Spanish Broadcasting System released its 2023 Q3 financials after market close on Wednesday. SBS’s ongoing investments in Spanish-language programming for terrestrial and digital properties, including its digital marketing department Digidea, were highlighted as key factors influencing the operating results.
Net revenue from continuing operations stood at $35.0 million, a decrease from Q3 2022’s $38.0. This change is attributed to variations in revenue streams, including national, network, and local ad revenue along with digital sales, which collectively dipped to $37.5 million.
While Station Operating Income was reported at $10.0 million, down 28% from the previous year, net operating expenses increased by nearly $1 million, ending at $24.9 million. This was attributed to higher barter expenses, compensation, benefits, digital sales costs, and music license fees.
Two major events mentioned in the Q3 results will affect SBS’ Q4 results and 2024 financials. First SBS’ acquisition of KROI in Houston for $7.5 million, as part of Urban One’s divestment after purchasing all of Cox Media Group’s stations in the market. Those payments will be dispersed into 2024. Second is the pending divestment of SBS’ television arm, which is currently in litigation after the buyer backed out.
SBS Chairman and CEO Raúl Alarcón said, “During the third quarter we continued to drive multi-platform audience growth while making additional progress in expanding our reach across key Hispanic markets. We are furthering our relationship with Latino audiences through ongoing investments in our audio and digital businesses and our live concerts and events division. Importantly, our ability to connect leading brands and talent with the highly coveted Hispanic consumer is still growing daily – at a time when Hispanic purchasing power has never been stronger.”
Despite a Q3 chill, Alarcón is warm on SBS’s future, concluding, “Moving forward, our strategy is clear – to build upon our strength by creating and nurturing winning brands, attracting the most popular content creators, and driving growth across our entire asset base while continuing to fuel profits through disciplined cost containment and margin expansion. I will state with confidence that we’ve never been in a stronger position to benefit from our relationship with what many are calling the New American Mainstream as we are all witnessing the inevitable reality of a Hispanic America that is here to stay.”
