Radio One Third-Quarter Net Revenues Down 4.3%, Rebranding As 'Urban One' In 2017
November 3, 2016 at 3:59 AM (PT)
RADIO ONE has reported its financial results for the quarter ended SEPTEMBER 30th. Net revenue was approximately $110.9 million, a decrease of 4.3% from the same period in 2015. Broadcast and Internet operating income was approximately $43.0 million, an increase of 2.9% from the same period in 2015. The Company reported operating income of approximately $24.5 million for the three months ended SEPTEMBER 30th, compared to operating income of $7.1 million for the same period in 2015. Net loss was $423,000 or $0.01 per share (basic) compared to $18.1 million or $0.38 per share (basic) for the same period in 2015.
CEO/Pres. ALFRED C. LIGGINS III stated, "Despite softer than anticipated third-quarter revenues, our continuing cost control measures helped to deliver positive Adjusted EBITDA for the quarter, and we re-affirm our guidance for Adjusted EBITDA in the range $133-$137 million for FY 2016. During the third quarter we signed a letter of intent for the sale of our FM towers, and we anticipate closing that transaction in the fourth quarter.
Based on MILLER KAPLAN, our radio clusters were down 6.4%, compared to the markets -3%. Total spot revenue for our radio clusters in the third quarter was -4.3% compared to prior year, a slight underperformance versus our markets, which were down 3.2%. The anticipated lift from political advertising revenue did not materialize in Q3, although we have subsequently seen a significant increase in political revenue as election day approaches. Our fourth quarter radio pacings are currently up approximately 3.6%. We have continued to eliminate unprofitable NTR events, which has helped mitigate the impact of lower radio revenues on the bottom line, and recently made a significant new hire for our local digital business which I believe will help us to grow that revenue stream over time. MARK CHARNOCK, formerly SVP/Sales at MONSTER, has been recruited as Chief Digital Revenue Officer for the radio division and REACH MEDIA."
LIGGINS added, "In order to better reflect the diversified media platform that we have built, effective JANUARY 2017, we will be renaming the company URBAN ONE, INC. Each entity will retain their current brands and names, so the radio stations will continue to roll-up under the RADIO ONE brand, and the same applies to TV ONE, INTERACTIVE ONE and REACH MEDIA."