Emmis Radio's Financial Woes Worsen


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Posted by chicagomedia.org on April 14, 2009 at 07:25:04:

Emmis Radio Revenues Fall In Fiscal Q4

INDIANAPOLIS -- April 13, 2009: Emmis Communications brought in $38.7 million in domestic radio revenues in its fiscal fourth quarter, which ended February 28. That was down 20.7 percent from $48.8 million in the same period a year before. International radio revenues came in at $12.5 million, down 6 percent from $13.3 million, and on the publishing side, Emmis brought in $17.4 million, a 25.3 percent decline from $23.3 million.

Emmis' total net revenues in Q4 were $68.5 million -- a 19.8 percent drop from $85.4 million. Emmis took a restructuring charge of $4.2 million in Q4 related to workforce reductions, and a $163.2 million noncash impairment charge related to broadcasting licenses and goodwill.

For the full fiscal year, Emmis' domestic radio revenues were $202.9 million, down 9.8 percent from $225 million. International radio revenues were up on the year, rising 16.8 percent to $48 million from $41.1 million. Publishing revenues fell 9.8 on the year, to $83 million from $92 million. Total net revenues for the year were $333.9 million, down 6.8 percent from $358.1 million.

Emmis said in its SEC filing, "The advertising environment remains incredibly challenging, particularly for traditional media like radio broadcasting and publishing." Domestic radio revenues for March were down 26 percent compared to March a year before, the company said, with April revenues pacing down 32 percent and May pacing down 37 percent.

On April 10, Emmis borrowed $71.2 million under its existing facility, using up the whole $75 million available under the revolving credit loan. The company has hired Blackstone Advisory Services as its financial adviser as it looks into a possible amendment to the credit facility or restructuring of liabilities.

(Radio Ink)


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