Radio One looking at Q1 revenue growth, investing in Radio One


Urban media specialist Radio One has announced that its Board of Directors has greenlighted the purchase of stocks near and dear to the company – its own Class A and Class D common stock – to the tune of up to $15M over the next two years. It is also announcing a double-digit gain in Q1 net revenue.

The company is not bound to repurchase stock, but as long as market conditions are favorable and the price is right, it can pull back $15M in shares through 4/13/13. The company said that if fully implemented, the buyback would amount to about 12.1% of total outstanding shares.

Radio One stated, “Repurchases will be made from time to time in the open market or in privately negotiated transactions in accordance with applicable laws and regulations. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company’s Class A and/or Class D common stock and other factors, and subject to restrictions under applicable law. Radio One expects to implement this stock repurchase program in a manner consistent with market conditions and the interests of the stockholders, including maximizing stockholder value.”

As for its results for the quarter ending 3/31/11, it said that preliminary results indicate an increase of $6.4M in operating revenue, from $59M to $65.4M, a positive move of 10.9%. Operating income is expected to be in the $17.2M-$18.2M range, and EBITDA is expected to weigh in between $9.2M-$10.2M. All of this is expected to result in a net per-share loss of between $0.37-$0.39.

It also made two announcements in reference to TV One:“First, it announced that in connection with its recent increased ownership in TV One, it expects to begin to account for TV One on a consolidated basis once certain approvals from other members of TV One have been received. Radio One expects to receive these approvals by no later than April 30, 2011. Finally, Radio One expects that TV One will redeem the ownership interests held by DIRECTV on or about April 30, 2011. One effect of the redemption will be to increase the ownership interests of the remaining members, increasing Radio One’s ownership to approximately 50.8 percent.”