Radio One, Inc. reported its results for the quarter ended June 30, 2015 and I guess the sky isn’t falling after all but there is some concern. With the recent Radio One layoffs in the ATL, Radio One is definitely is under reconstruction on the radio side of things. Radio advertising was down in comparison to last year’s second quarter but TV One advertising was up.
Net revenue was approximately $119.8 million, an increase of 10.5% from the same period in 2014, reflecting greater advertising demand and an increase in affiliate revenue at our cable television segment. Also contributing to the increase was a timing difference of Reach Media’s annual cruise event and a major promotional event that occurred in one of our radio markets. Station operating income was approximately $46.9 million, an increase of 14.3% from the same period in 2014. The Company reported operating income of approximately $24.8 million for the three months ended June 30, 2015, compared to operating income of $22.4 million for the same period in 2014. Net loss was approximately $13.0 million or $0.27 per share compared to $10.8 million or $0.23 per share, for the same period in 2014.
Alfred C. Liggins, III, Radio One’s CEO and President stated, “Our 11.7% increase in adjusted EBITDA for the quarter demonstrated a strong performance by the consolidated platform on the back of excellent results from TV One, which performed better than our expectations. Fueled by primetime ratings growth of 31%, our TV advertising was up 13.7% for the quarter, and our affiliate revenues were +27%, driven by strong carriage agreement renewal economics. TV One recently signed an 11-year renewal of our carriage agreement with AT&T, which I believe will deliver great value for our network in the future; 90% of TV One’s subscriber base is now renewed under long-term carriage agreements, assuming the proposed AT&T/DTV and Charter/TWC transactions close as anticipated.
Our core radio advertising business was soft for the quarter, although in line with our expectations, and partially offset by the strong performance of our network and syndication business, Reach Media. On a combined basis, radio plus Reach Media revenues were +8.6% vs Q2 2014, or -3.2% after adjusting for the timing of major events. Third quarter core radio advertising revenue is currently pacing down mid-single digits, but we expect this decline to be more than offset by the continued strong performance of TV One, and we are working diligently to turn around radio performance in our key markets.”