Emmis Q2 Radio Net Revenues Up 15% With Addition Of WBLS And WLIB-A

Jeff Smulyan

EMMIS COMMUNICATIONS has released results for its second fiscal quarter ending AUGUST 31st, 2014.

EMMIS' radio net revenues for the second fiscal quarter were up 15%, from $41.2 million to $47.6 million. This includes reported revenue from WBLS and WLIB-A/NEW YORK, which EMMIS began operating pursuant to a Local Marketing Agreement ("LMA") on MARCH 1st, 2014. The company noted, "on a pro forma basis, assuming results for WBLS and WLIB were included in the same quarter of the prior year and consistent with MILLER KAPLAN reporting, which excludes barter revenues and syndication revenues, EMMIS' radio net revenues would have been down 1.7%.  This compares favorably to our local radio market revenues, which were down 5.1% during the fiscal quarter on the same basis." 

Consistent with MILLER KAPLAN reporting, which excludes barter revenues and syndication revenues, EMMIS' pro forma radio net revenues are pacing up mid to high single digits for its third fiscal quarter.

Publishing net revenues were up 3% in the second fiscal quarter, driven by higher advertising rates and an increase in custom publishing business.

For the second fiscal quarter, operating income was $12.5 million, compared to $5.7 million for the same quarter of the prior year.  EMMIS' station operating income for the second fiscal quarter was $15.2 million, compared to $14.2 million for the same quarter of the prior year.

"While the SUMMER months were challenging for the radio industry, our employees once again delivered revenue share gains.  In addition, our most recent ratings significantly outperformed during SEPTEMBER, highlighted by POWER 106 [KPWR/LOS ANGELES] holding the top spot in L.A. with both 18-34 and 18-49 audiences," said Pres./CEO JEFF SMULYAN.  "Pacings have improved, looking much stronger for the FALL than the SUMMER. Momentum is continuing to build for NEXTRADIO, the EMMIS-led industry initiative to make FM broadcast radio available on smartphones and tablets, as we approach 1 million downloads. Average time spent listening per NEXTRADIO session is 50% higher than the radio broadcasting industry average, and  as we have gained significant broadcaster involvement and increased listener satisfaction, we are seeing increased interest from other carriers, handset makers and automakers."

In the company's 10-K filing with the SEC, EMMIS noted that former WLIB talk host BOB LAW, NEW YORK City Councilman CHARLES BARRON, COMMITTEE TO ELIMINATE MEDIA OFFENSIVE TO AFRICAN PEOPLE (CEMOTAP) member BETTY DOPSON, and MICHAEL D. NORTH filed an appeal of the denial of their complaint seeking to overturn the FCC's approval of the previous WBLS and WLIB sale by INNER CITY BROADCASTING's URBAN RADIO I, LLC to YMF MEDIA.  EMMIS said, " Based upon the facts alleged in the Notice of Appeal and the extensive precedent of courts not overturning FCC approvals of transfers of broadcast licenses except in exceedingly rare circumstances, EMMIS believes the appeal is without merit."  Also noted were pending challenges to the transfer of WLIB and WBLS to EMMIS, but the company "does not expect the challenges to result in the denial of any license renewals or the revocation of the WBLS-FM and WLIB-AM transfers," the filing stated.

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