SBS Reports Net Revs Down 7%, 9% For Radio

Latest Financials

SPANISH BROADCASTING SYSTEM has reported financial results for the three-month period ended JUNE 30th, 2016.

“We further advanced our multi-platform strategy during the second quarter including building our total audience share,” commented Chairman/CEO RAÚL ALARCÓN. “Our digital and mobile offerings continue to expand their user base while our radio stations remain well positioned across the nation’s top markets. Moving forward, our focus remains centered on leveraging our industry leading content and continuing to connect advertisers with highly engaged Latino audiences on air, online, and via mobile.”

For the quarter-ended JUNE 30th, consolidated net revenues totaled $35.3 million compared to $38.1 million for the same prior year period, resulting in a decrease of $2.8 million or 7%. SBS' radio segment net revenues decreased $3.1 million or 9%, due to decreases in special events, network and national revenue, which were partially offset by an increase in local sales. Local sales increased in the LOS ANGELES, NEW YORK, PUERTO RICO and SAN FRANCISCO markets, while national sales decreased in our CHICAGO, SAN FRANCISCO, MIAMI and NEW YORK markets. SBS' special events revenue decreased in the NEW YORK, MIAMI, LOS ANGELES and PUERTO RICO markets due to a decrease in scheduled events. Television segment net revenues increased $0.2 million or 6%, due to the increases in local, national, and barter sales.

Consolidated OIBDA, a non-GAAP measure, totaled $12.1 million compared to $11.4 million for the same prior year period, representing an increase of $0.8 million or 7%. Our radio segment OIBDA increased $1.1 million or 9%, primarily due to a decrease in operating expenses of $4.2 million, partially offset by the decrease in net revenues of $3.1 million. Radio station operating expenses decreased mainly due to decreases in personnel compensation and benefits, programming bonuses, special events, commissions, and facilities expenses. SBS' television segment OIBDA decreased $0.3 million, due to the increase in operating expenses of $0.5 million offset by the increase in net revenues of $0.2 million. Television station operating expenses increased primarily due to increases in bad debt and barter expenses offset by reductions of acquired and originally produced programming costs. Corporate expenses increased $0.1 million or 5%, mostly due to an increase in compensation and benefits, and stock-based compensation offset by a decrease in professional fees.

Operating income totaled $11.0 million compared to $10.4 million for the same prior year period, representing an increase of $0.6 million or 6%. This increase in operating income was primarily due to decreases in operating expenses, which were partially offset by a decrease in net revenues and an increase in corporate expenses.

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