SBS Q2 Revenues Drop
August 7, 2007 at 6:38 AM (PT)
SPANISH BROADCASTING SYSTEM second-quarter consolidated net revenue fell 2% to $48.8 million, blamed on a 5% fall in radio revenues offset by an 87% jump in television revenue. Radio's woes were mostly in lower national sales for MIAMI, CHICAGO, and LOS ANGELES, and local sales decreases in LOS ANGELES, PUERTO RICO, and MIAMI, plus barter decreases in most markets. Net income fell from $2.431 million to $2.39 million (0 cents/share).
Chairman/CEO RAUL ALARCON, JR. said, "While our radio stations continued to post strong audience shares, our radio revenues fell short of our expectations during the second quarter. The radio advertising environment remained under pressure in several of our markets and we experienced considerable volatility in our pacings. However, given our strong ratings in reaching key Hispanic demographics, as well as the recent launch of several programs that have demonstrated early audience traction, we remain optimistic that we can return to top-line growth. In the meantime, MEGA TV is continuing to post robust growth as we continue to convert our audience gains into revenues. MEGA TV posted an impressive 87% increase in revenues during the period, while our operating loss continued to decrease. In the 16 months since its launch, we have consistently strengthened MEGA TV's programming and solidified its presence in the SOUTH FLORIDA market. Our Internet properties have also continued to expand their reach, as we capitalize on our strong brands to drive online audience growth. Looking ahead, we will continue to strengthen our radio, TV and online assets, with the goal of further positioning our company to benefit from the growth of the nation's Hispanic population."
The company expects consolidated net revenue to fall in the low-single digit range year-to-year for third quarter.