Radio One Q4 Revenues Fall
February 19, 2009 at 5:06 AM (PT)
RADIO ONE fourth-quarter net revenue fell 0.6% to $74.3 million, with station operating income up 6.6% to $31.1 million A non-cash impairment charge against the company's FCC licenses, goodwill and other intangible assets of about $85.3 million led to a net operating loss of $64.2 million. Net loss narrowed from $388.1 million to $7.6 million ($3.93 to 9 cents/basic share).
Net revenue was boosted by $3.9 million attributable to the acquisition in 2008 of COMMUNITY CONNECT INC. Excluding that revenue, net revenue declined 5.8%. Radio revenues fell 8.8%, with the worst declines in ATLANTA and WASHINGTON and lesser declines in CLEVELAND, DALLAS, HOUSTON, and RALEIGH-DURHAM, offset in part by net revenue growth in INDIANAPOLIS and PHILADELPHIA as well as from new syndicated programs and internet revenue from radio station websites, additional revenue from new websites recently launched by its internet segment, and increased revenue from GIANT MAGAZINE.
CEO/President ALFRED C. KIGGINS III said, "The market for radio advertising continues to deteriorate sharply. While we outperformed our markets by 540 bps, our core radio revenues were down by 7.1% in the fourth quarter, despite a strong showing from political advertising. In this difficult environment, we continued to focus on cost cutting and de-leveraging the balance sheet. Our fourth-quarter core radio EBITDA was up by 1.3%, and our consolidated EBITDA increased by 19.8% to approximately $26.5 million, driven mainly by savings in corporate expenses and reduced losses in our internet division. We finished the year with total debt of approximately $675.2 million, down from approximately $815.5 million a year ago ... Business conditions in the first quarter of 2009 are worse than we previously anticipated, with radio pacings down approximately 30% year-to-year. Our focus for 2009 is to improve our market share, save costs where possible and continue to de-lever the Company."