Emmis Communications Corporation (NASDAQ: EMMS) announced results for its first fiscal quarter ending May 31, 2016.
Emmis’ radio net revenues for the first fiscal quarter were up fractionally, from $42.6 million to $42.7 million. Excluding the company’s radio station in Los Angeles, which is being negatively affected by a recent format competitor, Emmis’ radio net revenues would have been up 5% in the quarter. Per Miller Kaplan reporting, radio revenues in Emmis’ markets were up 3% in the quarter with and without Los Angeles.
For the first fiscal quarter, operating income was up 13%, from $7.6 million to $8.6 million, primarily due to cost reductions the company implemented in January 2016.
Publishing net revenues were down 16% in the first fiscal quarter, from $15.5 million to $13.1 million, partially due to the timing of certain custom publications that ran in the first quarter of the prior fiscal year, but will run later in the current fiscal year.
“Our New York radio stations had a stellar first quarter, growing revenues 11% and beating a healthy New York radio market that was up 4% in the quarter,” said Jeff Smulyan, Chairman & CEO of Emmis. “Compared to last year, Emmis’ ratings are up across our portfolio, and we are optimistic this will help drive revenue growth in the second half of the fiscal year.”
“I continue to be amazed and encouraged by the progress the radio industry is making with NextRadio®, the radio industry’s initiative to make FM broadcast radio available on smartphones and tablets,” Smulyan continued. “The Samsung Galaxy S7 and S7 Edge will soon be NextRadio compatible across all major wireless carriers in the United States, and with the support of handset makers BLU, Alcatel, and others, we have launched NextRadio in Canada and Peru.”
A conference call regarding earnings will be hosted today at 9 a.m. Eastern by dialing 1-517-623-4891. Questions may be submitted via email to ir@emmis.com. A replay of the call will be available until 6 p.m. on Thursday, July 21 by dialing 203-369-0514.
Emmis will host its Annual Shareholders’ Meeting today at 10 am at Emmis Headquarters on Monument Circle in Indianapolis. The previously announced one-for-four reverse stock split is expected to be approved, and the first day of trading that reflects the reverse stock split is expected to be Friday, July 8th.