Radio One Inc. said yesterday that its third-quarter profit decreased 2 percent on revenue that grew 20 percent year-to-year. The Lanham company earned $11.5 million (11 cents a share), down from $16.8 million (16 cents, before payment of preferred dividends) a year earlier. Net broadcast revenue rose to $101.3 million from $84.4 million.
Radio One officials said the decrease in revenue was due to a $5.3 million one-time charge the company took to terminate its relationship with Interep National Radio Sales Inc. That charge ultimately will be paid by Katz Communications Inc., which will take over national ad sales.
That deal generated little discussion on the company's conference call yesterday. Analysts were more concerned about a continued downturn in the radio industry, which has been hit by sluggish ad sales and competition from satellite radio, Internet radio and MP3 players.
Company executives did little to allay fears and held out little hope for a quick bounce-back in the radio industry. "Radio is mired in a flattish growth environment, and people who say it is bouncing back are just wrong," Radio One Chief Financial Officer Scott Royster told analysts.
Radio One's stock closed yesterday at $11.25, down 95 cents.