SBS Q1 Net Revenues Down 3%, Radio Falls 5% to $32.5M

RADIO ONLINE | Monday, July 6, 2020 | 6:40pm CT

Spanish Broadcasting System

Spanish Broadcasting System (SBS) reported first quarter consolidated net revenue fell 3% to $36.3 million as compared to $37.4 million in 2019. Net revenue for its radio segment decreased 5% to $32.5 million from $34 million due to decreases in local, special events revenue and barter sales which were partially offset by increases in national, digital and network sales. Additionally, local radio segment revenue includes the negative impact of ad related spot cancellations due to the COVID-19 pandemic.

Consolidated Adjusted OIBDA declined 9% to $7.5 million from $8.3 million. Radio Adjusted OIBDA was down 6%, primarily due to the decrease in net revenue of $1.5 million partially offset by a decrease in operating expenses of 4%. Radio operating expenses fell mainly due to decreases in advertising, barter and special events expenses which were partially offset by increases in national rep commissions and taxes and licenses costs.

Operating loss totaled $5.9 million compared to operating income of $5.6 million for the same prior year period, representing a decrease of approximately $11.5 million. This dip in operating income was primarily due to the impairment charges partially offset by gain from the sale of assets.

"While our first quarter results were significantly impacted by the COVID-19 pandemic, we continued to make operational and strategic progress," commented Chairman/CEO Raul Alarcon. "Our audio stations held the top rankings across key demos in the New York, Los Angeles and Chicago markets according to Nielsen Audio's May 2020 PPM Report. This strong showing, together with our expanding digital and social media metrics, drove notable aggregate audience growth in the quarter."

He added, "We've taken significant steps to safeguard our personnel while also aligning our cost structure with current market conditions. In addition, as a leading Spanish-language multi-media company and certified minority business enterprise, we have placed total emphasis on helping Latino communities navigate what has proven to be one of the most difficult periods of their lives. We cherish our audience and understand they know and trust our brands and have strong connections with our innovative formats, on-air content and leading talent."