Political Advertising Boosts Radio One’s Fourth Quarter Revenue

 

WASHINGTON – SEPTEMBER 25: Radio One President and CEO Alfred Liggins III testifies before the House Subcommittee on Commerce, Trade, and Consumer Protection on Capitol Hill September 25, 2007 in Washington, DC. The subcommittee heard from testimony from mass media and recording company executives, hip hop artists and educators on the topic “From Imus to Industry: The Business of Stereotypes and Degrading Images.” (Photo by Chip Somodevilla/Getty Images)

Radio One, Inc. (NASDAQ: ROIAK and ROIA) reported its results for the quarter ended December 31, 2016.  Net revenue was approximately $113.6 million, an increase of 3.8% from the same period in 2015. Broadcast and internet operating income1 was approximately $43.1 million, an increase of 5.9% from the same period in 2015. The Company reported operating income of approximately $17.1 million for the three months ended December 31, 2016, compared to an operating loss of $11.3 million for the same period in 2015. Net loss was approximately $3.4 million or $0.07per share (basic) compared to approximately $24.3 million or $0.50 per share (basic) for the same period in 2015.  

Alfred C. Liggins, III, Radio One’s CEO and President stated, “Political advertising helped our radio broadcasting segment achieve both revenue and Adjusted EBITDA growth compared to the fourth quarter of 2015. Together with a nice rebound in TV advertising revenue, which was up 18%, this helped drive our 6% growth in consolidated Adjusted EBITDA. During the fourth quarter we booked our first income from MGM National Harbor, which had a strong opening in December. Overall I was pleased with our performance for the year, which was towards the upper end of EBITDA guidance. First quarter radio revenues have been understandably soft, given the political comps from 2016, and we are currently pacing down approximately 5%. While we expect both Radio and Reach Media to struggle against tough comps in the first quarter, our TV business and MGM investment should offset these declines, and we will be able to grow our Adjusted EBITDA again in 2017. TV One’s ratings are rebounding from last year’s loss of Martin, and for fourth quarter total day households were up 2% and Persons 25-54 were up 3% compared to Q4 2015. The positive ratings momentum is continuing into the first quarter of 2017, where we are up 7% and 5% in total day households and Persons 25-54, respectively.”

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