CEO Alfred Liggins says stronger ratings have not resulted in higher revenue as of yet and the Houston market is severely underperforming. Local radio revenue was down 8% while national was down 6.2%; and when you take a look at the Miller/Kaplan number, markets in which Radio One operates were down 2% while the company was down over 7%. Houston, Atlanta, Baltimore, and Indianapolis were the underperforming markets for Radio One, while Dallas and Washington, DC, were strong. Q1 is pacing down 4.3% for Radio One with, again, Houston being the big drag on the company.
Liggins says the changes the company made to bolster ratings is working, however that has not yet translated to more revenue. There’s always a lag, Liggins said, he’s just not sure if it’s three months, six months or nine months. Another issue Radio One is dealing with is a shortage of account executives. He says as the radio industry matures, it’s tougher to recruit younger people who have more options. Liggins said, “We got caught flat footed.”
