Spanish Broadcasting System has released its financial results for the third quarter, highlighting profitability improvements despite a decline in revenue. The company reported net revenue from continuing operations of $34.3 million.
While this marked a 2% decrease from $35.0 million in the same quarter of 2023, SBS Chairman and CEO Raúl Alarcón noted how cost reductions and operational efficiencies contributed to gains in profitability metrics.
Operating expenses dropped 11% year-over-year to $22.2 million, while corporate expenses, excluding stock-based compensation, were reduced by 37%, from $3.3 million in Q3 2023 to $2.1 million in Q3 2024. Station Operating Income grew 21% to $12.1 million compared to $10.0 million in the prior-year quarter.
Alarcón stated, “As previously delineated, the Company is continuing to roll out the operational initiatives undertaken in conjunction with the Management changes implemented in Q1. These initiatives have yielded extraordinary financial results, with an impressive 50% increase in adjusted OIBDA for the third quarter and a likewise notable 53% growth for the nine months ended September 30.”
Alarcón highlighted ongoing efforts to streamline operations, announcing a line-by-line cost elimination review across all business units. SBS is also expanding its programming portfolio with initiatives like La Privada, a new national Mexican/Urbano fusion network, and talent additions in Puerto Rico, Orlando, Tampa, and Houston.
After a long delay, SBS’ acquisition of KROI in Houston from Urban One is also set to become SBS’s entry into the nation’s third-largest Hispanic market.
“Our audience acceptance and ratings are strong, our sold-out events are adding an important line of profitability to our core audio assets (especially in Q4),” added Alarcón. “Our network will be posting a banner year and national revenues are showing improvement now that the ’24 election cycle has concluded.”
Alarcón also emphasized the company’s focus on local and digital content. “This dual on-air/digital strategy goes hand-in-hand with the many recent studies that point to the underlying and unwavering strength of audio, particularly among Hispanics, who exhibit a high rate of engagement with on-air radio, podcasts, and digital streaming. We’ve spent over four decades delivering entertainment and information to audiences throughout the nation, becoming a trusted participant in their daily lives. The entire SBS team will continue to work tirelessly to build on that legacy, which will, in turn, deliver increasing returns to our stakeholders.”
As the year draws to a close, the company continues to seek a buyer for its Mega TV division.
