Event Timing Drives Radio One Revenues In Second Quarter, Radio Falls
August 6, 2015 at 4:15 AM (PT)
RADIO ONE, INC. second quarter net revenue rose 10.5% year-to-year to $119.8 million, which the company credited to "greater advertising demand and an increase in affiliate revenue at our cable television segment," plus the timing that put REACH MEDIA's annual TOM JOYNER FANTASTIC VOYAGE cruise event and another major promotional event into second quarter this year. Radio advertising fell 6.2% to $56.1 million. Net loss widened from $10.8 million to $13 million (23 to 27 cents/share).
The company said revenue growth was driven by DALLAS, PHILADELPHIA, RALEIGH, and ST. LOUIS, offset by declines in ATLANTA, BALTIMORE, HOUSTON, and WASHINGTON. Overall radio revenues fell 4.5%.
CEO/Pres. ALFRED C. LIGGINS, III said, "Our 11.7% increase in adjusted EBITDA for the quarter demonstrated a strong performance by the consolidated platform on the back of excellent results from TV ONE, which performed better than our expectations. Fueled by primetime ratings growth of 31%, our TV advertising was up 13.7% for the quarter, and our affiliate revenues were +27%, driven by strong carriage agreement renewal economics. TV One recently signed an 11-year renewal of our carriage agreement with AT&T, which I believe will deliver great value for our network in the future; 90% of TV ONE's subscriber base is now renewed under long-term carriage agreements, assuming the proposed AT&T/DTV and CHARTER/TWC transactions close as anticipated.
"Our core radio advertising business was soft for the quarter, although in line with our expectations, and partially offset by the strong performance of our network and syndication business, REACH MEDIA. On a combined basis, radio plus REACH MEDIA revenues were +8.6% vs Q2 2014, or -3.2% after adjusting for the timing of major events. Third quarter core radio advertising revenue is currently pacing down mid-single digits, but we expect this decline to be more than offset by the continued strong performance of TV One, and we are working diligently to turn around radio performance in our key markets."