Consolidating TV One into the company had a positive effect on overall net revenue for Radio One during Q2 2012, and its radio properties experienced positive growth and would have done better if not for a scheduling technicality.And pacings are looking good.
In all, net revenue came home at $105.9M, an increase of 9.1% over Q2 2011. Radio income was up 2.7%, but according to CEO Alfred C. Liggins III, the timing of the company’s One Love Gospel Cruise impacted that result negatively, and taking it out of the equation results in a more impressive radio revenue gain of 6.5%.
Liggins said, “I was pleased with our second quarter core radio revenue growth of 6.5% year over year. While the timing of the One Love Gospel Cruise and other corporate revenues brought the headline radio revenue growth rate down to 2.7%, I believe we strongly outperformed the markets in which we operate. We expect this trend to continue into the third quarter, where we are currently pacing up high single digits, with political revenues likely to strengthen as we move closer to the Presidential election. TV One continued its growth trajectory with Quarterly EBITDA of $11.7 million, up 32.8% from the same period last year. The dividends received from TV One remain an important source of cash-flow for Radio One, and we intend to manage this aspect of the business prudently, with a view towards managing our bank covenant step-downs in 2013. Our Internet division had a somewhat weaker than expected second quarter, with a lack of tent-pole events around which to build revenue. I expect their progress towards profitability to resume in the third quarter.”
Radio One said its radio clusters did well in Atlanta, Baltimore, Dallas, Detroit, Indianapolis, Raleigh and Washington D.C.; while slipping in Columbus, Philadelphia
and St. Louis.
Reach Media suffered a 12.6% decline in part because of changes in its affiliation agreements that became effective at the beginning of the year. Meanswhile, internet revenues had a modest 2.7% increase.
Reeling in TV One had the natural effect of increasing corporate expenses, creating higher expenses in programming, technical and personnel; the higher costs of talent also affected Reach Media.