LBI Loss Widens In Q4
March 31, 2009 at 4:17 PM (PT)
LBI MEDIA fourth-quarter net revenues decreased 4.5% to $26.4 million, blamed on decreased advertising revenue in both the company's television and radio segments, specifically lower television infomercial advertising, ad cancellations in TEXAS after Hurricane IKE, and the economy, offset partially by incremental revenues from Spanish independent KPNZ-TV/SALT LAKE CITY and improved radio performance in TEXAS. The company reported a net loss of $39.4 million for the three months ended DECEMBER 31st, 2008, as compared to a net loss of $4.9 million for the same period of 2007, widening by $34.5 million.
"2008 was a challenging yet successful year for LBI MEDIA. Despite the difficult economic environment and the many issues faced by the broadcast industry, we managed to outperform our peers," said EVP/Secretary LENARD LIBERMAN. "While we experienced the challenges of a very difficult advertising market faced by the industry, our ratings and market share grew through strong radio and television programming.
"Despite the current economic climate, our radio assets have performed well in 2008 with growth across all of our markets, reflecting improved station ratings and increased national advertiser acceptance of our station formats. Our flagship radio stations in LOS ANGELES and HOUSTON, QUE BUENA and LA RAZA, are now the number one stations in their respective markets all day in the Hispanic Adults 18-49 demographic according to the January 2009 PPM. Our flagship radio station in DALLAS, LA RAZA, is also the #1 Hispanic station in the market all day in the Hispanic Male 18-34 demographic based on the JANUARY 2009 PPM. The ratings success of our radio stations bodes well for our future growth as we seek to convert our audiences into increased advertising dollars.
"While overall television revenues were down in 2008, we are encouraged by the ratings success of our internally produced programming. We expect our television stations to garner an increasing share of advertising revenues across our markets as we capitalize on our ratings growth as the economy recovers, including both bigger shares on agency buys, as well as increased business with local advertisers.
"We expect to continue to capitalize on the strength of our content in both radio and television. In July of this year, we plan to launch our national television network, ESTRELLATV, which we expect will reach about 70% of all Hispanic television households through both our owned and operated stations, as well as our affiliates. We anticipate that this will allow us to access Hispanic network advertising budgets that we do not have access to today.
"With ESTRELLATV, our affiliate network, and our strong portfolio of stations, we will be in a position to offer our clients unparalleled advertising solutions. Despite the difficult near-term economic conditions, we are committed to continuing to execute our strategy of delivering the best and most creative advertising solutions for our clients, and investing in our content to further increase our ratings success and market shares. With the launch of ESTRELLATV, we believe we will solidify our strategic position as a leader of providing content and advertising solutions for a rapidly growing and vibrant Hispanic community."