SBS Radio Revenues Rise 2%
November 17, 2015 at 3:30 AM (PT)
SPANISH BROADCASTING SYSTEM (SBS) has reported financial results for the period ended SEPTEMBER 30th, 2015. For the quarter-ended SEPTEMBER 30th, consolidated net revenues totaled $36.4 million compared to $36.3 million for the same prior year period, resulting in an increase of $0.1 million over the prior year period.
SBS' radio segment net revenues increased by $0.8 million or 2%, due to increases in national, network, internet, and barter sales, which were partially offset by a decrease in special events revenue. National sales increased in the NEW YORK, CHICAGO, LOS ANGELES and SAN FRANCISCO markets. Special events revenue decreased in the NEW YORK, SAN FRANCISCO and PUERTO RICO markets due to a decrease in scheduled events. Network sales increases were directly related to the "AIRE Radio Network" advertising platform, which was launched in the beginning of 2014.
Consolidated OIBDA, a non-GAAP measure, totaled $10.7 million compared to $9.3 million for the same prior year period, representing an increase of $1.4 million or 15%. The radio segment OIBDA increased $2.2 million, primarily due to the decrease in operating expenses of $1.4 million, and an increase in net revenues of $0.8 million. Radio station operating expenses decreased mainly due to decreases in special events expenses, professional fees, and barter expenses, which were offset by increases in commissions, advertising and promotions, and AIRE related expenses, such as affiliate station compensation and promotional events.
Operating income totaled $8.8 million compared to $8.1 million for the same prior year period, representing an increase of $0.7 million or 9%. This increase in operating income was primarily due to the decrease in operating expenses which were partially offset by the impairment of an FCC broadcasting license.
"We made solid progress in building-out our AIRE Radio Network platform and expanding our digital assets during the third quarter," commented Chairman/CEO RAÚL ALARCÓN, JR. "We are leveraging our strong station brands and multi-media assets to attract a growing mix of advertising partners who wish to connect with the rapidly growing Latino population. Looking ahead, we remain focused on supporting our leading stations in the nation's top-10 markets, while continuing to strategically invest in our network and mobile distribution channels, with the goal of further increasing our audience and expanding our share of advertising dollars."