Emmis' radio net revenues for the first fiscal quarter were $38.7 million, down from $42.7 million in the prior year. Excluding KPWR in Los Angeles, Emmis' radio revenues per Miller Kaplan (which excludes barter and syndication revenues as well as radio stations in Terre Haute, Indiana sold in the prior fiscal year), were down 6.7% in markets that were down 1.4%. Emmis' Austin and St. Louis clusters outperformed their markets.
During the quarter, Emmis entered into an agreement to sell KPWR-FM in Los Angeles to an affiliate of the Meruelo Group for $82.75 million. The Local Marketing Agreement (LMA) for the station began July 1, 2017 and initial FCC approval of the license transfer to the Meruelo Group has been received. Closing is expected to occur in the next 30-60 days. Once the sale of Power 106 closes, the company's senior credit facility debt will be reduced by approximately 50%.
"Emmis made difficult but necessary decisions in our first fiscal quarter – decisions that give us additional flexibility to address market challenges and opportunities," Jeff Smulyan, CEO & Chairman of the Board of Emmis said.
"Our second fiscal quarter started strong with June up 5%, as record-setting ticket sales for our largest concert, Summer Jam in New York, provided a nice boost. While early, both July and August are showing that our performance is improving."
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