Radio Ink - Radio's Premier Management & Marketing Magazine

November 12, 2009: Spanish Broadcasting System's net revenues were $38.6 million in the third quarter, down 7 percent from $41.3 million in Q3 2008. Most of that was due to a 5 percent decline in radio revenues, to $34.6 million from $36.4 million, a dropoff SBS attributed to lower local and barter sales, with local down in all markets but San Francisco and barter down in all SBS markets but New York.

TV revenues were off 17 percent, to $4 million from $4.8 million, also due to declines in barter and local spot sales.

SBS's operating income was $12.3 million, compared to $4 million in Q3 2008, with most of the change due to decreased operating and corporate expenses, offset by the revenue decline. Net income was $2.1 million (3 cents per share), compared to a net loss of $2.8 million (4 cents) a year ago.

"Our third-quarter operating income improved significantly over the prior year as a result of our disciplined focus on cost management, combined with improving top-line trends at our radio station group," SBS Chairman/CEO Raul Alarcon Jr. said. "While our results were impacted by the economic recession and industry-wide weak advertising market, we continue to execute our strategy and deliver valuable, market-leading audiences across our multimedia footprint. We remain focused on expanding Mega TV's national reach, strengthening our content, and increasing our online presence among Hispanic audiences."

He continued, "Looking ahead, our sales teams are working aggressively to convert our solid audience shares into revenues, and we are beginning to see some signs of improvement in the environment in many of our markets. As the economy begins to recover and advertising spending increases, we believe we are well positioned to benefit from the improved operating leverage in our model."