Radio One’s Q1 net revenue came in at $99.1 million, down 3.7% from Q1 2012, due to a timing difference of two annual special events. Station operating income was $35.9 million, up 8.6% from Q1 2012. Operating income was $15.5 million compared to $13.8 million in Q1 2012. Net loss was $18.1 million or $0.36 per share compared to a net loss of $79.2 million or $1.58 per share, for Q1 2012.
Said CEO Alfred Liggins: “I was pleased with our Q1 core radio revenue growth of 4.9% in a flat market, which helped us to grow the radio division’s adjusted EBITDA by 10.7%. Our two largest travel based events, the Tom Joyner Fantastic Voyage and One Love Gospel Getaway, are both taking place in Q2 2013 compared to Q1 in 2012, which effectively moves approximately $7.6 million of revenue and $594,000 of station operating profit from Q1 to Q2 compared to prior year.”
Adjusting for the timing difference for the “Tom Joyner Fantastic Voyage,” Reach Media’s revenue decreased 13.9% for the quarter.
Adjusting for the impact of integrating their syndicated shows and corporate sales into Reach Media, net revenues from the Radio Broadcasting segment for the quarter increased 1.4% over 2012. Furthermore, adjusting for the timing difference for the company’s annual Gospel Cruise event held in March 2012 versus during Q2 2013, core radio revenue from stations increased 4.9% for the quarter, compared to 2012.
Adjusting for the impact of moving syndicated programming over, Reach Media’s net revenues were down 44.0% in the quarter compared to the same period in 2012 primarily due to the timing of the “Tom Joyner Fantastic Voyage” which took place during Q1 2012, and generated revenue of $5.9 million for Reach. Added Liggins, “During the first quarter we integrated our syndicated shows and corporate sales into Reach Media, and I expect a strong return to profitability for that business unit in the second quarter. The Company repurchased almost 1.0 million shares at an average price of $1.59 during the quarter, and I believe that will generate a great long term return for shareholders. Core radio pacings for Q2 are currently up low single digits; we are seeing strong national performance, particularly in larger markets, but widespread softness in local business.”
Radio One recognized $36.0 million and $32.2 million of revenue from the Cable Television segment during the Q1 2013, and Q1 2012, respectively. Net revenues for the internet business decreased 12.7% for the quarter, compared to the same period in 2012.
“Our Cable Television segment had Q1 revenue and adjusted EBITDA growth of 11.6% and 27.7%, respectively, and continues its positive growth momentum,” said Liggins.
Impairment of long-lived assets for the quarter increased to $1.4 million and related to a non-cash impairment charge recorded to reduce the carrying value of their Cincinnati radio licenses.
Income (loss) from discontinued operations, net of tax, includes the results of operations for sold radio stations (or stations made the subject of an LMA). Income from discontinued operations, net of tax, was $903,000 for the quarter, compared to a loss from discontinued operations, net of tax, of $15,000 for the same period in 2012. The activity for Q1 resulted primarily from the sale of WJKR-FM (The Jack, 98.9 FM) Columbus, OH in February which resulted in a gain of $893,000.