Radio One (USA) revenues dip 5% in third quarter.

Story by Inside Radio

What CEO Alfred Liggins called a “perfect storm” of market conditions pushed Radio One’s revenues down to $112.2 million in the third quarter, a decrease of 5.3% compared to the same period in 2013. Liggins said the combination of “weak market revenues, soft ratings in our four largest markets, and political revenues that were less than anticipated” all added up to a “very soft quarter.”

The company experienced “ratings challenges” in Washington, DC; Baltimore and Atlanta, Liggins said, in addition to a new direct competitor in Houston. “Management has taken steps to remedy these issues,” he added, pointing to a format change in Houston at KROI from news to classic hip-hop. “The initial ratings for our new station, ‘Boom 92,’ are extremely encouraging, and should mean we reverse the annual $1.5 million of losses that we were incurring on the news format,” Liggins said.

Outside its top four markets, the company reported radio revenues were up 1.5% against a flat market. Fourth quarter radio revenue is currently pacing down 1.9% but Liggins expressed optimism that Radio One will muster positive momentum going into the new year. The company’s Reach Media syndication unit had “a similarly weak third quarter, but is performing better in fourth quarter, consistent with the radio division,” Liggins said.