*Despite a rise in advertising sales that increased revenue in the second quarter, Radio One Inc. is still struggling to refinance debt due to expenses that have dragged earnings sharply lower.
BizJournals.com reports that the company had second-quarter revenue of $75.2 million, up 7.6 percent from $69.9 million in revenue during the same quarter a year earlier. But net income fell to $2.05 million, or 4 cents per share, compared to $7.2 million, or 12 cents per share, a year earlier.
Overall radio revenue rose 8.4 percent. Revenue from its online operations, where it is concentrating on growth, rose 48 percent.
Expenses were pushed higher by an increase in fees, severance costs and compensation expenses, the website reported.
“The volatility in the credit markets has made our refinancing much more complex than we could have anticipated when we started the process,” said CEO Alfred Liggins III.
“While we have triggered certain defaults under the terms of our credit facility, our business remains viable and we are actively engaged in constructive dialogue with our lenders and bondholders.”
Radio One (NASDAQ: ROIA) is negotiating with bondholders to amend terms and most recently extended an exchange offer to Aug. 30.
In June, the company announced plans to refinance all of its outstanding debt and increase its stake in TV One LLC, boosting its stake from 37 percent to 56 percent in the Silver Spring, Md-based cable channel.
Earlier this year, Radio One canceled plans to move its headquarters to D.C.’s Shaw neighborhood, citing timing and the current economy.