Another Drop For Radio One In Q3
November 6, 2008 at 5:24 AM (PT)
RADIO ONE third-quarter net revenue fell 2% year-to-year to $86.2 million, with station operating income off 17% to $34.7 million. The company took a non-cash impairment charge against the Company's FCC licenses of about $337.9 million, leading to a net operating loss of $315.6 million. RADIO ONE recorded a net loss of $266.1 million ($2.81 per basic share), down from last year's quarterly net income of $4.7 million (5 cents per basic share).
CEO/Pres. ALFRED C. LIGGINS, III said, "Clearly all advertising-based companies, including radio are experiencing extremely challenging times given the slowdown in consumer spending, and I expect this to continue through all of 2009. Our focus remains on increasing our radio market share, cutting costs and diversifying into TV and online revenues. We continue to make progress on each of these goals, by outperforming our radio markets by 170 bps year to date, restructuring our radio workforce and generating solid revenue growth in TV ONE and INTERACTIVE ONE.
"National revenues continue to be a drag on our radio business (down 17% YTY), mitigated somewhat by increased political revenues (up 319% YTY). The automotive category continues to show sharp declines, down 37% YTY, which accounts for over 10% of our business. After adjusting for asset impairments and other one-time items, we reduced our operating expenses by 3% for the quarter compared to previous third quarter.
"The integration of COMMUNITY CONNECT INC. has been achieved as planned, and we now have in excess of eight million monthly unique visitors to our online properties, viewing over 500 million pages each month. Our ability to provide advertising clients with access to 82% of all African Americans across a platform of radio, TV, online and print gives us a unique niche in the market, and puts us in a strong position for the long term."