Emmis to Split Radio, TV

Emmis to Split Radio, TV
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Emmis Communications Corporation is separating its radio and TV businesses as well as exploring a taxable spin off of its TV division.
The radio group released information for its investors covering the next three quarters ending Aug. 31, 2001, Nov. 30, and Feb. 28, 2002.
Emmis’ pro forma estimated second quarter radio net revenue will be down by 4 to 6 % while radio broadcast cash flow is expected to fall 9 to 11 %. TV net revenue will be down 6 to 8 percent, and TV broadcast cash flow is expected to drop 11 to 13 %.
The decreases are attributed to the downturn in the economy that has eroded advertising sales in major markets. The company also spent more funds on radio station promotion and maintaining its sales force.

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