SEGMENT INFORMATION:

9 Months Ended

Sep. 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 Interactive One and 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 nine month periods ended September 30, 2011 and 2010 is presented in the following tables:

	Three Months Ended September 30,
	2011			2010
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	72,160		$	71,998
Internet		4,884			4,382
Cable Television		29,545			—
Corporate/Eliminations/Other		(2,144	)		(1,950	)
Consolidated	$	104,445		$	74,430
Operating Expenses (excluding depreciation, amortization and impairment charges and including stock-based compensation):
Radio Broadcasting	$	45,607		$	44,283
Internet		5,086			5,663
Cable Television		23,303			—
Corporate/Eliminations/Other		5,825			2,548
Consolidated	$	79,821		$	52,494
Depreciation and Amortization:
Radio Broadcasting	$	2,645		$	3,116
Internet		838			1,222
Cable Television		7,779			—
Corporate/Eliminations/Other		242			272
Consolidated	$	11,504		$	4,610
Operating income (loss):
Radio Broadcasting	$	23,908		$	24,599
Internet		(1,040	)		(2,503	)
Cable Television		(1,537	)		—
Corporate/Eliminations/Other		(8,211	)		(4,770	)
Consolidated	$	13,120		$	17,326

	September 30, 2011		December 31, 2010
	(Unaudited)
	(In thousands)
Total Assets:
Radio Broadcasting	$	886,793	$	894,160
Internet		32,968		33,698
Cable Television		575,334		—
Corporate/Eliminations/Other		25,926		71,354
Consolidated	$	1,521,021	$	999,212

	Nine Months Ended September 30,
	2011			2010
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	205,080		$	201,953
Internet		12,705			12,330
Cable Television		54,711			—
Corporate/Eliminations/Other		(5,980	)		(5,726	)
Consolidated	$	266,516		$	208,557
Operating Expenses (excluding depreciation, amortization and impairment charges and including stock-based compensation):
Radio Broadcasting	$	136,062		$	128,874
Internet		14,983			17,801
Cable Television		40,805			—
Corporate/Eliminations/Other		14,353			12,714
Consolidated	$	206,203		$	159,389
Depreciation and Amortization:
Radio Broadcasting	$	8,052		$	9,452
Internet		2,875			3,853
Cable Television		14,208			—
Corporate/Eliminations/Other		690			851
Consolidated	$	25,825		$	14,156
Operating income (loss):
Radio Broadcasting	$	60,966		$	63,627
Internet		(5,153	)		(9,324	)
Cable Television		(302	)		—
Corporate/Eliminations/Other		(21,023	)		(19,291	)
Consolidated	$	34,488		$	35,012