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Radio One Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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Radio One Inc. (ROIA) filed Quarterly Report for the period ended 2012-06-30.

Radio One, Inc. has a market cap of $40 million; its shares were traded at around $0.79 with and P/S ratio of 0.1.

Highlight of Business Operations:

During the three months ended June 30, 2012 and 2011, approximately 59.0% and 63.1%, respectively, of our net revenue was generated from the sale of advertising in our core radio business, excluding Reach Media. Of our total net revenue, for the three months ended June 30, 2012, approximately 43.5% of our net revenue was generated from local advertising and approximately 34.0% was generated from national advertising, including network advertising. In comparison, during the three months ended June 30, 2011, approximately 43.9% of our net revenue was generated from local advertising and approximately 35.0%, was generated from national advertising, including network advertising. During the six months ended June 30, 2012 and 2011, approximately 55.5% and 68.2%, respectively, of our net revenue was generated from the sale of advertising in our core radio business, excluding Reach Media. Of our total net revenue, for the six months ended June 30, 2012, approximately 41.0% of our net revenue was generated from local advertising and approximately 32.7% was generated from national advertising, including network advertising. In comparison, during the six months ended June 30, 2011, approximately 48.8% of our net revenue was generated from local advertising and approximately 32.6%, was generated from national advertising, including network advertising. National advertising also includes advertising revenue generated from our Internet segment. The balance of net revenue from our radio franchise was generated from tower rental income, ticket sales and revenue related to our sponsored events, management fees and other revenue. The change in revenue mix is due to the consolidation of TV One.

During the three months ended June 30, 2012, we recognized approximately $105.9 million in net revenue compared to approximately $97.1 million during the same period in 2011. These amounts are net of agency and outside sales representative commissions, which were approximately $9.2 million during the three months ended June 30, 2012, compared to approximately $8.6 million for the comparable period in 2011. We began to consolidate the results of TV One during the second quarter of 2011 and recognized approximately $32.3 million of revenue from our new cable television segment during the three months ended June 30, 2012 compared to $25.2 million for the period April 15, 2011 through June 30, 2011. Net revenue for our radio broadcasting segment increased 2.7% and excluding the timing difference for the Company s annual Gospel Cruise held in March 2012 versus April 2011, our core radio revenue, including syndicated programming, increased 6.5% for the quarter ended June 30, 2012 compared to the same period in 2011. Our Atlanta, Baltimore, Dallas, Detroit, Indianapolis, Raleigh and Washington D.C. clusters posted the most significant quarterly growth, while our Columbus, Philadelphia and St. Louis markets posted the most significant declines. Reach Media s net revenues decreased 12.6% in the second quarter 2012 compared to the same period in 2011 partially due to changes to certain of Reach Media s affiliate agreements that became effective on January 1, 2012. Net revenues for our internet business increased 2.7% for the three months ended June 30, 2012 compared to the same period in 2011.

During the six months ended June 30, 2012, we recognized approximately $209.0 million in net revenue compared to approximately $162.1 million during the same period in 2011. These amounts are net of agency and outside sales representative commissions, which were approximately $16.4 million during the six months ended 2012, compared to approximately $15.4 million during the same period in 2011. We began to consolidate the results of TV One during the three months ended June 30, 2011 and recognized approximately $25.2 million of revenue from our cable television segment for the period April 15, 2011 through June 30, 2011 versus approximately $64.5 million for the six months ended June 30, 2012. Net revenue for our radio broadcasting segment increased 5.6% for the six months ended June 30, 2012. Our Atlanta, Baltimore, Detroit, Indianapolis and Raleigh markets experienced the most significant net revenue growth, while our Charlotte, Columbus Houston, Philadelphia and St. Louis markets experienced declines. Reach Media's net revenue decreased 9.8% for the six months ended June 30, 2012 compared to the same period in 2011 partially due to changes to certain of Reach Media s affiliate agreements that became effective January 1, 2012. Net revenue for our internet business increased 30.5% for the six months ended June 30, 2012 compared to the same period in 2011. Our internet business continued to recognize strong revenue growth due to an improved sales effort and strong traffic growth.

During the six months ended June 30, 2012, we recognized approximately $209.0 million in net revenue compared to approximately $162.1 million during the same period in 2011. These amounts are net of agency and outside sales representative commissions, which were approximately $16.4 million during the six months ended 2012, compared to approximately $15.4 million during the same period in 2011. We began to consolidate the results of TV One during the three months ended June 30, 2011 and recognized approximately $25.2 million of revenue from our cable television segment for the period April 15, 2011 through June 30, 2011 versus approximately $64.5 million for the six months ended June 30, 2012. Net revenue for our radio broadcasting segment increased 5.6% for the six months ended June 30, 2012. Our Atlanta, Baltimore, Detroit, Indianapolis and Raleigh markets experienced the most significant net revenue growth, while our Charlotte, Columbus Houston, Philadelphia and St. Louis markets experienced declines. Reach Media's net revenue decreased 9.8% for the six months ended June 30, 2012 compared to the same period in 2011 partially due to changes to certain of Reach Media s affiliate agreements that became effective January 1, 2012. Net revenue for our internet business increased 30.5% for the six months ended June 30, 2012 compared to the same period in 2011. Our internet business continued to recognize strong revenue growth due to an improved sales effort and strong traffic growth.

Net cash flows used in investing activities were approximately $1.7 million for the six months ended June 30, 2012 compared to net cash flows provided by investing activities of approximately $61.6 million for the six months ended June 30, 2011. Capital expenditures, including digital tower and transmitter upgrades, and deposits for station equipment and purchases were approximately $6.7 million and $3.6 million for the six months ended June 30, 2012 and 2011, respectively. Proceeds from sales of investment securities were approximately $5.6 million for the six months ended June 30, 2012. Cash flow from investing activities for the six months ended June 30, 2011 were primarily due to the net cash and investments acquired in connection with the TV One consolidation of approximately $65.2 million.

Read the The complete Report

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10qk
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