Emmis Q3 Revs Down, Yet Makes A Profit
January 8, 2010 at 1:53 PM (PT)
EMMIS COMMUNICATIONS saw more revenue declines both in the three months ended Nov. 30th and in the year-to-date of '09. Quarterly revenue was $64.6 million, down 18% from the same period a year earlier. Revenue for the first nine months of the fiscal year 2009 was down 23% from a year ago, to $188.6 million.
The light at the end of the tunnel may be the fact that EMMIS actually made a $1.7 million profit this quarter compared to a $125.7 million loss during Q3 '08. The loss last year was due primarily to a $210.2 million impairment loss related to the FCC licenses during the third quarter.
The INDIANAPOLIS BUSINESS JOURNAL reports on a letter CEO JEFF SMULYAN sent to employees that offered reasons for optimism. "If there’s a general theme to our results, it’s that things continue to head in the right direction," he wrote. "We continue to see sequential improvements in EMMIS’ domestic radio results and our advances accelerated during the recent holiday season."
He touted the growth potential of stations in NEW YORK, LOS ANGELES and AUSTIN, as well as "strategy initiatives in [EMMIS’] Publishing Division ... These steps should help us in the future as our business rebounds," SMULYAN added. No matter how much things head in the right direction, it’s clear we aren't out of the woods yet. The economy is better, but it's certainly not on solid footing yet. Advertisers are starting to open up their checkbooks, but they're not ready to return to pre-recession spending levels."