Thursday, May 5, 2016

Emmis Reports L-A Puts Drag On Earnings

Emmis Communications Corporation today announced results for its fourth fiscal quarter and full-year ending February 29, 2016.

Emmis' radio net revenues for the fourth fiscal quarter were $36.4 million, down from $38.8 million from the prior year, a decrease of 6%. Per Miller Kaplan reporting, which excludes barter revenues and syndication revenues, and excluding LMA fee revenue in New York, Emmis' fourth quarter radio revenues were down 7.3% compared to local radio market revenues up 0.7%.  For the full year, radio revenues were $169.2 million, compared to $176.3 million in the prior year, a decrease of 4%.   Per Miller Kaplan reporting, and excluding LMA fee revenue in New York, Emmis' fiscal 2016 radio revenues were down 4.6% compared to local radio market revenues down 1.5%.  Our Indianapolis and St. Louis clusters grew market share in the three-month and full-year periods.

Publishing revenues were down 2% in the fourth quarter and down slightly year over year.

Jeff Smulyan
Emmis announced a series of cost reductions in January, which were implemented during the company's fourth quarter, to better align resources with growth initiatives.

"Emmis' fourth quarter was weak, mostly due to expected underperformance in Los Angeles," Jeff Smulyan, President & CEO of Emmis said. "The good news is our first quarter is much improved and currently pacing flat to the prior year.  New York's performance has been stellar, ratings in LA have begun to grow again, and ratings across our other radio markets are very strong."

"NextRadio is coming off a fantastic National Association of Broadcaster convention, and momentum is building," Smulyan continued. "At NAB, it was announced that PRSS, the distribution network for public radio, is being integrated into NextRadio.  Carrier and handset conversations are robust, and advertiser interest is high.  In addition, we will launch in our first international market, Peru, in the coming weeks. I couldn't be more pleased with the efforts of Paul Brenner and his team in bringing NextRadio to our industry and to listeners everywhere."

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