Emmis Broadcasting CEO Jeff Smulyan: business turns ‘challenging.’

Story by Inside Radio

“There’s no getting around that it was a tough quarter,” Emmis CEO Jeff Smulyan told investors yesterday, providing some of the first hard data on the second quarter. But he also said he sees reasons to be hopeful about second half of the year.

Emmis pro forma revenue for the fiscal quarter ending May 31 was flat compared to a year ago. But with Miller Kaplan reporting revenue in those markets was down by more than 5%, Smulyan said that was reason enough to be happy. “This is a challenging time,” he said during a conference call with analysts. “On the other hand, there is some good news on the horizon.” That includes the impending flow of political advertising, as well as an improving economy where retail sales are rising and unemployment rates are on the decline.

COO/CFO Pat Walsh said Emmis sold 1% fewer minutes of advertising during the quarter, but average rates were up 2%. While automotive and health care spending grew, wireless was a “drag” Walsh said, adding, “This category has showed very, very strong growth the past several years but took a step back during the first quarter.”

Overall Emmis revenue did climb to $45 million during the quarter as it fully absorbed urban AC WBLS (107.5) and gospel WLIB (1190) in New York. Smulyan said that market has faced challenges with revenue slipping during the quarter, but he believes it’s been a “very smooth transition” nevertheless. One challenge going forward will be a new competitor as Cumulus Media this week launched an urban AC rival to WBLS with urban AC “Radio 103.9” WNBM.