Radio One Reports Revenues
WASHINGTON -- May 12, 2009: Radio One reports that its net revenues fell by 16 percent in the first quarter of 2009, to $60.7 million from $72.5 million in Q1 2008. Station operating income was $16.5 million, down 42.9 percent from $28.9 million, with adjusted EBITDA at $11.4 million, down 49.6 percent from $22.6 million.
The radio division's net revenue was $47.3 million in the quarter, down 24 percent from $62.2 million. Reach Media brought in $10.5 million, nearly flat with a year ago, while Internet and publishing revenue was $3.8 million, up from $850,000.
Radio One took a noncash impairment charge of about $49 million in Q1, leading to a net operating loss of about $43.3 million. The company's net loss in
the quarter was $59.4 million (84 cents per share), compared to a net loss of $18.9 million (19 cents) a year ago."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," said Radio One President/CEO Alfred Liggins. "Our radio revenue performance mirrored that of the markets we operate in, down 24 percent. Our radio automobile business dropped by 57 percent compared to last year, and we experienced declines in both inventory pricing and sellout rates."
Liggins continued, "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."
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