LBI Revenues Fall, Loss Widens For Q3
November 17, 2009 at 4:24 AM (PT)
LBI MEDIA net revenues fell 9.7% to $27.5 million for third quarter, primarily attributed to falling ad revenue. Radio revenue fell 3.9% to $16.5 million, blamed on declines in SOUTHERN CALIFORNIA, while television revenue fared worse, dropping 17.2% to $11 million, attributed to slips at LOS ANGELES, DALLAS and SALT LAKE CITY stations.
The company's net loss widened from $29.4 million to $76.9 million, including an income tax provision of $3.3 million in 2009, as opposed to an income tax benefit of $15.6 million for the same period in 2008.
CEO/Pres. LENARD LIBERMAN said, "Our third-quarter financial results were impacted by the continued economic downturn and challenging advertising environment. Despite the difficult conditions, we continued to execute our strategy of capitalizing on our high-quality programming and the strong value proposition we deliver to our advertising partners. While we have seen some improvement in the third quarter with respect to broadcast revenue performance as compared to the first and second quarters of this year, there are markets like SOUTHERN CALIFORNIA that remain very challenged. The challenges facing broadcasters before a market turnaround are still considerable. However, we remain optimistic for the future.
"The much-anticipated launch of our national television network, ESTRELLATV, took place on SEPT. 14th. The launch has been successful and the network is performing in line with our expectations. During the third quarter, we signed an affiliation agreement with SINCLAIR BROADCAST GROUP, INC. for a television station in LAS VEGAS, NEVADA, the 22nd largest Hispanic market in the country. Combined with our six owned-and-operated stations and our affiliated stations, we now have distribution in 24 markets covering over 67% of U.S. Hispanic television households. We have several affiliation agreements pending and are pursuing additional distribution partnerships in Hispanic markets throughout the U.S.
"Looking at the performance of our other stations, we continue to deliver strong ratings in our markets and our diverse programming has captured dedicated audiences. Our programming lineup and ratings performance has improved as a result of the positive reception of our newly introduced shows, including TENGO TALENTO, MUCHO TALENTO, a celebrity-judged talent show that began airing in early OCTOBER. This show has garnered a ratings increase of over 150% year-over-year in a very competitive time slot. While we are taking concerted steps to strengthen our programming, we also remain focused on containing our operating costs and are actively promoting cost-saving measures across our operations.
"Moving forward, we remain committed to strengthening our programming lineup, driving ratings gains across our radio and TV properties, as well as delivering strong national network ratings, and monetizing our growing audience. Given our strong market position, our attractive radio and TV broadcasting assets, and our recently launched ESTRELLATV network, we believe we will be in position to generate growth when the economy recovers."