Emmis F3Q07 (Qtr End 11/30/06) Earnings Call Transcript

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2007-01-09 11:58:10.0

Tags: Emmis Communications Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Victor Miller - Bear Stearns.

Victor Miller - Bear Stearns

Thanks. A couple questions, actually. Maybe I could talk to Rick about this. In New York, how much of the market weakness do you believe is Howard Stern leaving and the disruption that's caused versus category spending being down in the market versus migration?

In L.A., how is the market positioning going and what is your reaction to the repositioning of The Beat in that market? I'd like to ask a follow-up for Pat.

Rick Cummings

I think in New York, Vic, all of those things are factors. I couldn't tell you to what percentage or what degree the lack of the Howard Stern revenue contributes. That's something you'd have to ask CBS. But certainly that's a contribution, like many, many other things. I think part of the weakness in New York is that there is an attrition, clearly, of traditional sources of revenue. One of the things that we've identified as important is putting in stronger sales teams, stronger sales management, to go out and create new sources of business. That process started 90 days ago. We have a full new sales management line up in New York that we feel very good about. I think that's going to help us close the gap in New York between us and the market pacing over the next four or five months.

In Los Angeles, I assume when you say positioning I assume you're asking about the new station, which we feel pretty darn good about but we've only got really one big month, that's November. That is the first real look at what we have with Move It. In that month, 25-54 sat at 300,000 which is right up there with the last several months we turned in as a country station. Now, I think it's logical to assume that with that format, the minute we play the first record, the entire country audience was gone.

So we started at zero on August 17, so for us to have equaled KZLA within the first 45 days of the radio station in business, I think we feel pretty good about that. Now, it has to continue to grow. We hope that we'll see that when the next trend comes out, the fall book tomorrow. If that is the case, we may very well see this format equal KZLA's ratings in its very first book. That would, for us, be a terrific sign.

 

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