Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) is reporting fiscal first quarter net income of $2.7 million, up from $1.5 million during the same period the previous year. Chief Executive Officer Jeff Smulyan says he is optimistic increased ratings across the company’s radio stations will help to continue to drive revenue growth.
Operating revenue jumped 13 percent in the fiscal first quarter to $8.6 million. The company says the increase was mainly due to cost reductions implemented in January.
"Our New York radio stations had a stellar first quarter, growing revenues 11% and beating a healthy New York radio market that was up 4% in the quarter," said Smulyan. "I continue to be amazed and encouraged by the progress the radio industry is making with NextRadio, the radio industry’s initiative to make FM broadcast radio available on smartphones and tablets."
Emmis shareholders also approved Thursday a one-for-four reverse stock split as a means to regain compliance with the Nasdaq by trading above $1. Emmis risks delisting and says a reverse stock split is a "common remedy used by companies in this situation." The company says the move effectively merges shares of corporate stock into smaller, more valuable shares.