WBLS/WLIB Impacts Emmis’ Second Quarter

Emmis Communications Corporation announced results for its second fiscal quarter ending August 31, 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 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. 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’ Radio 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 holding the top spot in LA with both 18-34 and 18-49 audiences,” Jeff Smulyan, President & CEO of Emmis said. “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.”