Radio One recently announced its operating results for the quarter ended March 31, 2012. Accounting for the consolidation of TV One, net revenue was approximately $103.0 million, an increase of 58.5 percent from the same period in 2011 with TV One contributing approximately $32.2 million of incremental net revenue. The company’s net loss was approximately $79.2 million or $1.58 per share compared to a net loss of $64.2 million or $1.23 per share, for the same period in 2011.
Alfred C. Liggins, III, Radio One's Chief Executive Officer and President, noted that, "Our core radio business was up 6.4 percent and out-performed the markets in which we operate by 480 basis points, led by a recovery in our mid-west markets, continued strong ratings related growth in Atlanta and our newly revamped Detroit cluster. National revenues in larger markets continue to be weak, and I expect that trend to continue until we see some lift from political revenues later in the year. Second quarter core radio revenue is currently pacing up double digits, and we anticipate high single digit revenue growth for the quarter. The growth in our Internet Division revenue and EBITDA is particularly pleasing, and represents a significant improvement from the same period last year. TV One continues to provide robust EBITDA growth and our move towards increased original programming hours should favorably impact ratings in the second half of the year."
The stock was recently trading near $1 a share, significantly below the company’s reported book value of more than $4 per share. The steep discount to book value could make ROIAK appealing to patient value investors.
Radio One, Inc. is one of the nation's largest radio broadcasting companies. The company owns more than 50 broadcast stations and serves 16 of the largest urban markets in the country. The company benefits from keeping a well-defined target audience in mind and primarily targets African-American and urban consumers. Traffic congestion leads to radio listener loyalty in larger urban markets as listeners spend a great deal of time with their favorite station as they fight their way to and from work.
The company also operates an African-American targeted cable television network and the Tom Joyner Morning Show. Radio One owns a number of online platform serving the African-American community through social content, news, information, and entertainment, in addition to operating various online social networking web sites, including BlackPlanet, MiGente, and Asian Avenue.