Emmis Q3 Revenues Fall
January 9, 2007 at 6:13 AM (PT)
EMMIS COMMUNICATIONS' fiscal third-quarter revenue dropped 6.9% to $91.2 million, blamed on drops at the company's NEW YORK and LOS ANGELES radio stations. Radio revenue fell 9.2%, with publishing revenues flat. Operating income fell 28.4% to $17.5 million, and station operating income dropped 18.1% to $30.2 million. Diluted net loss per common share from continuing operations widened from 1 to 9 cents. The company recorded a charge of $10 million in the quarter for debt extinguishment and refinancing.
"While we have been disappointed with the continued softness in our NEW YORK and LOS ANGELES markets," said Chairman/CEO JEFF SMULYAN in a press release, "we are beginning to see signs that the worst is behind us. I'm confident that programming and management actions taken in recent months are beginning to deliver and point to better results in 2007."
On the company's conference call this morning, SMULYAN commented on new media's effect on traditional radio by saying, "We've suffered from satellite and iPOD cache. Traditionally, new formats like 8-track, cassette and CD spike, but listeners come back. I think we've suffered more from the perception of decline than decline itself."
The company expects pro forma radio net revenues to fall low- to mid-single digits and station operating expenses to rise in low-single digits for fiscal fourth quarter.