Spanish Broadcasting System Second Quarter Revenue Falls 58%

Q2 Loss

The second quarter was not pretty for SPANISH BROADCASTING SYSTEM, which saw consolidated net revenue plummet 58% year-to-year to $15.5 million; radio was off 61% to $12.7 million, while television was down 28% to $2.8 million. Adjusted OIBDA also fell 87% to $1.6 million, with radio off 84% to $2.4 million. The company's operating income dropped 106% to a loss of $500,000.

Chairman/CEO RAÚL ALARCÓN said, “The COVID-19 pandemic impacted all industries and, as a result, shutdowns and overall macro-economic conditions drove many advertisers to either reduce or eliminate their ad spending. In response, we executed targeted actions to increase our liquidity and cash position by aligning our operations with the challenges presented by this unexpected crisis, as we have in the face of numerous other calamities during nearly four decades of operation.

“We are focused on continuing to run our operations at the highest level and capitalize on emerging opportunities across all of our business units. In fact, trends improved month by month during the second quarter and we have seen further recovery in JULY and
AUGUST.

“In this regard, we make special mention of P&G Chief Brand Officer MARC PRITCHARD and others like him who are confirming the true relevance and reach of the mass medium of radio, particularly outlets owned and operated by minorities, by actually increasing their
advertising commitments in an effort to inform and assist these important communities and consumers during these unprecedented times.

“We remain in constant contact with all relevant federal, state and local governmental and medical officials across our markets in order to guarantee our #1 priority: informing and assisting Latino communities who have been disproportionately impacted by COVID-19, reflecting the deep commitment to our audience and the trust they place in our station brands, our on-air talent, and our programming. The entire SBS team is committed to validating that trust as we continue providing critical information, support and entertainment to Hispanics across the U.S. and PUERTO RICO.

“We will remain open for business - pandemic or no pandemic - and will continue executing our strategy to further grow our aggregate multi-platform audience. We had significant momentum in our business for years prior to COVID-19, including consistent ratings growth, expansion of all our digital media metrics, and industry-leading operating margins - and will emerge on the other side of the crisis with the brands, talent and strategy to continue delivering industry-leading growth and value creation.”

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