The parent company of Los Angeles Magazine, and L.A. radio stations KPWR-FM (105.9) and KXOS-FM (93.9) is trying to hold on to its ticker.
Indianapolis radio and publishing conglomerate Emmis Communications was warned by Nasdaq last month that its stock is in danger of being delisted from the exchange, the company disclosed in a recent regulatory filing. For months, shares, which list under the ticker “EMMS,” have failed to meet the exchange’s minimum price requirement of $1; shares closed at 71 cents March 8.
Mark Foster, chief investment officer of Columbus, Ind.-based Kirr Marbach & Co., said investors have lost faith in the company in recent years as new media and the tough economy have eroded radio and magazine advertising, which jointly account for 70 percent of Emmis’ revenue.
“It’s just a hard business these days,” Foster said.
Emmis’ radio revenue declined 17 percent to $40 million for the quarter ended Nov. 30. Though the company owns 23 stations in the United States and a few abroad, some of the revenue decline can be seen at KPWR.
Known locally as Power 106, the station’s revenue declined 4.1 percent for the quarter, compared with the same period in 2010, though Emmis didn’t break out specific dollar figures. The L.A. radio market contracted 3.8 percent for the quarter, according to the regulatory filing.
Like many of its stations, hip-hop KPWR caters to an 18-34 demographic, which the company noted as a particularly weak segment in advertising for the quarter, in part due to “a significant drop in movie advertising.”
Emmis’ other L.A. station, Spanish-language KXOS, is operated by Mexico City broadcasting company Grupo Radio Centro SAB de CV. Grupo Radio Centro pays Emmis $7 million per year to operate the station as part of an up to seven-year agreement dating from 2009 that gives the Mexican company all ad revenue.
Despite challenges in radio, Emmis did manage to grow revenue on the publishing side 6 percent to $19.5 million last quarter. In addition to Los Angeles Magazine, the company owns eight magazines across the country including Newport Beach magazine Orange Coast. Los Angeles Magazine has been supplementing print ad revenue by hosting events and pushing its digital products.
After the warning from Nasdaq last month, Emmis has asked for a hearing to stay listed on the exchange.
Breaking In
After a summer internship spent assembling Ikea furniture at a production company in New York, Sharah Senderoff decided to create a better way for college students to find meaningful work in the entertainment industry.
Her Santa Monica startup, Intern Sushi, allows applicants to submit video clips instead of ink and paper resumes in the hopes that by showing off what they can do creatively, interns will score a summer post that might provide more relevant experience than putting up bookshelves.
Launched this year, the site has signed up close to 10,000 aspiring interns who are trying to break into fields including film and TV, advertising, sports and publishing.
“A big part of who we are is focusing on the hard to break into industries,” Senderoff said.
The site charges subscribers an $8.99 monthly fee or $79.99 for a year, though many of the current users have signed up for free trials.
But investors, including “Saving Private Ryan” producer Mark Gordon, think there’s big money to be made. Gordon came on board after Senderoff pitched him the idea last year while she was a vice president of interactive and new media at his production company, where she started as an intern in 2007.
Gordon liked the idea and encouraged Senderoff to pursue the project. After a few months of keeping her day job and working on the site with web developers on the side, she decided to commit herself fully to Intern Sushi.
The company, which now has 19 employees, raised $850,000 in its first round of investment that included other entertainment industry executives, as well as those in sports and other industries; Senderoff did not disclose names.
A company spokeswoman said the site has facilitated 50 internships.
You’re Hired
Beverly Hills social TV company Actv8.Me last week announced that it will be making a special app for NBC’s “Celebrity Apprentice.”
The company specializes in creating interactive features for tablets and smartphones synched with TV programs.
The app was made available for use with the episode scheduled for March 11.
Along with content-based interactive features such as social games and discussions, the app, available for iPhones and iPads and soon for Android devices, has a feature called ActvAD. It rewards viewers for watching on-air commercials from brands such as Buick, Crystal Light and Walgreens.
Staff reporter Jonathan Polakoff can be reached at [email protected] or at (323) 549-5225, ext. 226.
