SBS Radio Division Down 18%
November 6, 2008 at 6:05 AM (PT)
SPANISH BROADCASTING SYSTEM has reported financial results for the three- and nine-month periods ended SEPTEMBER 30th, 2008.
Chairman/CEO RAUL ALARCON JR commented, "Our third-quarter financial performance reflects the impact of a slowing economy and an industry-wide weakness in advertising demand, offset in part by strong growth at MEGATV. During the quarter we aggressively lowered expenses, streamlined personnel and eliminated any unnecessary discretionary spending in order to stabilize operating performance in anticipation of what is expected to be a prolonged economic downturn. We fully expect to realize the benefits of these savings in the coming quarters as we continue to strengthen the leadership position of our heritage radio brands in the nation's top Hispanic markets."
For the quarter ended SEPTEMBER 30th, 2008, consolidated net revenue totaled $41.3 million compared to $46.8 million for the same prior year period, resulting in a decrease of $5.5 million or 12%. This consolidated decrease was attributed to SBS's radio segment which had a net revenue decrease of $7.9 million or 18%, offset by an increase in the television segment, with a net revenue of $2.4 million or 99%. BSB reported their radio segment had a decrease in net revenue primarily due to lower local and national sales. The decrease in local sales occurred in our MIAMI, LOS ANGELES, NEW YORK and CHICAGO markets, offset by an increase in PUERTO RICO.
Operating income totaled $4.0 million compared to $11.9 million for the same prior year period.