SBS Returns to 2024 Profitability Despite Concern Warning

RADIO ONLINE | Friday, May 2, 2025 | 5:03pm CT

Spanish Broadcasting System

Spanish Broadcasting System posted a net income of $1.66 million for the year ended December 31, 2024, rebounding from a net loss of $40.7 million in 2023. The improvement was largely driven by a $43.6 million drop in impairment charges compared to the prior year and a reduction in operating expenses, according to the company's audited year-end financial report.

Net revenue for the year remained relatively flat at $155.1 million, compared to $154.6 million in 2023. The company's core revenue drivers included local, national, digital, and network advertising, which collectively brought in $155.6 million. Special events revenue also rose from $8.1 million to $9.9 million year-over-year.

Despite the return to profitability, the company's independent auditor, EisnerAmper LLP, included a going concern warning in its report. The audit highlighted "substantial doubt" about SBS's ability to continue as a going concern due to its $310 million in 9.75% Senior Secured Notes maturing in March 2026. Management has not yet secured financing to refinance or repay the debt.

"Our ability to operate the business and redeem, repurchase or refinance our Notes by the maturity date remains uncertain," the company acknowledged in Note 2(a) of the filing.

SBS's total liabilities stood at $417 million at year-end 2024, outpacing total assets of $396.5 million and leaving the company with a stockholders' deficit of $20.4 million. While cash and cash equivalents more than doubled to $14.4 million from $6.2 million in 2023, the company drew $4.9 million from its revolving credit facility during the year.

Impairment charges were significantly lower in 2024, totaling $2.7 million compared to $43.6 million in 2023, as the company recorded less impact on the value of its FCC broadcasting licenses. SBS also cut corporate expenses by over one-third, from $14.2 million to $9.1 million.

Management expressed optimism about obtaining future financing but acknowledged that no firm commitments are in place as of the audit date.