Thanks To 'Boom', Radio One Revenue Is Up

In an SEC filing, Radio One reports it is seeing clear signs of revenue improvement, attributable to its conversion of stations in Houston, Dallas and Philadelphia to the Classic Hip-Hop format 'Boom'.

Looking ahead to the 1Q earnings to end March 31, 2015, Radio One reports radio revenue is currently pacing up approximately 5.6%, although the Company anticipates this will trend down to low single digit growth due to a timing difference on a major non-traditional revenue event.   Radio One’s Houston cluster of stations is currently pacing up approximately 11.0% for the 1Q 2015.

The company reports initial Nielsen ratings for its new classic hip-hop format are promising.

Across its three debut Boom markets; Houston, Philadelphia and Dallas, the Company has averaged 20 to 25% increases in both audience share and ratings among Adults 25-54 in the format’s first few weeks of delivery.

In Houston, the operating costs of the BOOM format are about half of those of the former news format.  The Company will note that with lower operating costs, the Boom format is expected to improve cash flow in the Houston market by up to approximately $2.5 million within 12 months.