Emmis Reports Net Revenue Down 3.3 Percent

Emmis Communications Corporation today announced results for its second fiscal quarter, ending August 31, 2016.

Emmis' radio net revenues for the second fiscal quarter were down 3.3%, from $47.6 million to $46.0 million. Per Miller Kaplan reporting, which excludes barter and syndication revenues, Emmis radio revenues were down 3.8% in markets up 1%.

For the second fiscal quarter, operating income declined to $4.9 million from $9.9 million in the same quarter of the prior year, partially due to a $3.0 million noncash impairment charge related to Digonex intangibles.

Publishing net revenues were down 13.5% in the second fiscal quarter, from $14.6 million to $12.6 million.

Jeff Smulyan

On August 18, the Company announced that it was exploring strategic alternatives for its publishing division, excluding Indianapolis Monthly magazine.  The Company also announced it was exploring strategic alternatives for its Terre Haute radio stations and WLIB-AM in New York.

"Across the board, this was a difficult quarter," said Jeff Smulyan, Chairman & CEO of Emmis. "Third quarter radio revenues are currently pacing flat to the prior year.  We are hopeful that we will see political advertising tailwinds strengthen as we move through October.  We are increasing marketing spend at some of our largest brands to boost ratings and to give us a competitive advantage."

"NextRadio continues to make progress on multiple fronts," Smulyan continued. "NextRadio-compatible Samsung Galaxy S7, S7 Edge and Note 7 smartphones are now available across all carriers, and an industry marketing campaign has begun to promote this to consumers.  NextRadio continues to grow its geographic footprint and is now available in Mexico, Canada and Peru.

"Lastly, there is marked and deserved interest in our magazines, and while it is early in the process, I'm optimistic about the reaction to these marquee brands," Smulyan concluded.