Emmis Third-Quarter Revenues Fall 5.1%, Company-wide Layoffs Made
January 7, 2016 at 6:31 AM (PT)
EMMIS COMMUNICATIONS CORP. third-fiscal-quarter revenues fell 5.1% to $59.164 million, with radio off 5.2% to $42.634 million, blamed primarily on a decline at Top 40/Rhythmic KPWR (POWER 106)/LOS ANGELES comprising "substantially all of our radio division's shortfall against its markets" due to the launch of format rival KRRL (REAL 92.3) by iHEARTMEDIA, offsetting better performance against their markets by the INDIANAPOLIS, ST. LOUIS, and AUSTIN clusters.
The company also announced that it had cut an undisclosed number of employees and chopped the pay of all senior executives.
"Radio industry growth has been disappointing in 2015," said CEO JEFF SMULYAN. "Our markets are down 2.4% through the first 11 months of 2015. This general decline, coupled with the competitive situation in LOS ANGELES, led us to take a series of steps yesterday, including staff reductions and pay cuts for senior executives, to restructure our expenses to better align them with the current operating environment. We remain confident that we have the best team in media and the solution, in NEXTRADIO, to return the radio industry to growth. Our ratings are quite strong in most of our markets, and our investments in content, sales hiring and training, and NEXTRADIO and DIGONEX will begin to yield stronger results in 2016."
Publishing revenues fell 7% to $16.658 million. Net income attributable to the company doubled to $5.548 million (6 to 12 cents per diluted share).