Radio One Loses $11.7 Million
August 5, 2008 at 9:10 AM (PT)
RADIO ONE INC.’s bottom line took another hit in the second quarter because of declining sales. BIZJOURNALS.COM reports the LATHAM-based company reported a net loss of $11.7 million, or 12 cents per share, for the quarter, compared to a net loss of $5.1 million, or 5 cents per share, in the same period last year.
Revenue was $83.4 million, a 1% increase from the same period in 2007.
During the quarter, the company scooped up online social networking company COMMUNITY CONNECT INC. for $38 million in cash. The company generated more than $3.7 million in revenue from the acquisition, in addition to revenue from other internally launched sites.
In JUNE, the company closed on the purchase of D.C. radio station WPRS for $38 million.
In APRIL, the company sold assets of MIAMI radio station WMCU-A to SALEM COMMUNICATIONS HOLDING CORP. for $12.3 million, and a month later, the company traded LOS ANGELES radio station KRBV to BONNEVILLE INTERNATIONAL CORP. for $137.5 million.
"Proceeds from our LOS ANGELES and MIAMI asset sales positioned us to accomplish net debt pay downs and bond retirements of $77 million, as well as the buy-back of over 2 million shares," said Pres./CEO ALFRED LIGGINS. He said the company’s outlook for the rest of the year and into 2009 remains "cautious. Given the backdrop of the weak economy and declining revenues in radio, we once again focused on cutting back on operating expenses and improving our balance sheet."