SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

11.  SEGMENT INFORMATION:

The Company has three reportable segments: (i) Radio Broadcasting; (ii) Internet; and (iii) Cable Television. These segments operate in the United States and are consistently aligned with the Company’s management of its businesses and its financial reporting structure.

The Radio Broadcasting segment consists of all broadcast and Reach Media results of operations. The Internet segment includes the results of our online business, including the operations of CCI. The Cable Television segment consists of TV One results of operations. Corporate/Eliminations/Other represents financial activity associated with our corporate staff and offices, intercompany activity between the three segments and activity associated with a small film venture.

Operating income or loss represents total revenues less operating expenses, depreciation and amortization, and impairment of long-lived assets. Intercompany revenue earned and expenses charged between segments are recorded at fair value and eliminated in consolidation.

     The accounting policies described in the summary of significant accounting policies in Note 1 – Organization and Summary of Significant Accounting Policies are applied consistently across the three segments.

Detailed segment data for the three and six month periods ended June 30, 2011 and 2010 is presented in the following tables:

	Three Months Ended June 30,
	2011			2010
		(Unaudited)
		(In thousands)
Net Revenue:
Radio Broadcasting	$	69,936		$	72,760
Internet		4,307			4,469
Cable Television		25,166			—
Corporate/Eliminations/Other		(2,347	)		(2,083	)
Consolidated	$	97,062		$	75,146
Operating Expenses (excluding depreciation, amortization and impairment charges and including stock-based compensation):
Radio Broadcasting	$	44,581		$	44,798
Internet		4,826			6,516
Cable Television		17,502			—
Corporate/Eliminations/Other		4,125			5,164
Consolidated	$	71,034		$	56,478
Depreciation and Amortization:
Radio Broadcasting	$	2,671		$	3,196
Internet		919			1,360
Cable Television		6,429			—
Corporate/Eliminations/Other		219			281
Consolidated	$	10,238		$	4,837
Operating income (loss):
Radio Broadcasting	$	22,684		$	24,766
Internet		(1,438	)		(3,407	)
Cable Television		1,235			—
Corporate/Eliminations/Other		(6,691	)		(7,528	)
Consolidated	$	15,790		$	13,831
	June 30, 2011			December 31, 2010
		(Unaudited)
		(In thousands)
Total Assets:
Radio Broadcasting	$	886,148		$	894,160
Internet		32,194			33,698
Cable Television		583,102			—
Corporate/Eliminations/Other		22,412			71,354
Consolidated	$	1,523,856		$	999,212

	Six Months Ended June 30,
	2011			2010
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	132,919		$	129,955
Internet		7,821			7,948
Cable Television		25,166			—
Corporate/Eliminations/Other		(3,836	)		(3,777	)
Consolidated	$	162,070		$	134,126
Operating Expenses (excluding depreciation, amortization and impairment charges and including stock-based compensation):
Radio Broadcasting	$	90,455		$	84,591
Internet		9,897			12,138
Cable Television		17,502			—
Corporate/Eliminations/Other		8,528			10,165
Consolidated	$	126,382		$	106,894
Depreciation and Amortization:
Radio Broadcasting	$	5,407		$	6,334
Internet		2,037			2,631
Cable Television		6,429			—
Corporate/Eliminations/Other		448			580
Consolidated	$	14,321		$	9,545
Operating income (loss):
Radio Broadcasting	$	37,057		$	39,030
Internet		(4,113	)		(6,821	)
Cable Television		1,235			—
Corporate/Eliminations/Other		(12,812	)		(14,522	)
Consolidated	$	21,367		$	17,687