LBI Revenues Rise For Q2
August 15, 2008 at 5:34 AM (PT)
LBI MEDIA second-quarter net revenues rose 4.6% to $34 million, attributed to a 15.8% jump in radio revenues (to $19.8 million). The company showed growth in all of its radio markets. The gains offset a 7.8% decline in revenues at the company's television stations. Net income fell from $8.6 million to $6.4 million, with the $2.2 million decline attributed to the absence of the $2.8 million deferred compensation benefit for second quarter 2007 as well as higher interest expense, partially offset by higher interest rate swap income.
EVP/Secretary LENARD LIBERMAN said, "I am pleased with our first half performance, even as the general advertising environment remains soft due to macroeconomic conditions. Our radio cluster continues to deliver solid organic growth, even while facing difficult comparisons to the first half of 2007 when the segment grew by 22%. Our top-rated, internally produced television programming has allowed us to achieve significant increases in our national and agency driven advertising business, which has helped offset softness in infomercial advertising revenues.
"One of our key business strategies is to leverage the success of our internally-produced programming and tap into new revenue streams such as network advertising. We believe the ratings success we have achieved in television validates our leading position amongst the nation's most prominent Hispanic broadcasters in several of the nation's largest and most competitive markets. To that end, we are proud to announce the launch of ESTRELLATV, a new Spanish-language television network featuring our successful programming, which will debut in early 2009.
"Consistent with this strategy, we have entered into an agreement to purchase selected assets of (low power) television station KVPA in PHOENIX, ARIZONA, which we are very excited about. Our entry into the The largest Hispanic market in the U.S. with proven operating, management and programming expertise should establish a positive platform for future growth."