• by Erik Sass  @eriksass1, October 11, 2006

Emmis Communications, one of the nation's largest radio and television broadcasts, turned in strong second-quarter net income on Tuesday, driven by the sale of assets. The company's improved financial performance was due largely to its sale of TV stations, which have recently posted losses. In its second-quarter statement, Emmis said net income rose from 15 cents a share last year to $2.95 a share this year, for a total of $110 million.

Aside from this one-time boost, earnings for its regular operations are also up slightly at 5 cents a share, compared to 3 cents a share last year--although total revenue is down about 5 percent at just under $100 million. Emmis cited weak radio ad demand for the decline in revenue, saying it was particularly soft in New York and Los Angeles. Emmis Chairman and CEO Jeff Smulyan conceded: "Similar to our competitors, we continue to face challenges in our largest radio markets."

In issuing corporate guidance for the coming year, Emmis was cautious, saying it expects net radio revenue to decline slightly while expenses rise. But Smulyan also said he thinks radio ad demand is beginning to turn around, partly on the basis of new measurements of audience reach. Emmis also has two TV stations remaining to sell out of its original 16, which may streamline costs further.