. sheet accretive St. Once already seller Louis got seeing pick I to particular, in. get from no, think transactions, I Intercom few I transactions think there lot up of a started accretive bigger. Louis no, do acquired the the I a that know in stations is sides some be Entercom position St. M&A in In the going it are right, some are two they don't you restructured, there's are they markets to and -- larger balance I Hubbard to subscale buyer. they M&A the in

amazing I than be falling pricing then a look think market reach can falling, great, people to So, markets. create and yes, need been those water. a of and We business it. sort great to out need in those and of actually, good and has I rationalized treading market, radio radio think at bigger they're got into not either a our this ultimately been markets, portfolios so people has all it in -- stabilization, considerably Otherwise, business has it to recognize they rationalize doing they get turn it's where faster have got would get it's

Ben Briggs

the I'll this last one. make

performing you -- basically is that in that's doing, it you would. right of the where regarding Just possibility…. monetization projected that with know you asset guys MGM that investment Are guys I line

Alfred Liggins

uncertain quite have we well, as for interesting is have a I classify that now, what to certainly only what opportunities way there which us that is is Literally, of put do and good it that's in to explore year sure at environments to and that the doing -- investment to are business are investment. that to for media end three. because options So, we levers. as the monetize open right MGM And question the monetize I entire you would it's look,

away. So years that's two

do thing we they're very to resolved the And that if sure reach But from certainly on that discount. successfully not certainly to are people them them early about that value in is we that time. You make wanted a we right. just And we have to new conversation could conversation MGM at standpoint. first didn't be investment. early the this able may or discount, as not, about usually something a to contractual they interested, point structure it should with explore have The or they of related future lately we were a interested at may and interested, not monetization are may like options with impact may

the come the into sub, if bringing up Something that it and are streams is somehow company. all from other could flow on parent cash cash now we're securitize right restricted that's investors, we

And some that would to we investor I work, lump are refi, that big mean other would we think the single couldn't asset, a meaning and our get I we securitization some but could initial cash because that look make closure difficult against us flow this find stream helps one that they that sum our starting doesn't get give sense view if refi. EBITDA, the in but return would we thing money is us flow that investor larger single that comes traditional having institutional lump this stream. investor at sum would to that's will that to our for that asset, arbitrage pledging in on that cash we we're that do think the that payment consider happy that, of that with getting is enough be now out

a be in the goal. the finish at we've table happens delivering and in to reasonable are to what all to the the think at at review that to achieve get this hands I rate successful immediate is and line order immediate company past things our and on goals on proven tax

Ben Briggs

that Do you think in refi XXXX? happens

Alfred Liggins

by technically mean Yes I quarter have XXXX. in to I do, into the I first had first get it think Technically, somewhere we quarter. the done we of

orders to we debt about So of sort with coming any have don't have current. conversation

looking get time So, to we pick that our 'XX to done. right will be in spot as

Operator

of Cowen. Go We Vitanza will to ahead Lance next go line please. with

Lance Vitanza

year, quarter McDonalds sorry first loss, of million I to say was was sort was catch the last about that to clarify, you that just hear for right? the couldn't did of quite I January, or that revenues the

Alfred Liggins

for was That QX.

Lance Vitanza

may much. larger planning changes being I -- of suppose Are I you that and it's this, are clients other announced then think mentioned you we potentially your figured are they would as have but you that of at then risk? have aware should agency

Alfred Liggins

political that knows to with be radio black down -- they hit those and a single gets XXs the owner lot operators been base And I down had have all very agency, of a I the agency reverses, I different because have in they system, that happens the all the, radio long radio and new and that to local different lot -- review an knows so intricate work and changes so things, less consolidate with changes strategy is change going to and it agencies they went to in audience, digit enough forgot to audience, many coops, just oddly number committed stick agency there they're say this, a how but and so Urban but happened a new think on No that kind they black they but strategy local very committed like the it's coops very, just ultimately huge time right. spender. become dated -- this local for people the is rare core whenever of mean of but time, McDonald change, They of for how from who big a a so who the don't been and less radio. long the of committed different to consumer it's have McDonald's And handle dramatically. and

it I something you account what's if years they've the think to and in have with, have been issue it's local the this going last to way, my anomaly, told you you Radio, McDonald's entire was strong me, in career. I been that have they are XX an put in Urban because had radio, would business said

Lance Vitanza

Do you maybe revenue see I any am assumption, digital going money opportunity, presuming from for mean an recapture your into that a media I but opportunity there you to radio social is that's is wrong that in some platform? of

Alfred Liggins

I TV good TV glad McDonald's you they I at brought mean mean we mean doing were up in the digital it better digital, better I but and up, are offset radio. balance it's thing, a in doing doesn't yes, unfortunately and at One with

Lance Vitanza

of So, the mean I it's that's year that heavily month the I well, the spending mean substantial throughout was mean not it's it then assuming explain not you quarter, improvement was I first year I back improvement into last best as coming as how though lumped the would the am just Mcdonald's then?

Alfred Liggins

just happy that getting been even in still and don't trends January No, explain I a are tell was McDonald's is can't doesn't bound February laid the I across, I low am why me would but March January McDonald's And the and disproportionately of if no, and a quarter. look, month digits single mid that single all have the digits. sudden -- so… still up then mere is know why bad then January why like single up that -- no, digit high yes better, I you is.

Lance Vitanza

in to should fourth content thinking non-cash look Let EBITDA the compare I can side, cash a you if your the non-cash Or here? But of mentioned how amortization quarter much should that capitalized that back me opinion, I 'XX? here, call and had then periods QX EBITDA the whatever kind and there not So, expense 'XX versus of Peter doing doing when programming amortization basis. am we cash to back to of then add you you turn that's -- is you both you fourth spent about break I lower right? of look would us is might actually subtract we would for TV add out in what content normally more on any be be reason quarter for in there expenses

Peter Thompson

question. great a It's

I So, I approximately comps that. from cash full fourth standpoint. know for cash the the program don't we have it to speak a $X year Jody and was can amount. than that higher and quarter have million quarter the spends fourth may to the

So is 'XX that think lay your to well. that And you get there it to 'XX programming delta for question. some a we're down answer as be I normalizes going or through as

is… So cash

Jody Drewer

economies long-term even through going and fourth you companies million programming Yes, up that as some in 'XX. for we there to take because to was this with contracts but cash is fourth XX -- for we had in about two quarter to get of like scale if and 'XX look signed is at, quarter, our production in order

Lance Vitanza

did isn't that whether it cash and going it to versus it some lumpiness like us seems really you accrual look So some at help timing got really much.

Peter Thompson

$X a looking programming, how more current amount of in numbers now we right probably think throughout ‘XX how level modest and we're think we're I the on $X rate million programming year, revenues at up that course year-to-year. but down the and But higher $X flex million performed can to at now, a looking the rates little increase. and on probably and performed a as basis I think that's million a so about what we they run right dependent

Lance Vitanza

one XX two can or bond I balance repurchases. more the million if sheet, on Just of the get

first any I 'XX. think in each of the last two quarters, of half in I have done the don't recall you

about I'm Should as be back and Or the QX just seasonal pattern expect of debt first in try basically the about to they we the QX, year? in was So cash that similar was repayment of with being half as of happen was coincidental a XXXX. of seasonality 'XX than greater to so obviously amount back think that forth we coincidental, that to get sort due the that stronger half half? the versus flows?

Peter Thompson

sheet find pricing that if going so balance the of than that later. right we down now, on I would want cash enough do take got we've we think to And to. sooner notes, attractive think I more think we're the No, we those could I

Alfred Liggins

Look we that have those right. the reality is to bonds, refinance

So, in our purchasing market. the we're just open to process by refinancing start going them

I'm and right like looking at… appears it talking off-the-cuff, Before now,

Lance Vitanza

say. you what Careful

Alfred Liggins

say, opportunistically careful they were priced, when I before bonds right. were Be but we buying

XX. it And so, was it XX, was

I waiting, so thing, think and I is. them we're got to same I so now it as particularly what just committed we're right. buying did practically, to to come opposed out, mean and if think they the that's

Lance Vitanza

the interest do bond happen expense for Peter, are rate recent you today you run most given the to repurchases. where have

Peter Thompson

let It's let me, Lance, but around get... me XX

Lance Vitanza

close need but to a That's pinpoint, looking for I I enough. so. mean dump don't just,

to of expense, to know million interest XXX EBITDA, million CapEx. XXX million so I XX Okay X don't of XX cash of

we think cash as probably. that's about So flow free

is line guess limitation the the about should the language in versus thinking The Now and I cash about we in taxes, lower How be this in press some release cash XXXX promise. last cash particular? on you think my suggested and deductibility rate. statutory uncertainty question as I the taxes interest

Peter Thompson

this. into we and be specific depth to just have on Yes auditors around language, with gone our that

really I signed national think office their it's time. up not quite and just is the

in a put as We still because reviewing. precaution they're that have

to then think $XXX to to we going over way new we so through the burn brought will because we years. that acquisition interest what we we got think of we the can the those future is limitation, forward question, are faster and comfortable and interest forward, to are with your the then to going law have I unused impact answer of start NOLs still deduction this, carry million

us near kind or be on don't in the so we taxes. pay cash term, tax we So, of any it impact anticipate shouldn't paying material cash medium having

Operator

Descartes. to now line Juliano go One Torii with will of We moment please.

Juliano Torii

cost a on your think also good do also come competitors? your some with And costs cutting you maintain see think see I bit think able content? or if Do business. control that Or been of do discuss more your other this you're bonus content, could the you back than you that cutting competitors the you this on do to that you have year? you you

Alfred Liggins

question. the of part first The

Peter Thompson

part, first would year. our we the with earn to obviously deal so like bonuses I'll this Well,

that and the top call. I staff, do of the we our Alfred flows, think cash include the everybody growing at will and said by of would all

be our So reasonable provisions when we the for would need year to whatever to are adjusted we think said made. EBITDA drawing bonus Alfred include committed that

to So, we we that then we bonus and any have an by inclusive that that board can hit our is have agreed grow have approvals. budget internal with -- of then providing to we

mind answers part Then first content? would So the on I question. second the that you hope repeating of the part just the

Juliano Torii

using. been the Yes, with like competitors? that constant it that does looks cost you your had compare how yes

Peter Thompson

programming. very So, budgets our original little look, have well situation to giant don't competitors, to very them and are programming smaller big are most -- which really some competitors different in then small essentially a competitors the our have And of we then media ours our we competitors compared companies. split

they're is our owned competitors, by direct Viacom. BET So

and times, then So ours money by what spending at network. Discovery on is, more is network probably VHX by programming owned budget they're already Viacom. the open owned own actually their content also but six BET,

So are guys and I at more competitors on four content, three are those spending think largely but and levered money times. our

We have a size. got a different got We different profile.

our be So strategy to in successful. different order to us for has be

of luxury they crapshoot to advertisers, a value the by gigantic big really get so lot of ended the have money up the I to in create and always could to I growth. we we we old be that at strategy to the we to don't programming down. number there our successfully, type lower and to the about was of have And result. so it's creative shots cost to that allows bunch mean the XXX WG got and hit. budget network budget a we gives When management try because wanted volume, that XXXX differentiate taking there to we anyway, we of that us and content heard increased in the times way, of original into to America I get own Tribune it be up the a content what that to to continue is exactly zero. and manage our -- a was which our for thought cost cost content higher but know was. content it strategy, we for that don’t lever cash XXXX like, and move down to flow EBITDA lowering commit So was a high We’ve

strategy part and the the switched they pretty lot cost big rebound. lower back of good to high important a my volume, in WG is the Now, and understanding numbers of that

platforms economically is So us going ecosystem. audit, a And unique well, have. look do compete our this continue but spend for reasonable grind. and got then we in once slow after faster ramp us and we leverage the offering to five our different and money we and always that got we But a our help from competed we’ve place we has a there we in bigger more and world larger have own get we challenging guys might is then they programming same down to this will efficient. content for content and our more investment world bigger way and strategy a so are ago. level, that that the can years our come always targeting multimedia as partnership really guys that audience, still that yes against up and on down budget steady is We rethink against Leverage it your content to than it's and

point goals in at point at to -- And this we were has fit what time. strategy our has where fit to strategy Forgot [ph], leverage our we Zina but at are operation our continue our on focused that. be to this time

Operator

go Williams mute please now feature. to please. Go will ahead of your We Roland check Mr. line Private a Williams Investor.

your is hear to again Williams, you. able this Mr. on not able we’re Once line hear you to line. We’re not

Unidentified Analyst

in heard cutting, that I've the made what this. Company's you see is question With do some plan first the that address vulnerability? you consolidation. to And agency cost My said, do you all changes biggest how vulnerability?

Peter Thompson

biggest that sphere but think operate out gave. in in we every that more do, just we right. two do, commentary that things, and efficient. figure I leverage vulnerability we that become Are that's And everything I size, is size, how Our the to we got

with getting I to to analysis asset. need getting not look wedded got or I So our be same business out, to to when in and we we've There our could talked cable that we have we radio in stuff. bigger We people some We bigger that the competitors. at at need have and bought look profitable more digital one of and about to that business. do do got that We get doing could wedded need or we and markets people a more success. to efficient in sort business to our of said think different particular look JVs be in at get either

opportunity amount find that most right for of we the the our So shareholders. makes got sense to

and this So, every at because them to on we sure is -- and there what the to table successful we the are, are things just know at think to our pretty last this -- that's that of I on appropriate of not call about but the extent there're time, this be the is much exploring time. job goal, to what for all few ultimate sense one it's reach makes we so that talk options now, us be

Unidentified Analyst

is year is. second year? to have The learned the this that question inform What last Company going you

Peter Thompson

standpoint place it's in in so think one what is, people's that think the stuff radio, the from pretty I radio needs radio out changing the market are radio the that's media -- is technology side. thing less it just just is that we I music number that the is simple, doesn't content, so which delivering largely is to on structural play largely other

in conversations you got I’m can scale. we’re media television folks content platforms, scale we to to believe partnerships in we different if it things partnering more I today, but more figure platforms, figure can to of you amortize be is about and to way that century, had programming, certainly more needs situation. having leverage invest minds programming it sell that that another you that able and are Then of another suggesting decision and On Rupert multiple off platform side, part order networks. you do out arguably with a of and this the need and the the two his another are. and going who to better be made would over to in asset one not invest we invest the more Murdoch We in the greatest larger gain out to from a network

efficient at priority. do with kind buying a of other partnering looked and Anything we networks is about conversations you having other launching networks. We’re and other more that get networks, can to

to this And programming and more is a for figure more and think monetized create that could landscape to that over real way over platforms. last so, need year what I amortized we be changing I've out learned here stay, to and

Unidentified Analyst

app, said of programming, the that And about what with or possibility is something Netflix? core launching cut like Hulu a subscription of increasing, the TV monetization the One based

Alfred Liggins

kind what a have that, about. First don’t of deal of all Fox mean kind you of to Disney got programming do the programming that’s we to assets. lot is of I have those

solution. first I for the term a would step an think that be immediate project, not long us

step content having can for out today OTT as to opposed monetize of invest platforms more to losses to immediately bunch another monetize how first that significant period run over the it and think a find is I we business a us time. to for in platforms figure out to to those of build

some TV for to app is continue us believe answer forward going I largely is So I to solutions XXX an also more genre whatever bought now. Television among. bullish we I not their still in subscription for believe bundles, media to service going the want is skinnier in everybody going pay but for right America need bundles don’t of be think and that is XXX favorite

Unidentified Analyst

guys, right? partnership cost, to still that’s a the talent how you Well thank you. question. since is need want of you you last like do This content are but while reducing I how some standpoint, some from ask you top had I you, know kind my cost?

Alfred Liggins

time that more one Repeat please. question

Unidentified Analyst

From still reducing a do top while how cost? standpoint, content the you talent attract

Alfred Liggins

out we’re the Hart great go classify we’re budgets did, and ago. to get Smiley. who we're don’t like Chadwick mean and we’ve and people and good a game DL have Hughley and talented ad Kevin got some we years the like I do not Rickey That’s show top in, But we not work talent if talent us Washington -- with BET Kevin you that as for -- few Boseman Hart, a Denzel

get a better talent When we by we the a than we’re So the the point that, going we is have not way can't we'll don't to conversations, had the lot is ago. we years seven to then plan those but play network where arena. on that talent and

as "A place. improve but You in And as or know if to also that with his said Gotta can't one you the continues Man's movies, to reality, think the are time, in particular in know Clint deal its It years appropriate Know react Dirty Eastwood five of ago. market actually Limitations." to don't Harry what has starring limitations His I you moment business

Operator

Noble Instructions] Go we [Operator of Meanwhile, Financial. ahead. with will to Kupinski go Michael line

Michael Kupinski

data And that the I know a buys? are radio, driven of looking has area. you it's that that advertising? earlier question kind question. in least what the analytics? I one can McDonald's shift other been mentioned invest that goes some embrace something seeing there broadcaster movements know shifts at can the data and the a quarter is that in to of problem Is also that think extent radio, counteract of we to the can TV some specifically to larger Do do the what do so to you back that driven broadcasters and not they more are other in media and towards more can

Alfred Liggins

radio Look attach business, smaller to the so to in to ultimately industry data we going having -- solution are industry and player arises. up ourselves are we whatever wide end larger

iHeart's he data end is what of own platform. radio create do, data the their to know at the Just for their not solution is David that's but iHeart has One believes to data MS platform. and got I going very at own NextRadio going don’t it got everybody a Urban not is good the because that industry, Field day, million

-- are we audio We -- big don't because streaming. have in we also not

a data that have then one as stuff part that individual from the different sign players then what's relates who we’ll of and platforms you be data be there's own choose the I to think to figure a think up. and all that. We be to see three going standpoint story two big needs their to going to of big we the And that's three knows there but maybe big think players smaller data radio players, like I platform, independent which got have industry it now of are our and evolve should right. those lot to companies out probably of digital the I platform ultimately us want Again

Michael Kupinski

And Alfred, then with or in now RLJ? instance. recent just KATE going back their has OTT the buying the the to African-American some previous E/W. service Scripps, RLJ developments moving into with AMC with or space in been potentially industry, urban in there possibly for like the question the any subscription even of interest Is OTT other partnering space, companies

Alfred Liggins

now. the AMC like they bought that NOTT the is a it industry look, is that’s want Yes channel know urban could Christie $XX,XXX conversely, RLJ we subscribers. about services with the folks a reason about talk service is was from in from like that there Library to RLJ, XXX,XXX got got Hammond like I which part that's believe Agatha I've which Nirvana, don’t RLJ and out got subscribers the I conversations it mass the but and for kind -- but it million data largely British not But movie of call critical Acorn, I of my mean seen acquisition AMC really understanding subs, the I back

it our today. our clear what and some be and some We not movie folks like XX a largely that may from first. priorities urban talk partnering. people, partnering the ground, we my and that stake Now, channels post the resolved I hope that. what it's in I message with But path got I for business a could talked about and down taking about about it And getting hope focused XX. about to have other they future been priorities are

I’ve then look can ground I and the where thinks more got in stakes put at that, like start So we immediate goal.

we if future right short sometimes needs, near-term I to term that yes get short there a for second think do long-term the the don’t but of needs to sacrificing opportunity you impact. any in game. you care don’t do, term an have So And this the play

Michael Kupinski

just into that prohibit operators business? TV question with with agreements from getting services doesn’t and a you subscription quick OTT the Exactly cable the the One

Alfred Liggins

Not all. at

Michael Kupinski

Alright the thanks for question.

Alfred Liggins

We any Operator, it is XX take more. o'clock. one more Are there will questions?

Operator

We have questions this at in queue further no time.

Alfred Liggins

as Thank you. usual we’re Thank right, folks offline. you All great. available

Operator

Teleconference for will that gentlemen, your call participation and Service. Executive you AT&T Thank your for conference today. and ladies conclude for And using

You disconnect. now may

Urban One (UONE) 6 Mar 182017 Q4 Earnings call transcript