Spanish Broadcasting Q3 Net Revs Down 2% to $34.3 Million

RADIO ONLINE | Friday, November 29, 2024

Spanish Broadcasting System (SBS)

Spanish Broadcasting System (SBS) reported significant improvements in profitability and operational efficiency despite a slight decline in revenue for the third quarter 2024. Net revenue totaled $34.3 million, a 2% decrease from $35 million in the same period last year. This drop was primarily attributed to reductions in national and barter sales, which were partially offset by increases in local and network sales.

Station Operating Income (SOI) rose by 21% to $12.1 million, largely driven by reductions in operational expenses. Adjusted OIBDA saw an even more impressive gain of 50%, reaching $10 million as corporate and operational expenses continued to decline. Operating expenses were reduced by 11% to $22.2 million, reflecting savings in compensation, advertising, promotions and travel costs. SBS also reported net income of $547,000 for the quarter, a significant turnaround from the $32.5 million loss reported in the same period in 2023.

CEO Raul Alarcon credited these results to ongoing operational initiatives and strategic investments. The company has implemented cost reduction measures across all its business units and is focused on expanding its programming and market reach. Among the new initiatives is the launch of "La Privada," a Mexican/Urbano fusion network, as well as the introduction of new programming and talent in key markets such as Puerto Rico, Orlando, Tampa and Houston. The Houston market, home to SBS's soon-to-launch FM station, is expected to drive additional revenue through live events and network affiliations.

SBS continues to pursue a dual on-air and digital strategy, leveraging its local content production and its DAVid Initiative to transform the LaMusica platform into a leading digital hub for Hispanic audio and video entertainment. According to Alarcon, this approach aligns with studies showing high engagement rates among Hispanic audiences for radio, podcasts, and digital streaming.

The company also addressed its discontinued television segment, MegaTV, which remains classified as held for sale following a terminated agreement with Voz Media. SBS is actively seeking new buyers for the television and related real estate assets.