Radio Revs Down 11% For Spanish Broadcasting System
May 16, 2014 at 3:49 AM (PT)
SPANISH BROADCASTING SYSTEM has reported financial results for the first quarter ended MARCH 31, 2014. For the quarter, consolidated net revenues totaled $32.8 million compared to $39.1 million for the same prior year period, resulting in a decrease of $6.3 million or 16%.
The radio segment net revenues decreased $3.5 million or 11%, due to a decrease in special events revenue, which was offset by increases in local and network sales. The special events revenue decrease occurred throughout most of their markets, with the exception of the SAN FRANCISCO market. The increase in local sales was mainly in the LOS ANGELES, NEW YORK and PUERTO RICO markets. The increase in network sales occurred throughout all markets.
OIBDA, a non-GAAP measure, totaled $7.8 million compared to $9.7 million for the same prior year period, representing a decrease of $1.9 million or 19%. The radio segment OIBDA decreased $2.0 million or 16%, primarily due to the decrease in net revenues of $3.5 million, offset by the decrease of station operating expenses of $1.5 million.
Radio station operating expenses decreased mainly due to special events expenses, which were offset by increases in compensation and benefits, network affiliate station compensation and professional fees.
Operating income totaled $6.5 million compared to $7.3 million for the same prior year period, representing a decrease of $0.8 million or 11%. The decrease in operating income was primarily related to the decrease in special events.
"Advertising sales at our radio division got off to a healthy start in 2014 with growth in both local and network sales, reflecting the consistent strength of our station brands in the nation's largest Hispanic markets," commented Chairman/CEO RAUL ALARCÓN, JR. "Our overall results were primarily impacted by a reduction in special events revenue during the quarter, as our special events initiatives vary from quarter-to-quarter. Special events remain a key component of our promotion strategy and we expect increased activity in the year ahead. We are continuing to invest in our multi-media platform and sales efforts, in an effort to expand our revenue profile and the breadth of marketing opportunities we provide to our advertising partners. We believe we are well positioned to generate improved results in the year ahead as we focus on leveraging our strong audience shares to attract new advertisers seeking to reach the rapidly growing Hispanic population."