Net revenue was $118.4 million, up 7.7% from Q3 2012. The comp was $109.9 million in Q3 2012. Station operating income was $44.8 million, an increase of 9.7%. Radio One reported operating income of $21.8 million in the quarter, compared to $21.5 million in Q3 last year. Net loss was $13.2 million or $0.28 per share compared to a net loss of $13.1 million or $0.26 per share, for the same period in 2012.
Net revenue from the radio business, including Reach Media, increased 3.4% for the quarter. The Cable Television (TV One) segment saw $37.8 million of revenue, vs. $33.2 million in last year’s Q3. Net revenues for Radio One’s internet business increased 37.6% “due to growth in advertising and studio services, where Interactive One provides services to other publishers.”
Operating expenses increased to $83.3 million for the quarter, from $78.7 million, an increase of 5.8%. The increase was blamed on an increase in programming and technical expenses related to higher content amortization as TV One continues to expand its programming.
Said Alfred C. Liggins, III, Radio One CEO: “Overall I am pleased with our 12.5% increase in adjusted EBITDA. Our radio business, including Reach Media, grew revenues by 3.4% year-to-year despite the toughening political comparatives. Propelled by strong summer ratings, TV One posted revenue and adjusted EBITDA growth of 13.7% and 37.2% respectively, and our internet division showed solid progress.”
Excluding political, Liggins said Q4 radio revenues are currently pacing up mid-single digits. “Despite the $6.1 million of cyclical political revenue that we booked in Q4 2012, we expect Q4 radio revenues to finish approximately flat, which will be quite an achievement given that 2012 was a record year for our political revenues. As a result of our EBITDA growth, we have steadily been improving our leverage profile, and for the first time since Q1 2009, our total leverage ratio as measured by our credit agreement has dropped below 7.0x; our focus remains to continue this positive trend.”
