With $5.7 million in political revenue in Q4 of 2016, Radio One was able to post a net revenue increase of $3.8% for a total of $113.6 million, from all of its divisions. The radio division was up 1.2% for the quarter with local revenue down 4.1% and national up $7.3%, largely driven by political.
Radio One took in $5.7 million in political in Q4 2016 compared to $1.2 million in 2015. Of particular interest was the automotive category dropping 17% in the quarter and the financial segment off by 25%.
Radio One’s best revenue-performing markets were Charlotte, Cleveland, Indianapolis, Raleigh, and St. Louis. Laggard markets included Dallas, Houston, and Washington D.C. Reach Media’s net revenues decreased 5.5% in the fourth quarter 2016, compared to the same period in 2015, due primarily to lower advertising revenue. Revenue for Radio One’s Internet business increased 20.9% in the quarter and the company plans to make additional investments on the digital side to keep that segment growing.
Radio One CEO Alfred Liggins did not seem optimistic about the first quarter of 2017. He said the company was pacing down in the mid-single digits. Reach Media is also pacing down due to Wal-Mart and Carmax not placing as much advertising in the first quarter. Liggins did say he expects better advertising in his TV division and MGM casino investment to offset any shortfalls in radio and Reach Media.
Liggins also gave an update on the Radio One investment in the MGM Casino which was open for three weeks in December and into the first quarter. Radio One has $40 million invested in the casino in National Harbor, Maryland. He says the casino is on track to take in $600 million per year and Radio One’s take of 1% will net the company $6 million per year just as expected.
