SBS Reports Q4 And Year 2006 Financials
March 13, 2007 at 6:09 AM (PT)
SPANISH BROADCASTING SYSTEM has reported financial results for the quarter and fiscal year ended DECEMBER 31, 2006.
For the quarter, consolidated net revenue totaled $44.4 million compared to $46.9 million for the same prior year period, a decrease of 5%. Radio net revenue was $42.7 million compared to $46.9 million for the same prior year period, a decrease of 9%, primarily from promotional events, and, to a lesser extent, local and national revenues and other revenues related to the LMA fees received for the previously sold LOS ANGELES stations (KZAB and KZBA). This radio net revenue decrease was primarily in their LOS ANGELES, NEW YORK and MIAMI markets.
For the fiscal year ended DECEMBER 31, 2006, net revenue totaled $176.9 million compared to $169.8 million for the same prior year period, a rise of 4%. Radio net revenue totaled $172.1 million compared to $169.8 million for the same prior year period, up 1%, primarily from local revenue. The radio net revenue growth of 1% was primarily in their SAN FRANCISCO and PUERTO RICO markets, offset by decreases in NEW YORK, LOS ANGELES, CHICAGO and MIAMI.
"During 2006, we continued to build our brands and strengthen our Hispanic multi-media platform," commented Chairman/CEO RAUL ALARCON JR. "Despite solid audience shares, our fourth-quarter radio revenues were below our expectations due to a soft advertising environment in some of our larger markets, primarily NEW YORK and LOS ANGELES. As in prior periods of market volatility, we are confronting short-term market challenges with a long-term emphasis on consistently delivering Hispanic listeners to our advertisers. We are encouraged with ARBITRON's Fall ratings book, which showed solid audience share gains in our key markets.
"Furthermore, MEGA TV in MIAMI, while still in an early stage of development, continues to build a dynamic audience base in South FLORIDA. Our Internet properties have also garnered an impressive user base, and we remain focused on monetizing our attractive user demographics. Overall, we are pleased with the progress we are making in positioning our assets to excel in a dynamic media marketplace. We believe the investments we are making in our business today will lead to enhanced value for our shareholders."