In recent years, the music industry has undergone rapid transformation, and Emmis Communications Corporation has been at the forefront of these changes. This blog post delves into their journey and their remarkable financial performance in the past couple of years. Despite facing challenges in the summer months, Emmis has consistently delivered impressive revenue share gains. Moreover, their radio ratings have significantly outperformed, with Power 106 securing the top spot in LA for both 18-34 and 18-49 audiences. Emmis continues to innovate in the broadcasting industry with their NextRadio initiative, which aims to make FM broadcast radio available on smartphones and tablets.
Emmis Communications Corporation’s Financial Performance
Emmis Communications Corporation announced its second fiscal quarter results for the period ending August 31, 2014. The radio net revenues were up 15%, from $41.2 million to $47.6 million. This includes reported revenue from New York’s WBLS 107.5 FM and WLIB 1190 AM, which Emmis began operating pursuant to a Local Marketing Agreement (“LMA”) on March 1, 2014.
Comparative Revenue Analysis
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.
Future Revenue Projections
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.
Operating Income
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.
CEO’s Remarks
“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,” said Jeff Smulyan, President & CEO of Emmis. “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.”
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