Radio One Q1 Revs Drop 16%
May 12, 2009 at 5:03 AM (PT)
RADIO ONE has reported its results for the quarter ended MARCH 31st, 2009.
Net revenue was approximately $60.7 million, a decrease of 16% from the same period in 2008. Station operating income was approximately $16.5 million, a decrease of 43% from the same period in 2008. The Company recorded a non-cash impairment charge against its FCC licenses of approximately $49.0 million, which lead to a net operating loss of approximately $43.3 million. Net loss was approximately $59.4 million or a loss of $0.84 per basic share, an increase in the amount of the reported net loss of approximately $18.9 million or $0.19 per basic share for the same period in 2008.
Pres./CEO ALFRED C. LIGGINS III stated, "On top of Q1 seasonally being the smallest of the year, the continuing poor economic climate continued to weaken the demand for advertising in general. Our radio revenue performance mirrored that of the markets we operate in, down 24%. Our radio automobile business dropped by 57% compared to last year, and, we experienced declines in both inventory pricing and sellout rates. We continued with our cost cutting initiatives, and leveraged new and alternative revenue sources fueled by the radio industry’s growth in digital and online dollars. Though business continues to book extremely late, pacings indicate Q2 revenues will experience declines similar to those in Q1. We will proactively continue to focus on radio share growth, internet sales, further cost cuts and our balance sheet."