IBJNews

Emmis finds silver lining despite deep losses in 2Q

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Emmis Communications Corp. announced Thursday that revenue in its second fiscal quarter slipped from last year and losses nearly quadrupled, but company officials said there was reason for optimism.

The company lost $8.6 million on revenue of $64.6 million for the quarter ended Aug. 31, compared to a loss of $2.3 million on revenue of $66.7 million for the same period a year ago.

For the first six months of its fiscal year, Emmis lost $13.1 million on revenue of $125.8 million, compared to a loss of $6.3 million on revenue of $126.9 million during the same period in 2010.

But Emmis Chairman Jeff Smulyan said the sale of majority interest in two Chicago radio stations and one in New York to Chicago-based Merlin Media brightens Emmis’ future.

Because the sale of WLUP and WKQX in Chicago and New York’s WRXP didn’t close until Sept. 1, it is not reflected in Emmis’ most recent earnings statement.

In a conference call with analysts Thursday, Emmis officials explained that the three stations were not profitable and that selling them would bring in $120 million to be used to pay down 38 percent of the company’s debt and eliminate $10 million in annual interest payments.

Emmis retained a 21-percent common equity interest in Merlin, which Smulyan said “has significant value.”

“We have really taken this company and solved its major structural problems,” Smulyan said. “We’re not totally done yet, … but I couldn’t be more pleased.”

Emmis officials pointed out that excluding the three sold stations, the company's radio advertising for the first six months of this year is up 4 percent over the same period last year. That compares favorably to all other stations in Emmis markets, which were up 2 percent.

“Our stations are beating their in-market competitors for advertising dollars,” Smulyan said. “Our stations have outperformed their markets in nine of the last 12 months.”

Emmis’ Indianapolis radio cluster was its strongest performer, up 21 percent in the first six months of this year compared to the same period in 2010. All other Indianapolis radio stations were up 4 percent, according to Emmis. Emmis officials also said its Los Angeles cluster is doing well.

Emmis owns 17 FM and two AM radio stations nationwide and seven city and specialty magazines. Locally, Emmis owns WFNI-AM 1070, WIBC-FM 93.1, WLHK-FM 97.1 and WYXB-FM 105.7, as well as Indianapolis Monthly magazine.

Overall, Emmis second-quarter radio advertising revenue for beverage, wireless, health care and movie sectors was up at least 10 percent, said Pat Walsh, Emmis’ chief financial officer. Automotive advertising—Emmis’ biggest revenue generator—was up 7 percent. Restaurant and media advertising on Emmis radio stations was also up single-digit percentages, while advertising in the entertainment, financial and home improvement sectors declined.

Emmis publishing revenue was down 4 percent, but Walsh projected a rebound during the third quarter, which is typically a big quarter for the type of city magazines the company publishes.

“This company is winning despite a tough economy,” Smulyan said.

There are other reasons for optimism, Smulyan said. They include a new smart phone app the company released this month with the National Association of Broadcasters, a customer relationship management system which should help improve the company’s sales processes, and the growth of Emmis’ Broadcast Traffic Consortium, which now has 25 participating radio stations.

Despite what Smulyan calls a good quarter, Wall Street has not been kind to the company. Emmis stock traded at 66 cents per share shortly after noon on Thursday, and the company has continually faced the risk this year of being delisted from NASDAQ for remaining under $1 for too long. Emmis has until February to get its stock price up before being delisted.

“I learned long ago that Wall Street doesn’t always make sense,” Smulyan said. “If we continue to execute, we believe this challenge will cure itself.”

ADVERTISEMENT

  • Austin Market
    Emmis has some really great talent, such as the Dudley and Bob show and KLBJ in Austin. They should syndicate these shows.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT