Radio One says stations in L.A., Atlanta caused decreased revenue performance

(November 3, 2006) Radio One, Inc. reported its net broadcast revenue for the quarter ended September 30, 2006 was approximately $99.1 million, a decrease of 2% from the same period in 2005. Station operating income was approximately $48.5 million, an increase of 2% from the same period in 2005. Operating income was approximately $35.9 million, a decrease of 6% from the same period in 2005. Net income applicable to common stockholders was approximately $8.0 million or $0.08 per diluted share.

Alfred C. Liggins, III (above), Radio One’s CEO and President stated, “This quarter was a fairly decent one, with the exception of our continuing poor performance in Los Angeles and some softness in Atlanta. In fact, if our LA radio station had performed in line with market industry results, we would have outperformed the radio industry for the quarter. We are working hard to correct our problems in these two locations and recently made significant senior level personnel changes in each of these markets. While we continue to have a lot of work to do, we are optimistic that 2007 will be a year of growth and renewal after what has been the most challenging year we have faced in our 25-year history.”

In September 2006, Radio One completed the acquisition of WIFE-FM, a radio station located in the Cincinnati metropolitan area, for approximately $18.0 million in cash. In connection with the transaction, the company also acquired the intellectual property of radio station WMOJ-FM, also in the Cincinnati market, for approximately $5.0 million in cash and changed WIFE-FM’s call sign to WMOJ-FM. The station has been consolidated with its existing Cincinnati operations.

In August 2006, Radio One announced an agreement to sell the assets of WILD-FM for approximately $30.0 million in cash. Completion of the sale is expected during the fourth quarter of 2006.

Radio One, Inc. is the nation's seventh largest radio broadcasting company (based on 2005 net broadcast revenue) and the largest radio broadcasting company that primarily targets African-American and urban listeners. Including announced dispositions, Radio One owns and/or operates 70 radio stations located in 22 urban markets in the United States and reaches approximately 14 million listeners every week.


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