Radio One loses $11.7M…
August 17, 2008 by Staff
Filed under Money/Business, News
(Akiit.com) Radio One Inc.’s bottom line took another hit in the second quarter because of declining sales.
The Lanham-based broadcasting company, which owns Baltimore’s top-rated 92Q urban radio station, reported a net loss of $11.7 million, or 12 cents per share, for the quarter, compared to a net loss of $5.1 million, or 5 cents per share, in the same period last year.
Revenue was $83.4 million, a 1 percent increase from the same period in 2007.
During the quarter, the company scooped up online social networking company Community Connect Inc. for $38 million in cash. The company generated more than $3.7 million in revenue from the acquisition, in addition to revenue from other internally launched sites.
In June, the company closed on the purchase of D.C. radio station WPRS-FM for $38 million.
In April, the company sold assets of Miami radio station WMCU-AM to Salem Communications Holding Corp. for $12.3 million, and a month later, the company traded Los Angeles radio station KRBV-FM to Bonneville International Corp. for $137.5 million.
“Proceeds from our Los Angeles and Miami asset sales positioned us to accomplish net debt pay downs and bond retirements of $77 million, as well as the buy-back of over 2 million shares,” said Alfred Liggins, Radio One’s chief executive and president, in a statement.
He said the company’s outlook for the rest of the year and into 2009 remains “cautious.”
“Given the backdrop of the weak economy and declining revenues in radio, we once again focused on cutting back on operating expenses and improving our balance sheet,” said Liggins.
Radio One (NASDAQ: ROIA) owns more than 50 radio stations in 16 urban markets, as well as Silver Spring-based cable network TV One.