Included in the Q1 report of part-owner Radio One was word that revenues were up double digits for TV One and that EBITDA soared. TV One is a cable network focused on the African American community.
TV One had Q1 net revenues of $30.8 million, up 19.7% from a year earlier. EBITDA jumped 83.7% to $7.6 million.
Radio One recently increased its ownership stake to a majority of TV One. The cable operation’s financial results will be consolidated with Radio One for Q2 and beyond.
Here’s a recap of the recent ownership changes. On April 25, 2011, TV One closed on the redemption of a 12.4% ownership interest held by DirecTV using funds from the private debt offering of $119 million managed by Canyon Capital Advisors LLC and the capital commitment funding completed on April 19, 2011 with the remaining members of TV One. This redemption was in addition to the redemption of 15.4% of its outstanding membership interests from certain financial investors and 2.0% of its outstanding membership interests held by TV One management (representing approximately 50% of interests held by management) completed on February 25, 2011.
Radio One’s ownership interest in TV One is now approximately 50.9%, giving Radio One a majority interest in TV One. Radio One expects to account for TV One on a consolidated basis beginning in the second quarter of 2011 “after an amendment to the TV One operating agreement was executed with the remaining members of TV One concerning certain governance issues separate and apart from the redemption transaction increasing Radio One’s interest in TV One.”