Spanish Broadcasting System reported a decrease in net revenue for the first quarter of 2024, with total revenue dropping from $34.5 million in 2023 to $32.3 million. Despite this reduction, the company saw noteworthy improvements in net loss year-over-year.
SBS’s first quarter marked the beginning of a pivotal year, with the company making significant strategic adjustments, including the discontinuation of certain television operations as the company continues to navigate through the disposal of its television segment.
The Spanish-language broadcaster finished the quarter with a net loss of $1.6 million, a 38% improvement from Q1 2023’s $2.6 million loss. The quarter’s operational expenses decreased by 10% year-over-year, contributing to an increase in Station Operating Income from $6.8 million to $7.4 million.
In the earnings, SBS announced its $7.5 million acquisition of KROI in Houston from Urban One has been delayed, but is set to close by the fourth quarter of 2024, pending regulatory approvals.
This release came only days after the company released its 2023 earnings totals on May 30.
CEO Raúl Alarcón emphasized the company’s focus on enhancing multi-platform audience engagement and operational efficiencies. With initiatives like the DAvID digital strategy set to launch later this year, SBS is optimistic about returning to pre-COVID financial performance levels.
Alarcón commented, “During the first quarter, core radio revenues increased 4% which, when combined with our renewed focus on operational discipline at each and every one of our business units, has led to a significant improvement in station operating income and Adjusted OIBDA.”
“Moving forward, we will focus relentlessly on fortifying our operations while aggressively growing our aggregate multi-platform audience, as will be evidenced by our upcoming debut format serving Houston, the nation’s third-largest Hispanic market and fourth largest market overall.”
As for the future, “I confidently expect that our second quarter and, correspondingly, our First Half 2024 results will likewise approximate or exceed triple-digit growth in consolidated Adjusted OIBDA, including television, as compared to last year,” Alarcón added.
