Weren't able to attend the 2009 Marketing to African-Americans with
Excellence (MAAX) Summit? Order the workbook which contains hard
copies of the presentations made by some of the nation's top experts on
Black consumer marketing, including:
Carol H. Williams Agency
Media Economics Group
Salon Sense Magazine Sanders\Wingo
Target Market News
The MasterMind Group
The Media Audit
The Nielsen Company
U.S. Census Bureau
2009 by Target Market News Inc. All rights reserved
228 S. Wabash Ave.
Chicago, IL 60604
continues rebound with second consecutive profitable quarter
By Thomas Heath
Washington Post (October 30, 2009 ) Radio One posted its second consecutive
profitable quarter Thursday, sending the broadcaster's shares up sharply
and signaling a possible turnaround in the local media business.
The Lanham company said it earned $14.2 million (25 cents a share) in
the third quarter, compared with a loss of $266.1 million ($2.81) a year
earlier. The results for the year-ago period were affected by a one-time
write-down of $337.9 million on the value of its broadcasting licenses.
Shares of Radio One jumped more than 27 percent on the news, gaining 39
cents to close at $1.83.
"It's a pretty decent result," said industry analyst Mark R. Fratrik of
BIA Financial. "They are moving in the right direction. But like every
other radio company, there are both long-term and short-term
Founded in 1980, Radio One owns and operates 53 radio stations across
the United States aimed at African American and urban listeners. The
company has struggled in recent years, and the recession has magnified
However, this summer, Radio One ended a six-quarter losing streak by
reporting a $7.2 million profit for the April-through-June period, as it
reduced operating expenses.
In the third quarter, the company said that revenue fell 12 percent, to
$75.5 million, but that it saw continued signs of improvement in the
radio market. Ad revenue from the food and beverage, retail and
health-care sectors was down less than 5 percent compared with a year
ago, but automotive and financial sector revenue dropped 37.6 percent
and 22.9 percent, respectively.
The impact of those sales declines was muted by continued cuts in
operating expenses. Radio One chief executive Alfred C. Liggins III
called the results "mixed."
"The sequential improvement in radio revenue that we have been seeing
since Q1 continued, but not as strongly as I would have liked," Liggins
said in a statement Thursday. "While certain of our larger categories
are showing signs of recovery, others continue to display significant
While the recession appears to be easing its grip, the radio industry
still faces long-term competition for listeners with other audio
devices, online streaming, iPods and satellite radio. It also competes
with the Internet and cable TV for a greater share of local advertising
"The negative numbers are getting smaller as we progress through 2009,"
Fratrik said. "The rest of the industry will also be showing that type
of lower negative number as the economy starts to rebound."