SBS Reports Q2 Net Loss of $4.4M, Revs Down 14%

RADIO ONLINE | Friday, August 29, 2025 | 8:28pm CT

Spanish Broadcasting System (SBS)

Spanish Broadcasting System reported a net loss of $4.4 million for the second quarter ended June 30, 2025, compared to a net loss of $346,000 in the same quarter last year. The company cited a continued decline in advertising revenue, an impairment charge, and macroeconomic uncertainty impacting its markets.

Net revenue for the quarter fell 14% to $34.4 million, down from $40.0 million in Q2 2024. SBS attributed the decline primarily to lower revenues from special events, local, national, and network sales, partially offset by gains in barter sales.

Operating income dropped sharply to $2.4 million, from $8.0 million in the prior-year period. The company also recorded a $2.9 million non-cash impairment charge related to its FCC broadcasting licenses in two markets, reflecting downward revisions in industry advertising revenue projections.

Operating expenses fell 10% to $25.9 million, driven by cost-cutting across compensation, programming, commissions, music licensing, and event costs. Corporate expenses were relatively flat at $2.4 million.

For the six-month period, SBS posted a net loss of $10.1 million, compared to $2.0 million a year earlier. Year-to-date revenue was $62.0 million, down 16% from $73.7 million in the first half of 2024. Impairment charges, severance expenses, and the absence of prior-year contract termination income contributed to the steeper losses.

SBS said its liquidity position remains challenged. Cash and cash equivalents totaled $8.0 million at quarter end, down from $14.4 million at year-end. Cash used in operations during the first half of 2025 totaled $5.0 million, compared to $4.8 million generated in the same period last year.

As of June 30, the company had $310 million in 9.75% senior secured notes maturing in March 2026. SBS disclosed it does not currently have firm financing commitments to redeem, repurchase, or refinance the notes and warned that this raises substantial doubt about its ability to continue as a going concern.

Meanwhile, the company continues efforts to divest non-core television and real estate assets. On August 15, 2025, SBS closed on the $5.7 million sale of its Puerto Rico television broadcast stations WVEO(DT), WTCV(DT), and WVOZ-TV.