SBS Q1 Revenue Drops 18% Amid Strategic Expansion

RADIO ONLINE | Friday, June 20, 2025 | 10:17pm CT

Spanish Broadcasting System (SBS)

Spanish Broadcasting System reported an 18% decline in net revenue for the first quarter of 2025, totaling $27.6 million compared to $33.7 million during the same period in 2024. The results were impacted by softening advertising demand and wildfires in the Los Angeles area, though partially offset by gains in digital sales and cost-cutting initiatives.

Despite the revenue downturn, SBS Chairman and CEO Raul Alarcon highlighted strategic progress across multiple fronts. "We continued to make substantial progress in executing on our strategic plan while significantly reducing our operating expenses," said Alarcon. "We successfully launched our start-up station in Houston, delivered on our digital DAVid initiative, and invigorated our radio and LaMusica brands."

Operating expenses declined by 11% to $24.4 million, and corporate expenses excluding stock-based compensation fell by 7%. Still, station operating income (SOI), a non-GAAP metric, dropped 49% year-over-year to $3.2 million. Adjusted OIBDA also plunged 76% to $910,000.

The company recorded a net loss of $5.6 million for the quarter, deepening from a $1.6 million loss a year ago. Cash on hand dropped from $14.4 million at the end of 2024 to $7.6 million at the end of Q1.

SBS noted significant audience gains at its new Houston station, KROI-FM, where the Raul Brindis morning show recently hit No. 1 among Hispanic listeners and No. 2 overall in the market. The station reached profitability in May, just three months after its launch. In Tampa, the company launched the "Nandy & Cristy" morning show on WSUN-FM with simultaneous video streaming via LaMusica.

To further expand its digital footprint, SBS announced a new content distribution deal with Roku to bring LaMusicaTV to millions of users in the U.S. and Mexico. Additional FAST platform rollouts on Samsung TV Plus, Tubi, Pluto TV, and Amazon Fire TV are planned in 2025.

On the asset sales front, SBS entered into a $6.5 million agreement on May 29 to sell three television stations in Puerto Rico-WVEO(DT), WTCV(DT), and WVOZ-TV -- pending FCC approval expected later this year. This comes after a previously planned $64 million deal with Voz Media fell through in 2023 and was settled in early 2024.

Looking forward, Alarcon said SBS will continue investing in its brands and digital platforms, aiming to capitalize on the growing Hispanic media market. "Our multi-station portfolio, combined with our digital LaMusica assets, our AIRE Networks syndication, and our live events business, represent a unique platform for advertisers," he added.