SBS Revenues Fall 24% In Q1
May 15, 2009 at 5:00 PM (PT)
SPANISH BROADCASTING SYSTEM is the latest radio group to report net-revenue declines in the 20s. SBS's first-quarter revenue fell 24% to $27.8 million, as a 6% increase in TV revenues was overwhelmed by a 27% drop in radio revenue.
SBS's operating loss for Q1 was $9.7 million, compared to $2.8 million in '08, primarily due $10.6 million in restructuring costs and an impairment charge for company's FCC licenses in CHICAGO and SAN FRANCISCO.
"We made considerable progress in reducing our costs during the quarter, significantly offsetting the impact of the global economic recession and bleak U.S. advertising market," SBS Chairman/CEO RAUL ALARCON JR said. "MEGATV generated another healthy revenue increase, as we continued to expand and monetize our growing TV audience. Our radio operations reported reduced revenues, despite continued strong audience shares, reflecting the ongoing industrywide advertising downturn. Looking ahead, our ability to deliver Hispanic audiences to national and local advertisers in the nation's top markets has never been stronger. We will continue to support our station brands, while aggressively controlling our costs, with the goal of positioning our assets for growth over the long term."