Emmis Communications Corporation (NASDAQ: EMMS) reported a slight uptick in revenues in F1Q2017 compared to a year-ago quarter. But the management said that revenue would have grown stronger in the quarter had it not been for intense competition in the Los Angeles market. Nevertheless, robust growth in radio revenue in New York market generated a major boost to the overall financial results in the just reported quarter.
For F1Q2016, Emmis Communications Corporation (NASDAQ: EMMS) generated total revenue of $56 million, which was down 4.2% YoY. EPS came in at $0.06. Muted growth in radio revenue and a decline in publishing revenue contributed the drop in YoY topline metric.
What happened to radio revenue?
You find that Emmis’ net radio revenue only rose fractionally to $42.7 million from $42.6 million. But the management said that radio revenue growth in the latest quarter would have been stronger had it not been for the competitive pressures the company is experiencing in the Los Angeles market. As such, excluding Los Angeles, radio revenue rose 5% YoY. That was faster than the 3% growth of radio revenues in the markets served by Emmis if you don’t; consider Los Angeles.
What about publishing revenue?
Emmis Communications Corporation (NASDAQ: EMMS)’s publishing revenue fell 16% to $13.1 million compared to $15.5 million a year earlier. The management explained that the decline in publishing revenue was not all caused by tough market conditions, but also timing of certain custom publishing works.
Emmis Communications Corporation (NASDAQ: EMMS) finished F1Q2017 with $8.6 million in operating income, which increased 13% over the year-ago quarter. The improvement in operating income was credited to cost-cutting measures that EMMS began implementing in January 2016.
New York turns out be the bright spot
New York was the bright spot radio market for Emmis in F1Q2017. Radio revenue in the market rose 11%, handily beating the radio market growth of 4% in the state in the quarter.
Digital business – Emmis Communications Corporation (NASDAQ: EMMS)
According to Emmis Communications Corporation (NASDAQ: EMMS), digital was its strongest line of business in the latest quarter with revenue from the segment up 35% YoY. Emmis is also hoping to benefit from the efforts to include FM radio in smartphones and tablets.