|Radio One Q3|
Net revenue was $104.4 million, up 40.3% from $74.4 million in Q3 2010. Also adding in the consolidation of TV One, station operating income was $35.8 million, an increase of 26.5% from the same period in 2010. Radio was relatively flat, however, both the TV and Internet divisions both showed good revenue movement from the prior year’s quarter.
In Q3, Radio One/Houston launched News 92 FM on KROI; in Columbus, OH they switched from Gospel to the Jack format on WXMG; in Detroit they signed an LMA for WGPR-FM for its Hip-Hop format and launched WPZR-FM on its 102.7 frequency; and in Philadelphia, they swapped their Urban AC format with their Hip-Hop signal with WPOI-FM and WRNB-FM, respectively. Arbitron’s implementation of the PPM ratings system in these markets drove a few these strategic changes.
Radio One’s overall operating income was $13.1 million compared to operating income of $17.3 million for Q3 2010. Net loss was $9.9 million or $0.20 per share, compared to net income of $1.0 million or $0.02 per share for Q3 2010.
Alfred C. Liggins, III, Radio One CEO, CFO Peter Thompson and Radio Division President Barry Mayo discussed the results and strategy—including market by market and by ad category—in the quarterly call. Listen to the audio, above.
Radio One began to consolidate the results of TV One during Q2 and saw some $29.5 million of revenue from the network in the quarter. Their radio markets grew 1.7% for the quarter and 2.5% year to date, led primarily by growth in digital. National and local revenue for their radio markets were relatively flat for the quarter.
Radio stations’ net revenues increased 0.3% with the most significant increases in Atlanta, Charlotte, Cincinnati, Raleigh and St. Louis (which saw the best growth). Columbus, Dallas, Indianapolis and DC markets experienced the most significant declines. Total core radio revenue (radio stations and syndicated programs excluding Reach Media) improved 1.4% during the quarter. While Reach Media’s revenue declined 4.7% in the quarter, this decline was an improvement from the decline experienced during Q2. Net revenue for the internet segment improved 11.5%.
Operating expenses, excluding depreciation and amortization and stock-based compensation, increased to $79.1 million for the quarter, up 53.3% from $51.6 million in Q3 2010. Most of the increase is a result of the TV One consolidation specifically related to programming and technical operating expenses.
$13.7 million of their consolidated programming and technical operating expenses were incurred by TV One, with $11.2 million relating specifically to content amortization. Excluding the impact of consolidating TV One results, programming and technical expenses would have increased by 1.6% for the quarter compared Q3 2010.