Radio One Revenues Rise, Loss Widens For Third Quarter As Radio Lags
November 5, 2015 at 4:10 AM (PT)
RADIO ONE third quarter 2015 net revenue rose 3.3% to $115.9 million, attributed to ad sales increases and affiliate revenue for TV ONE. Station operating income increased 9.2% to $42.2 million, but overall operating income fell from $19.6 million to $7.1 million, and the company's net loss widened from $13.2 million to $18.1 million (28 to 38 cents/share).
Radio advertising fell slightly from $60.2 million to $55.6 million, with growth in CLEVELAND, DALLAS, PHILADELPHIA, and ST. LOUIS offset by declines in ATLANTA, BALTIMORE, DETROIT, COLUMBUS, HOUSTON, INDIANAPOLIS, and WASHINGTON). REACH MEDIA also slipped 1%, while Internet revenue fell 5.5%.
CEO/Pres. ALFRED C. LIGGINS III said, "Continuing strong performances by TV ONE and REACH MEDIA more than offset the revenue declines from our Radio business. Radio continues to be a challenging business, with the markets in which we operate down 2.2% for the quarter, compared to our –6.6%. We are seeing some signs of stabilization in our WASHINGTON DC and HOUSTON clusters, as well as strong performances from DALLAS, PHILADELPHIA and ST. LOUIS. During the quarter we experienced double-digit ratings growth in 11 of our 15 markets, and our four largest markets showed ratings growth of 15% on average from JULY to SEPTEMBER. This positive ratings momentum should lead to improved monetization in 2016. Fourth quarter core radio advertising revenues, excluding political advertising, are currently pacing (–8.3%) YTY. We remain focused on correcting our underperforming radio clusters, while delivering increased cash-flow through overall cost containment, and revenue growth in the cable television business. I am excited that DAVID KANTOR has accepted the role as CEO of our radio platform, including our local stations, network and syndication business. Bringing together all of our radio assets under one leadership structure will enhance our ability to compete and transform our business for the future."