8-13-13
Radio One CEO Alfred Liggins said his company is working well across all divisions, adding, "We feel very bullish about growing radio. It's the locomotive that drives our business." Radio One reported Q2 same-station radio revenue was flat compared to the same quarter last year. Liggins said National was up 11.8 percent while local was down 5.7 percent. Auto advertising was the 6th-best category for Radio One down 7 percent for the year. The top five categories for the quarter were retail, food and beverage, Telecom, Entertainment, and Financial. Liggins says he's focusing on operating performance. Here are more details on the Radio One numbers.
Radio One reported operating income of approximately $18.4 million for the three months ended June 30, 2013, compared to operating income of $21.5 million for the same period in 2012. Net loss was approximately $14.2 million or $0.29 per share compared to net income of $42.7 million or $0.85 per share, for the same period in 2012. Liggins says Radio One's leverage is getting very close to where Cumulus is and he thinks about refinancing all the time. "That's our focus."
Advertising has been choppy, according to Liggins, with a slowdown in June that took core radio revenues from low single digit positive to a -0.6 percent finish. July core radio station net revenue was +5.0 percent and Q3 is currently pacing up low single digits.
(8/13/2013 9:42:15 PM)
Ryder,your reaction is typical of a radio person...that is, to attack another medium, in your case, TV. You fail to address MacKay's comments--that is, that car dealers see no ROI with major/medium market radio. And I have never seen TV run 10 or 12 or more commercials IN A ROW, like many FM stations now do.
(8/13/2013 5:25:26 PM)
Car Dealer's need to realize their TV runs back-to-back-to-back with all the other dealers in town! At least with a good station a dealer can still dominate the airwaves! It's up to us to point this stuff out. Fact - The Dealers are done with Arbitron's outdated methodology so we as sellers need to step it up and point out reasonable facts about our medium so they will buy. Fact - There is no creativity at Ad Agencies, they are too caught up in cpp and it's killing the biz!
(8/13/2013 2:34:13 PM)
Radio owners and managers are in denial, and tone deaf on this...again, the INDIVIDUAL CAR DEALER DOLLARS ARE GOING AWAY, in major and medium markets....Because unlike 15 years ago, the dealers have numerous alternatives now. So either radio needs to cut the crap, and dramatically shorten the breaks to 3 or 4 spots SO THAT LISTENERS ACTUALLY KEEP TUNED AND HEAR THE COMMERCIALS, or radio is done.
(8/13/2013 2:29:29 PM)
Automotive is down 7%, and Liggins is bullish?! Huh? Wha? Guys, I call on auto dealers every day...in major and even many medium markets, AUTO DEALERS ARE DONE WITH RADIO. They are sick and tired of their commercials NOT being heard,buried in 10-12 commercials or more, cluster breaks.There is no ROI for dealers. Sure, radio still gets the national and regional ad dollars - which conveniently for radio cannot be measured- but the individual dealer dollars are going away. Radio owners
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