KKBT Loses $23 million in Q4 2006

[Chris_Rose]

Inside Radio reported earlier this week that KKBT Cashflow is down froom $20m to $5m over the last 18 months. An inquiry has been launched against Radio One after misdating of stock options was discovered going back eight years. Radio One was recently threatened with being delisted by Nasdaq. Five years ago, Radio One stock was trading at almost $25 per share, it closed this week at $6.73 per share.

This broadcast company is in piss poor shape. All roads lead directly to Alfred Liggins. Can anything be done to save Radio One or is it fast becoming a lost cause?

 

[davideduardo]

Inside Radio reported earlier this week that KKBT Cashflow is down froom $20m to $5m over the last 18 months. An inquiry has been launched against Radio One after misdating of stock options was discovered going back eight years. Radio One was recently threatened with being delisted by Nasdaq. Five years ago, Radio One stock was trading at almost $25 per share, it closed this week at $6.73 per share.

This broadcast company is in piss poor shape. All roads lead directly to Alfred Liggins. Can anything be done to save Radio One or is it fast becoming a lost cause?

KKBT did not lose $23 million. No station in LA costs $100 million a year to run, and that would be assuming zero billing.

Most of the Radio One markets and stations are doing quite well.

 

[Chris_Rose]

CORRECTION: "Radio One" loses $23 million in Q4 2006 (not KKBT)

"Urban media specialist Radio One said Wednesday that its preliminary fourth-quarter net loss totaled $22.9 million, or 23 cents a share, off from net earnings of nearly $10 million, or 10 cents a share, during the same period in 2005. The Lanham, Md.-based operation said its net broadcast revenues slipped to $86.2 million, down from $90.6 million." -Source: Jeffrey Yorke R&R

Most Radio One markets are NOT doing "quite well". In 3Q of 2006, Liggins blamed his companies woes on the Atlanta market "failing to convert it's strong ratings into revenue." He subsequently demoted one of Radio Ones strongest and brightest executives, Wayne Brown from Regional VP to market GM. Mr. Brown was replaced by Bruce Demps who Radio One picked up after Demps was dumped by Clear Channel.

Each quarter, the companies problems are blamed on another Radio One market. Which market will be blamed when Q1 2007 losses are calculated? When does the buck stop with Liggins?

Just because your mama was smart enough to buy into radio while the getting was still good, doesn't mean that as her son, you're talented or smart enough to run a national radio broadcast group. MANY executives within Radio One realize this sad fact. Liggins is a notorious "micro manager" that has to have his fingers in every local market decision. This comes from people well placed within the "organization".

Radio One talks a good game, but they routinely fail to live up to their own rhetoric. The informal inquiry recently launced by the SEC proves that Radio One is failing to honor its own "Code of Ethics". http://radio-one.com/about/ethics.asp

Namely;
• promote full, fair, accurate, timely and understandable disclosure;
• promote compliance with applicable laws and governmental rules and regulations;

This company is weak because it's CEO is weak. On the verge of being DE-LISTED by NASDAQ? This company is clearly not doing "quite well". There is great concern within the company that a thorough investigation by the SEC is likely to uncover significant other business failings and corporate malfeasance. My guess is that it will.