Radio One Revenue Up, but Net Loss Widens

Radio One, a radio group with more than 50 radio stations in 16 urban markets, reported that net revenue in the second quarter was approximately $83.4 million, an increase of 1 percent from the same period in 2007.

Station operating income was approximately $35.2 million, a decrease of 11 percent from the same period in 2007. Operating income of approximately $11.8 million was adversely impacted by one-time charges, resulting in a decrease of 44 percent from the operating income in the same period in 2007. Net loss was approximately $11.7 million, an increase from the reported net loss of $5.1 million in the same period in 2007.

The quarter was a busy one for the company, which purchased online social networking company Community Connect Inc. for $38 million in cash during the quarter. It also closed on the purchase of D.C. radio station WPRS-FM for $38 million, and sold assets of Miami radio station WMCU-AM to Salem Communications Holding Corp. for $12.3 million and L.A. radio station KRBV-FM to Bonneville International for $137.5 million.

Those sales allowed the company to pay down debt, said CEO Alfred Liggins.

Given the backdrop of the weak economy and declining revenues in radio, the company once again focused on cutting back on operating expenses and improving its balance sheet, Liggins said. The company’s outlook for 2008 and into 2009 remains cautious, he said, adding, “I am excited about our internet growth opportunities, and I am confident our management team will continue to outperform the market.”

Cox last week announced that revenues in the second quarter slipped 8.3 percent, to $108 million. That included a 6.1 percent drop in local revenues and a hefty 17.5 percent tumble in national revenues. Station operating income slipped 13.6 percent, to $41.3 million.