Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter
ended September 30, 2008. Net revenue was approximately $86.2 million,
a decrease of 2% from the same period in 2007. Station operating
income(1) was approximately $34.7 million, a decrease of 17% from the
same period in 2007. The Company recorded a non-cash impairment charge
against the Company’s FCC licenses of approximately $337.9 million
which lead to a net operating loss of approximately $315.6 million.
Net loss was approximately $266.1 million or a loss of $2.81 per basic
share, a decrease from the reported net income of approximately $4.7
million or $.05 per basic share for the same period in 2007.
Alfred C. Liggins, III, Radio One’s CEO and President stated,
“Clearly all advertising based companies, including radio are
experiencing extremely challenging times given the slowdown in
consumer spending, and I expect this to continue through all of 2009.
Our focus remains on increasing our radio market share, cutting costs
and diversifying into TV and online revenues. We continue to make
progress on each of these goals, by outperforming our radio markets by
170 bps year to date, restructuring our radio workforce, and
generating solid revenue growth in TV One and Interactive One.
National revenues continue to be a drag on our radio business
(down 17% YTY), mitigated somewhat by increased political revenues (up
319% YTY). The automotive category continues to show sharp declines,
down 37% YTY, which accounts for over 10% of our business. After
adjusting for asset impairments and other one-time items, we reduced
our operating expenses by 3% for the quarter compared to previous
The integration of Community Connect Inc. has been achieved as
planned, and we now have in excess of eight million monthly unique
visitors to our online properties, viewing over 500 million pages each
month. Our ability to provide advertising clients with access to 82%
of all African Americans across a platform of radio, TV, online and
print gives us a unique niche in the market, and puts us in a strong
position for the long term.”