Radio One's Q1 "Challenging," Net Income Off 63%
May 4, 2006 at 1:14 PM (PT)
RADIO ONE first quarter 2006 revenues rose 7% to $82.1 million but net income dropped 63% to $2.6 million (3 cents/diluted share). The revenue increase was credited to consolidation of a full quarter for REACH MEDIA as opposed to the one month it was represented in the results for first quarter 2005; excluding REACH MEDIA, net broadcast revenue actually fell 4%, blamed on overall industry revenue declines offset partially by growth in HOUSTON, RICHMOND, PHILADELPHIA, and ST. LOUIS plus revenues from the Internet and the company's new talk radio network.
CEO/President ALFRED C. LIGGINS III said in a press release that "we are pleased to report a quarter that, while challenging, was actually better than the guidance we gave back in FEBRUARY of this year. We are mindful of the fact that our exceptional performance in Q1 of 2005, when we outgrew our markets by 500 basis points, would make this year's first quarter that much more difficult. With that said, we continue to focus on maximizing our radio station portfolio and are finding opportunities for growth in places like PHILADELPHIA and ST. LOUIS and improvement in places such as LOS ANGELES and CINCINNATI. Thus, we expect to continue to invest time and effort into our core radio business to maintain our competitive advantage and feel optimistic that in the second half of 2006 we will begin to see the fruits of our labor."