<PAGE>   1

===============================================================================
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-Q


[x]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


                      FOR THE QUARTER ENDED MARCH 31, 1999

                                       OR


[ ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


                        Commission File Number: 0-21575


                              METRO NETWORKS, INC.
               (Exact name of registrant as specified in charter)

         DELAWARE                                       76-0505148
  (State of incorporation)                    (IRS Employer Identification No.)

   2800 POST OAK BLVD., SUITE 4000                     77056-6199
         HOUSTON, TEXAS                                (Zip Code)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)


Registrant's telephone number, including area code:  (713) 407-6000


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days. [x] Yes  [ ] No



        SHARES OF COMMON STOCK OUTSTANDING AT APRIL 30, 1999: 16,727,404

===============================================================================



<PAGE>   2



                              METRO NETWORKS, INC.

                                     INDEX

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                         Number
                                                                                                         ------
<S>                                                                                                      <C>
Part I - Financial Information

         Item 1.  Financial Statements (unaudited)                                                             
                                                                                                               
                  Consolidated Balance Sheets ........................................................      2  
                                                                                                               
                  Consolidated Statements of Earnings ................................................      3  
                                                                                                               
                  Condensed Consolidated Statements of Cash Flows ....................................      4  
                                                                                                               
                  Consolidated Statement of Stockholders' Equity .....................................      5  
                                                                                                               
                  Notes to Consolidated Financial Statements .........................................      6  
                                                                                                               
                                                                                                               
         Item 2.  Management's Discussion and Analysis of                                                      
                  Results of Operations and Financial Condition ......................................      8  
                                                                                                               
                                                                                                               
Part II - Other Information                                                                                
                                                                                                               
         Item 2.  Changes in Securities and Use of Proceeds ..........................................     11  
                                                                                                               
         Item 6.  Exhibits and Reports on Form 8-K ...................................................     11  
</TABLE>


<PAGE>   3


                     Metro Networks, Inc. and Subsidiaries
                          CONSOLIDATED BALANCE SHEETS
                     (in thousands, except per share data)


<TABLE>
<CAPTION>

                                                                    MARCH 31,    DECEMBER 31,
                                                                      1999         1998
                                                                  -----------    -----------
                                                                  (UNAUDITED)
<S>                                                               <C>            <C>        
ASSETS
CURRENT ASSETS
Cash and cash equivalents                                         $    25,262    $    21,241
Short-term marketable investments                                         290            331
Accounts receivable, net                                               44,936         52,429
Reciprocal receivables, net                                            13,366         11,310
Merchandise and scrip inventory                                         1,035            730
Other                                                                   2,397          2,203
                                                                  -----------    -----------
     Total current assets                                              87,286         88,244
                                                                  -----------    -----------

PROPERTY AND EQUIPMENT, NET                                            30,332         29,880
PURCHASED BROADCAST CONTRACTS AND OTHER INTANGIBLES,
     NET OF ACCUMULATED AMORTIZATION OF $16,665 AND $15,545            18,456         19,500
OTHER ASSETS                                                            1,324          1,463
                                                                  -----------    -----------
                                                                  $   137,398    $   139,087
                                                                  ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable                                                  $     2,637    $     4,937
Notes payable                                                             427            510
Reciprocal payables and accrued liabilities                            12,327         11,055
Accrued liabilities                                                     7,451         11,540
Current portion of long-term debt                                         380            429
                                                                  -----------    -----------
     Total current liabilities                                         23,222         28,471

LONG-TERM DEBT                                                             37             53
DEFERRED INCOME TAXES                                                   1,044          1,044
OTHER                                                                     715            715
                                                                  -----------    -----------
     Total liabilities                                                 25,018         30,283
                                                                  -----------    -----------
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value (authorized 10,000,000 shares)             3              3
Common stock, $.001 par value (authorized 25,000,000 shares)               17             17
Additional paid-in capital                                             76,631         74,689
Retained earnings                                                      36,595         34,920
Accumulated other comprehensive loss - net unrealized                    
    depreciation of equity investments                                   (866)          (825)
                                                                  -----------    -----------
                                                                      112,380        108,804
                                                                  -----------    -----------
                                                                  $   137,398    $   139,087
                                                                  ===========    ===========
</TABLE>

-------------------
The accompanying notes are an integral part of these financial statements.

                                      -2-

<PAGE>   4



                     Metro Networks, Inc. and Subsidiaries
                 UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
                     (in thousands, except per share data)


<TABLE>
<CAPTION>

                                                    THREE MONTHS ENDED
                                                        MARCH 31,
                                                 ------------------------
                                                    1999          1998
                                                 ----------    ----------
<S>                                              <C>           <C>       
REVENUES                                         $   42,008    $   34,392

OPERATING COSTS AND EXPENSES
Broadcasting                                         24,937        19,591
Marketing                                             8,690         7,456
General and administrative                            3,036         2,724
Depreciation and amortization                         2,730         2,371
                                                 ----------    ----------
                                                     39,393        32,142
                                                 ----------    ----------

TOTAL OPERATING EARNINGS
                                                      2,615         2,250

OTHER (INCOME) EXPENSE
Interest income                                        (233)         (223)
Interest expense                                         16            63
Other                                                    38           (95)
                                                 ----------    ----------
                                                       (179)         (255)
                                                 ----------    ----------

EARNINGS BEFORE STATE AND FEDERAL INCOME TAXES        2,794         2,505

STATE AND FEDERAL INCOME TAXES                        1,119         1,052
                                                 ----------    ----------

NET EARNINGS                                     $    1,675    $    1,453
                                                 ==========    ==========

BASIC EARNINGS PER SHARE                         $      .10    $      .09
                                                 ==========    ==========

BASIC AVERAGE COMMON SHARES OUTSTANDING              16,684        16,587
                                                 ==========    ==========

DILUTED EARNINGS PER SHARE                       $      .10    $      .09
                                                 ==========    ==========

DILUTED AVERAGE COMMON SHARES OUTSTANDING            17,301        16,891
                                                 ==========    ==========
</TABLE>


---------------
The accompanying notes are an integral part of these financial statements.


                                      -3-

<PAGE>   5



                     Metro Networks, Inc. and Subsidiaries
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                    THREE MONTHS ENDED
                                                                         MARCH 31,
                                                                 --------------------------
                                                                    1999           1998
                                                                 -----------    -----------
<S>                                                              <C>            <C>        
OPERATING ACTIVITIES
Net Earnings                                                     $     1,675    $     1,453
Adjustments to reconcile net earnings to
     cash provided by operating activities
          Depreciation and amortization                                2,730          2,379
          Deferred federal income taxes                                 --              125
          Provision for doubtful accounts                                388            197
          Loss on dispositions of property and equipment                --                8
          Changes in operating assets and liabilities                   (591)        (1,202)
                                                                 -----------    -----------
          Cash provided by operating activities                        4,202          2,960
                                                                 -----------    -----------

INVESTING ACTIVITIES
Additions to property and equipment                                   (1,953)        (2,578)
Purchases of marketable securities                                      --             (379)
Proceeds from sale of property and equipment                               3             65
Purchases on other investments                                           (25)
Acquisitions of companies                                               --           (1,000)
                                                                 -----------    -----------
          Cash used for investing activities                          (1,975)        (3,892)
                                                                 -----------    -----------

FINANCING ACTIVITIES
Repayments of long-term debt                                            (148)          (506)
Proceeds from issuance of common stock                                 1,942             16
                                                                 -----------    -----------
          Cash provided by (used) for financing activities             1,794           (490)
                                                                 -----------    -----------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                       4,021         (1,422)
CASH AND CASH EQUIVALENTS
Beginning of period                                                   21,241         25,087
                                                                 -----------    -----------
End of period                                                    $    25,262    $    23,665
                                                                 ===========    ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest                         $        16    $        36

Cash paid during the period for state and federal income taxes   $     3,504    $       586


SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES
Property and equipment acquired through reciprocal activities    $        80    $        99
</TABLE>


--------------------
The accompanying notes are an integral part of these financial statements.

                                      -4-

<PAGE>   6



                     Metro Networks, Inc. and Subsidiaries
            UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                   For the Three Months Ended March 31, 1999
                     (in thousands, except per share data)


<TABLE>
<CAPTION>

                                                                                ACCUMULATED
                                                                    ADDITIONAL     OTHER
                                            PREFERRED    COMMON      PAID-IN   COMPREHENSIVE  RETAINED
DOLLAR AMOUNTS                                STOCK      STOCK       CAPITAL       LOSS       EARNINGS     TOTAL
--------------                              ---------   ---------   ---------    ---------    ---------   ---------
<S>                                         <C>         <C>         <C>          <C>          <C>         <C>      
BALANCE, DECEMBER 31, 1998                  $       3   $      17   $  74,689    $    (825)   $  34,920   $ 108,804


Issuance of stock under Stock Option Plan        --          --         1,942         --           --         1,942


Net earnings                                     --          --          --           --          1,675       1,675

     Other comprehensive loss                    --          --          --            (41)        --           (41)
                                                                                                          ---------

Comprehensive income                             --          --          --           --           --         1,634
                                            ---------   ---------   ---------    ---------    ---------   ---------
                                            $       3   $      17   $  76,631    $    (866)   $  36,595   $ 112,380
BALANCE, MARCH 31, 1999                     =========   =========   =========    =========    =========   =========
</TABLE>


<TABLE>
<CAPTION>

                                                  SHARES ISSUED
                                              -----------------------
                                               PREFERRED     COMMON
SHARE AMOUNTS                                   STOCK         STOCK
-------------                                 ----------   ----------
<S>                                            <C>         <C>       
BALANCE, DECEMBER 31, 1998                     2,549,750   16,622,447
Issuance of stock under Stock Purchase Plan         --           --
Issuance of stock under Stock Option Plan
                                                    --        104,957
                                              ----------   ----------
BALANCE, MARCH 31, 1999                        2,549,750   16,727,404
                                              ==========   ==========
</TABLE>


                                      -5-


<PAGE>   7

                     METRO NETWORKS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  (UNAUDITED)


1.       BASIS OF PRESENTATION

         The unaudited consolidated financial statements included herein have
         been prepared by Metro Networks, Inc. (the "Company") pursuant to the
         rules and regulations of the Securities and Exchange Commission.
         Certain information and footnote disclosures normally included in
         financial statements prepared in accordance with generally accepted
         accounting principles have been condensed or omitted pursuant to such
         rules and regulations. The information furnished in this report
         reflects all adjustments which, in the opinion of management, are
         necessary for a fair statement of the financial position, results of
         operations and cash flows as of and for the interim periods. Such
         adjustments consist of items of a normal recurring nature. The results
         of operations for the interim periods are not necessarily indicative
         of the results of operations expected for the full fiscal year or for
         any other future period. Certain reclassifications have been made to
         prior year amounts to conform to current year presentation. These
         financial statements should be read in conjunction with the financial
         statements and the notes thereto included in the Company's December
         31, 1998 Annual Report on Form 10K.

2.       RELATED PARTY TRANSACTIONS

         Prior to the October 1996 Public Offering, the Company entered into
         certain reciprocal arrangements with unrelated third parties as a
         result of which the Company received goods and services for the
         benefit of the controlling shareholder. The reciprocal arrangements
         obligate the Company to provide commercial airtime, provide other
         goods and services, and make cash disbursements to such third parties
         in exchange for the goods and services received by the Company. The
         dollar values of such arrangements have typically been calculated
         based upon the Company's estimate of the fair market value of the
         commercial airtime inventory involved on a basis similar to others in
         the broadcast industry. As of March 31, 1999, the Company was
         obligated to provide approximately $424,000 of commercial airtime,
         goods and services and cash under these reciprocal arrangements.


                                      -6-

<PAGE>   8



3.       EARNING PER COMMON SHARE

         The following is a reconciliation of the numerators and denominators
         of the basic and diluted computations for the three months ended March
         31, 1999 and 1998 (in thousands, except per share data).

<TABLE>
<CAPTION>

                                                                   FOR THE QUARTERS ENDED
                                                           -------------------------------------
                                                                         WEIGHTED
                                                                       AVERAGE SHARES  PER SHARE
                                                            INCOME      OUTSTANDING     AMOUNT
                                                           ----------  -------------- ----------
<S>                                                        <C>              <C>       <C>       
MARCH 31, 1999:
BASIC EPS
Income available to common stockholders                    $    1,675       16,684    $     0.10

EFFECT OF DILUTIVE SECURITIES
Options
                                                                 --            617          --
                                                           ----------   ----------    ----------
DILUTED EPS
Income available to stockholders plus assumed conversion   $    1,675       17,301    $     0.10
                                                           ==========   ==========    ==========


MARCH 31, 1998:
BASIC EPS
Income available to common stockholders                    $    1,453       16,587    $     0.09

EFFECT OF DILUTIVE SECURITIES
Options                                                          --            304          --
                                                           ----------   ----------    ----------
DILUTED EPS
Income available to stockholders plus assumed conversion   $    1,453       16,891    $     0.09
                                                           ==========   ==========    ==========
</TABLE>



                                      -7-

<PAGE>   9



                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
                   FOR THE THREE MONTHS ENDED MARCH 31, 1999



RESULTS OF OPERATIONS

         Revenues increased by $7.6 million to $42.0 million, or 22.1%, in the
first quarter of 1999. The increase in revenue is primarily due to increased
sales of commercial airtime inventory. Revenues from reciprocal agreements were
$2.2 million in the first quarter of 1999, compared to $2.1 million for the
same period of last year. As a percentage of total revenues, revenues from
reciprocal agreements decreased to 5.3% of total revenues in the first quarter
of 1999 compared to 6.2% for the same period last year.

         Total operating costs (broadcasting and marketing costs) increased by
$6.6 million to $33.6 million, or 24.3%, in the first quarter of 1999, when
compared to the same period last year. As a percentage of revenues, total
operating costs were 80.1% in the first quarter of 1999, compared to 78.6% for
the same period last year. The increase in costs are primarily due to the
Company's continued development of its Metro Source product, Expanded Radio
Services, Metro Television Services and various acquisitions which the Company
completed in 1998.

         General and administrative expenses increased $0.3 million to $3.0
million, or 11.5% in the first quarter of 1999 when compared to the same period
last year. As a percentage of revenues, general and administrative expenses
decreased to 7.2% in the first quarter of 1999, compared to 7.9% for the same
period last year.

         Earnings before interest income, interest expense, other, taxes,
depreciation and amortization (EBITDA) increased by $0.7 million, or 15.7%, to
$5.3 million in the first quarter compared to $4.6 million in first quarter of
1998. The increase in EBITDA was primarily attributable to continued revenue
growth. EBITDA as a percentage of revenue was 12.7% for the first quarter,
compared to 13.4% for the same period last year.

         The Company recorded first quarter 1999 net income of $1.7 million,
compared to $1.5 million in the first quarter of 1998, or an increase of 15.3%.
Diluted earnings per share for the three months ended March 31, 1999 were $.10,
an increase of $.01 over the prior year.


FINANCIAL CONDITION

         Cash and cash equivalents increased $4.1 million from $21.2 million to
$25.3 million for the three months ended March 31, 1999. Cash provided by
operating activities increased $1.2 million to $4.2 million for the three
months ended March 31, 1999, when compared to the same period last year,
primarily due to changes in operating assets and liabilities for the period.
Cash used for investing activities decreased by $1.9 million to $2.0 million
for the first three months of 1999 when compared to the same period last year,
primarily due to a decrease in acquisitions 

                                      -8-

<PAGE>   10

and capital purchases of property and equipment. Cash provided by financing
activities increased by $2.3 million due primarily to a reduction in long-term
debt repayments and the issuance of common stock.

         The maximum aggregate permitted borrowings under the Company's credit
agreement is $28.5 million. As of March 31, 1999, the Company had no debt
outstanding under the Credit Agreement.


YEAR 2000

      The "Year 2000 issue" is the result of computer programs that were
written using two digits rather than four to define the applicable year. If the
Company's computer programs with date-sensitive functions are not Year 2000
compliant, they may recognize a date using "00" as the year 1900 rather than
the Year 2000. This could result in a system failure or miscalculations causing
disruptions to operations.

STATE OF READINESS

      The Company has identified five major categories of Year 2000 risk:

         (1)      Software systems -- these include the Company's revenue
                  system ("Traffic System"), financial system (e.g. general
                  ledger, accounts payable, fixed assets, etc.) and other
                  business systems;

         (2)      Equipment with embedded chip technology -- these include
                  "on-air" equipment (e.g., audio servers, compression gear,
                  transmitters, etc.), computer hardware, transmission systems
                  and generators;

         (3)      External vendors and suppliers -- these include satellite
                  transmission operators and other third parties whose system
                  failures potentially could have a significant impact on the
                  Company's operations;

         (4)      Facilities -- these include fire alarm systems, phone systems
                  and access control systems; and

         (5)      Products and services the Company provides to customers.


      The Company's compliance objectives include products and services the
Company has provided to customers in the past and will provide to customers in
the future; all internal operating software systems and equipment; and the
services, products, equipment and systems the Company has obtained and will
obtain in the future from outside vendors. The Company's first objective was to
assess all products and services the Company has, or will provide, to
customers. This included informing customers of their need to make their
applications Year 2000 compliant to provide or accept associated files for
services provided by the Company. This objective was deemed the top priority
and was initiated in 1998. In early 1999, the Company 


                                      -9-

<PAGE>   11

initiated action to remediate, where needed, all internal business operation
support systems and the associated equipment it runs on. As part of this
process, the Company developed a standard Year 2000 compliance certification
memorandum to be sent to all vendors who have or are currently providing
products or services to the Company and instituted a review process for
formally responding to customer inquiries on the Company's Year 2000 compliance
plans and status.

      In 1999, the Company intends to replace its Traffic System with a system
that is Year 2000 compliant. Based on testing performed to date, the current
system has not revealed any Year 2000 issues. The Company replaced its
financial system with a Year 2000 compliant system in 1998. The implementation
of these new systems minimizes the possibility of Year 2000 issues
significantly interrupting normal operations.

      The Company has a formal program in place to receive assurances as to
Year 2000 compliance from identified external vendors and suppliers. The
Company intends to evaluate such vendors' and suppliers' compliance programs.

      The objective of the Company is complete assessment, remediation, testing
and certification of third-party software for all mission-critical systems and
components by October 31, 1999. Over the next few months as the Company
receives more information on the extent of Year 2000 compliance by external
vendors and third party suppliers, the nature of any contingency plans that may
be needed will evolve.

      The Company is currently preparing contingency plans to identify and
handle its worst case scenarios. It expects to complete the plans by June 30,
1999 in conjunction with the completion of its assessment, remediation, testing
and certification phases.

RISKS AND COSTS

      Based on its current efforts, the Company does not believe that Year 2000
issues will have a material adverse effect on the results of its operations,
liquidity, or financial condition. However, this assessment is dependent on the
ability of third-party suppliers and others whose systems failures potentially
could have an impact on the Company's operations to be Year 2000 compliant.
Although the Company cannot control the conduct of external vendors and
suppliers, the Company expects to reduce the Company's level of uncertainty and
the adverse effect that any such failures may have.

                                     -10-

<PAGE>   12



PART II.  OTHER INFORMATION

         Item 2.     Changes in Securities and Use of Proceeds

                  The Company filed a Registration Statement on Form S-1
         (Commission File NO. 333-6311) which was declared effective by the
         Securities and Exchange Commission on October 16, 1996.

                  The net offering proceeds of approximately $68,000,000 to the
         Company have been used as follows: $13,655,000 for the acquisition of
         other businesses, $6,536,000 for the purchase and installation of
         machinery and equipment, $29,811,0000 for the repayment of
         indebtedness, and $1,900,000 for working capital.



         Item 6.      Exhibits and Reports on Form 8-K

                      Exhibit
                        No.     
                      -------
                        27.1      Financial Data Schedule.

                                  No reports were filed on Form 8-K during the
                                  three-month period ended March 31, 1999.

                                     -11-

<PAGE>   13



                                   SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                                 METRO NETWORKS, INC.

                                                   (Registrant)


Dated:   May 12, 1999                    By: /S/  Timothy D. McMillin
                                             ------------------------------
                                                 Timothy D. McMillin
                                               Senior Vice President
                                              Chief Financial Officer

                                          (Principal Financial and Accounting
                                          Officer and Duly Authorized Officer)




<PAGE>   14
                                 EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit 
  No.
-------
<S>            <C>                                    
  27.1         Financial Data Schedule.

               No reports were filed on Form 8-K during the three-month period 
               ended March 31, 1999.
</TABLE>