Tag - Broadcasting

Radio One, Inc. (Nasdaq: ROIAK) shares are plunging after the radio broadcasting company posted a fourth-quarter loss of $386.4 million, or $3.91 per share, down substantially from a loss of $25.5 million, or $0.26 per share, a year earlier. Wall Street analysts were expecting Radio One to earn $0.03 per share.

Quarterly revenue totaled $78 million, down 5% from $82.3 million during the year-ago period. Analysts, on average, predicted revenue of $83.7 million.

“As predicted, the industry experienced a soft fourth quarter, with the markets in which we operate down 5% year to year,” CEO Alfred Liggins said in a statement. “The market continues to be challenging, particularly at the national level; however, we are seeing some good local revenue numbers and are optimistic that there may be a halt to the overall revenue decline in first quarter.”

In afternoon trading, ROIAK shares are down 19.88%, or $0.33, at $1.33. Over the last 52 weeks, shares have ranged from $1.32 to $7.73.

Emmis Communications Corp. (Nasdaq: EMMS) announced before the opening that its second-quarter earnings fell 89%. Earnings during the three month period ended Aug. 31 fell to $11.8 million, or $0.31 a share, from $110.1 million, or $2.95 per share, in the year-ago period. Revenue sagged to $96.4 million, from $99.9 million during the same quarter of 2006.

Lower profits were caused by weak radio sales, the broadcasting company said in a press release.

"Expected weakness in our radio division persisted,” CEO Jeff Smulyan said in a statement. “Our results were in line with our guidance for the quarter, and we continue to face a challenging market environment."

Operating income fell to $16.5 million, from $22.1 million a year earlier.

In morning trading, EMMS shares are up 1.51%, or $0.08, at $5.38. Over the last 52 weeks, shares have ranged from $4.75 to $13.22.

There’s a joke that’s been repeated ad infinitum since investors began investing:  How do you make a small fortune? (Drum roll, please.) Start with a large fortune.

The joke’s no longer a rib-splitter (and probably never was), but it’s not the reason long-time Journal Communications, Inc. (NYSE: JRN) shareholders aren’t smiling. After going public in September 2003 at $16 per share, Journal’s stock spent the next five months skipping north to $20. From that not-so-lofty peak, though, it’s been a slow, steady slog south to $10 and change.

Journal is suffering from the same chronic contagion afflicting most print-journal enterprises—declining readership, weak ad revenues and Internet competition.

But maybe Journal should be receiving better treatment than its broadsheet brethren. Yes, newspaper publishing (led by the Milwaukee Journal Sentinel) is a major segment, comprising 49% of revenue and 35% of operating earnings, but that makes Journal far from a pure-play newspaper. Other segments—radio and television broadcasting, printing services and “other”—comprise 51% of revenue and 65% of operating earnings.  

Of the majority triumvirate, broadcasting is the most promising and is the segment management is most actively managing. On the radio front, stations have swelled to 36 (mostly in the Midwest) from 19 in the past eight years—the goal being to acquire and align the stations in clusters within a market, building out the cluster to offer distinct solutions for sundry advertisers in any given market.

On the television front, expansion has occurred at an ever faster rate. At current count, Journal owns 11 stations in the Midwest, West and South (up from three in 1999). Four are affiliated with ABC, three with NBC, two with Fox, one with CBS and one with UPN: The goal being to increase locally produced programming stations and related Internet revenue.

As broadcasting grows, publishing shrinks. The Ohio and Louisiana publishing operations are gone, and the Connecticut and Vermont operations will soon follow. Once all the “I’s” are dotted and the “T’s” are crossed, Journal’s publishing group will be focused on Wisconsin and Florida. Both markets will be leveraged by several websites operating under the popular Journal Interactive brand. (Though still small, Journal Interactive’s add revenue has increased an average of 38% per year over the past two years.)