Radio One posts 2nd-quarter net of 13 cents per share

August 01, 2002|By Andrea K. Walker | Andrea K. Walker,SUN STAFF

Radio One Inc. yesterday reported second-quarter net income of $13.2 million, or 13 cents a share, up from a loss of $14.6 million, or 16 cents a share, in last year's second quarter.

The Lanham-based company benefited from an improving advertising climate at a time when it was seeing the early fruits from a recent expansion.

Net broadcast revenue was $80.2 million, up 29 percent from a year earlier. Broadcast cash flow increased 28 percent to $43 million from $34 million. Both are key indicators of success in the radio industry.

"We are well beyond the integration stage of all the radio stations we have bought in the last few years and are deep into the optimization stage," said Scott Royster, Radio One's chief financial officer. "Revenue continues to benefit from the very strong ratings experienced by many of our stations in the last few years."

Radio One has acquired more than 40 stations since 1999, more than doubling in size to become the largest radio broadcaster serving black listeners.

Analysts said the new stations have had a positive impact on the company's earnings.

"They've been developing these stations since they bought them," said Jason Helfstein, an analyst with New York-based CBIC WorldMarkets investment bank. "Between that and their ability to sell their demographic, they've managed to grow faster than the rest of the industry."

As the nation has emerged from recession, advertising companies have also begun to spend more, analysts said. Advertising revenue was down 5 percent last year for public radio companies, Helfstein said. This year it's up 4 percent.

"We're clearly in the midst of an advertising rebound that is gaining momentum," said Fred Moran, an analyst with Jeffries & Company Inc. in New York.

Radio One stock rose 60 cents to $15.05 yesterday.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.