Emmis Q3 Revs Down, Primarily Due To NY And LA
January 9, 2008 at 5:30 AM (PT)
EMMIS COMMUNICATIONS CORPORATION has announced results for its third fiscal quarter ended NOVEMBER 30th, 2007. "Along with everyone in the radio business, we face unprecedented challenges, particularly in our largest radio markets," EMMIS Chairman/CEO JEFF SMULYAN said. "However, in the third quarter we closed the gap between our performance and that of our markets. Excluding KMVN/LOS ANGELES, we actually outperformed our markets. Coupled with a continued strong showing in our international stations and publishing operations, I'm hopeful about the new year."
For the third fiscal quarter, net revenue was $91.7 million, compared to $91.2 million for the same quarter of the prior year. Diluted net loss per common share from continuing operations was ($0.22), compared to ($0.09) for the same quarter of the prior year.
For the third quarter, radio net revenues decreased 3.2%, while pro forma publishing net revenues were up 4.6%. Domestic radio net revenues decreased 7.0% during the quarter, primarily as a result of continuing weakness in the Company's NEW YORK and LOS ANGELES clusters.
On OCTOBER 1st, 2007, EMMIS terminated its existing national sales representation agreement with INTEREP NATIONAL RADIO SALES and entered into a new agreement with KATZ COMMUNICATIONS extending through MARCH 2018 (NET NEWS 10/1).
For the third quarter, operating income was $2.0 million, compared to $17.6 million for the same quarter of the prior year. The decrease is attributable principally to a one-time contract termination fee associated with the Company's change in national representative firms. The termination fee was paid by our new national representation firm and was a non-cash charge for EMMIS. EMMIS' station operating income for the third quarter was $26.2 million, compared to $30.2 million for the same quarter of the prior year.