Posted: November 6, 2008 at 12:59 pm
The Lanham-based radio broadcasting company reported a loss of $266.1 million, or a $2.81 per basic share, compared to a net income of $4.7 million, or 5 cents per basic share, for the same period last year.
The company recorded a massive non-cash impairment charge against the company’s Federal Communication Commission licenses of $337.9 million — which lead to a net operating loss of about $315.6 million.
Net revenue at Radio One (NASDAQ: ROIAK, ROIA) fell 2 percent to $86.2 million for the third quarter. Station operating income totaled $34.7 million, a 17 percent decrease from the same period in 2007.
“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,” said Alfred Liggins, head of Radio One. “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.”
Radio One (NASDAQ: ROIA) owns and operates 53 radio stations in 16 markets, including four Baltimore stations: WERQ-FM 92Q Jams, WOLB-AM 1010, WWIN-AM 1440 and WWIN-FM Magic 95.9. Its stations primarily target African-American and urban listeners. The company successfully integrated the online social networking company, Community Connect Inc. , giving the company access to eight million monthly unique visitors to its online properties. Radio One also owns Magazine One Inc., and has interests in TV One LLC, and Reach Media Inc.