Thursday Emmis Communications reported earning for three months that ended August 31st. Results were flat compared to the same three months in 2010. Radio revenue for June, July and August of 2011 was slightly over $50 million. In 2010 radio revenue was $51,500. Emmis CEO Jeff Smulyan said "we are working against the background of a very tough economy but I'm upbeat." After the call, Smulyan sent out the following e-mail to his employees.
This morning we announced financial results for Emmis' second quarter (June-July-August). I wanted to share the details with you. The news is encouraging. August was the best month in nearly a year for our Radio Division - we were up a whopping 10% over the same month from last year. For the second quarter, Emmis' domestic revenues (excluding the Merlin properties) were up 4% over the same period from last year. Perhaps most impressively, our stations are beating their in-market competitors for advertising dollars: our stations have outperformed their markets in 9 of the last 12 months.
While Publishing revenues were down 4% during the quarter, things are on the upswing. The third quarter looks much stronger for our city/regional/specialty magazines division.
On Sept. 1, we closed the Merlin transaction, which sent our two Chicago radio stations and WRXP in New York to Merlin, and reduced the company's debt by 38%. Our financial condition is the best it has been in three years. For the first time in a long time - we are ready to play offense.
Emmis continues to be the epicenter of innovation in the radio industry. Whether it is the recently unveiled HD radio smartphone app, the Broadcaster's Traffic Consortium, our social impact marketing firm Incite, the launch of Hot97 and Power106 content as part of Facebook's music launch, or the formation of the Loud Digital Network, just to name a few, all of these were created within Emmis. While we may not be the largest operator in our markets, we are undoubtedly the most innovative.
So why does the stock price not reflect this positive news? I know that is a widespread source of frustration. I learned long ago that Wall Street doesn't always make sense. If we continue to execute, we believe this challenge will cure itself. We have at least until February 2012 to get the stock price above $1.
Despite the upbeat news, our markets remain choppy and the general economy remains shaky, so we must be diligent. I know the road has been a long one, but together we will get to the other side of this mountain. All you do everyday is helping us get there. For that, I thank you.
Best,
Jeff
(10/13/2011 3:02:28 PM)
Hey Jeff - how much did you really piss away on the HD Radio lead-balloon?
Add a Comment | View All Comments Send This Story To A Friend
