Amid executive-level changes and securing millions from litigation over the failed sale of its television division, Spanish Broadcasting System has revealed its financial performance for 2023 and Q4 as the broadcaster restructures its operational framework.
The Spanish language radio operator finished the year at a net loss of $40.7 million – a sharp fall from the previous year’s loss of $4.8 million. Over 2023, net revenue from continuing operations totaled $147.3 million, down 6% from the previous year’s $156.5 million. Annual operating expenses slightly increased by 1%, totaling $105.4 million.
For the fourth quarter, SBS reported a net revenue of $42.3 million from continuing operations, marking a 7% decline from $45.4 million in the same period last year. This decrease was attributed to shifts in national, local, and digital sales, slightly offset by an increase in barter and network sales.
Despite this dip, operating expenses fell by 9% to $27.1 million, driven by reduced costs in special events, commissions, and compensation. Station Operating Income decreased by 3% to $15.2 million.
Since SBS’ last earnings report, President and COO Albert Rodriguez announced his resignation in December, while CFO José Molina stepped down in Feburary.
Spanish Broadcasting System CEO and President Raúl Alarcón said in a statement, “After the replacement and appointment of certain corporate personnel (including my own resumed duties as President) is now well positioned and on its way to establishing triple-digit EBITDA increases in the first and second quarters and, correspondingly, throughout the entire first half of 2024.”
SBS is still managing the pending sale of its television segment and associated real estate assets. The assets, classified as held for sale, include major components like MegaTV. Following the termination of a purchase agreement with Voz Media, Inc. due to non-compliance, SBS has taken legal steps to address and settle the dispute, leading to additional expected income from these discontinued operations.
Alarcón commented, “Our 4th quarter results exhibited the positive realignment of the Company’s financial performance and reflected the beginning of an extensive re-focusing of all of the Company’s operating units, which continues to this day.”
“These significant operating improvements are due, in large part, to an extensive, line-by-line evaluation of our personnel and operations and the expedient adoption of strictly disciplined cost controls and operational oversights. Our ratings are strong, our on-air talents live deep in the hearts of our devoted listeners, our management has a keen eye on day-to-day operations and our pro partners are entirely and deservedly confident of our ability to deliver the Hispanic consumer. We Create Fans Who Create Loyalty For Our Customers – it is this legacy of success that fuels my optimism and confidence in SBS’s future as a leader in Hispanic media and entertainment.”
