Urban specialist Radio One posted a 1% gain in net revenue to $83.4M during the second quarter of 2008, but had to use red ink for a couple of other items. Station income was down 11% to about $35.2 million, and operating income at about $11.8M, was down 44% due to adverse one-time charges. Radio One execs were pleased with there performance in the local advertising arena, blaming weak national results and a decline in a core category – entertainment – for its Q2 troubles. Political is helping to offset this somewhat, and the company is looking forward to at least a break-even year with 2006. CEO Alfred Liggins noted that the presence of Barack Obama (D-IL) in the race could bode well for an African-American media company, but on the other hand, Obama may take Radio One’s audience as a given and spend his money elsewhere. Looking ahead, Radio One execs said August and September are going very slowly, and that flat results compared to Q3 2007 will be difficult to achieve.
The company is working to make a revenue producer out of its Interactive One, which will provide a group of proprietary information websites aimed at African-American community, which will also provide a vertical ad network, providing a solution of scale to reach the African American community through its own websites and through links to 3rd party partners.
The company was able to report that its basic cable service, TV One, had its first profitable quarter, just getting to the north of the break even point.