SBS Reports Radio Net Revenues Decreased 1%

Q1 Numbers Finally Released

SPANISH BROADCASTING SYSTEM has reported its financial results for the first quarter ended MARCH 31, 2017.

For the quarter-ended MARCH 31st, consolidated net revenues totaled $31.3 million compared to $31.6 million for the same prior year period, resulting in a decrease of $0.3 million or 1%. The radio segment net revenues decreased $0.3 million or 1%, due to decreases in national, network, and local revenue, which were partially offset by increases in digital sales and special events. Local sales decreased in the LOS ANGELES, CHICAGO, PUERTO RICO and NEW YORK markets, while national sales decreased in the LOS ANGELES, CHICAGO, PUERTO RICO and MIAMI markets. Special events revenue increased primarily in the LOS ANGELES market. 

Consolidated Adjusted OIBDA, a non-GAAP measure, totaled $5.9 million compared to $5.4 million for the same prior year period, representing an increase of $0.5 million or 9%. Radio segment Adjusted OIBDA decreased $0.1 million or 1%, primarily due to a decrease in operating expenses of $0.2 million and an decrease in net revenues of $0.3 million.  Radio station operating expenses decreased mainly due to decreases compensation and benefits, commissions, facilities expenses and professional fees offset by increases in digital programming costs related to the LAMUSICA App, affiliate station compensation and special events expenses.  

Operating income totaled $3.8 million compared to $3.8 million for the same prior year period, representing an increase of less than $0.1 million or 2%. This increase in operating income was primarily due to decreases in operating and corporate expenses and offset by a decrease in net revenues and an increase in recapitalization costs of $0.8 million related to professional fees incurred by the Company in evaluating all options available towards executing a comprehensive recapitalization plan.

“Our first quarter results mark a good start to the year as we continued to grow our total audience shares while also delivering improved operating results,” said Chairman/CEO RAÚL ALARCÓN. “Our strategy remains centered on maximizing the reach of our multi-media assets, including our radio stations which continue to hold leadership positions across the nation’s largest Hispanic markets. We have also further advanced our experiential platform and our mobile entertainment presence through our unique LAMUSICA app. Looking ahead, we will continue to operate with a focus on innovation as we look to capitalize on our multi-media capabilities and connect advertisers and brands with highly engaged Latino audiences across all media platforms.”

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