Radio One, Inc. (NASDAQ:ROIAK) Reports Third Quarter Results, How Will the Crowd Respond?

Radio One, Inc. (NASDAQ:ROIAK) has released its results for Q3, 2016.

WASHINGTON, Nov. 3, 2016 /PRNewswire/ — Radio One, Inc. (NASDAQ:ROIAK and ROIA) today reported its results for the quarter ended September 30, 2016.  Net revenue was approximately $110.9 million, a decrease of 4.3% from the same period in 2015. Broadcast and internet operating income1 was approximately $43.0 million, an increase of 2.9% from the same period in 2015. The Company reported operating income of approximately $24.5 million for the three months ended September 30, 2016, compared to operating income of $7.1 million for the same period in 2015. Net loss was $423,000 or $0.01 per share (basic) compared to $18.1 million or $0.38 per share (basic) for the same period in 2015.

Alfred C. Liggins, III, Radio One’s CEO and President stated, “Despite softer than anticipated third quarter revenues, our continuing cost control measures helped to deliver positive Adjusted EBITDA for the quarter, and we re-affirm our guidance for Adjusted EBITDA in the range $133-$137 million for FY 2016. During the third quarter we signed a letter of intent for the sale of our FM towers, and we anticipate closing that transaction in the fourth quarter.

Based on Miller Kaplan, our radio clusters were down 6.4%, compared to the markets -3%. Total spot revenue for our radio clusters in the third quarter was -4.3% compared to prior year, a slight underperformance versus our markets, which were down 3.2%. The anticipated lift from political advertising revenue did not materialize in Q3, although we have subsequently seen a significant increase in political revenue as election day approaches. Our fourth quarter radio pacings are currently up approximately 3.6%. We have continued to eliminate unprofitable NTR events, which has helped mitigate the impact of lower radio revenues on the bottom line, and recently made a significant new hire for our local digital business which I believe will help us to grow that revenue stream over time: Mark Charnock, formerly SVP of Sales at Monster, has been recruited as Chief Digital Revenue Officer for the radio division and Reach Media.

Cable television revenues were impacted by audience under-delivery relative to our 2015/16 upfront rate card, but as we move into Q4 and the new broadcast year, we have course-corrected and this issue is not expected to recur. We anticipate high single digit advertising growth for TV One in the fourth quarter.

In order to better reflect the diversified media platform that we have built, effective January 2017, we will be renaming the company Urban One, Inc. Each entity will retain their current brands and names, so the radio stations will continue to roll-up under the Radio One brand, and the same applies to TV One, Interactive One and Reach Media.”

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Forward-looking statements represent management’s current expectations and are based upon information available to Radio One at the time of this release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Radio One’s control, that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially are described in Radio One’s reports on Forms 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission (the “SEC”). Radio One does not undertake any duty to update any forward-looking statements.

Original Source

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Shares of Radio One, Inc. (NASDAQ:ROIAK) are actively moving +4.55% thus far today on the news and have traded in the range of $2.20 – 2.30 during the session.  A number of research firms have recently weighed in on the stock, providing future price targets. The covering firms currently have a consensus one-year price target of $N/A on the stock.  This is according to brokerage analysts polled by Thomson Reuters First Call.  This is the average number from the individual targets provided by the firms.  Analysts are projecting earnings per share of $0.00 for the next fiscal quarter.  For the current year, analysts are predicting earnings of $0.00 per share according to First Call.

In looking at where the stock is trading on a technical level, the stock is trading -16.60% away from its 50-day moving average of $2.76.  Based on the most recent available data, the equity is -35.57% off of its 52-week high of $3.57 and +112.96% away from its 52-week low which is $1.08.

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Today, the stock opened at $2.20 and the last bid at the time of writing stood at $2.30.  During the session thus far, the equity dipped down to $2.20 and touched $2.30 as the high point.  Radio One, Inc. (NASDAQ:ROIAK) has a market cap of $110.78M and has seen an average daily volume of 1.831 over the past three months.

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