As the company continues its journey to further financial stability, Spanish Broadcasting System Chairman and CEO Raúl Alarcón outlined a meticulous approach to cost management and operational efficiency on the company’s Q3 earnings call.
Alarcón said, “We are doubling down on yet another line-by-line cost elimination review at all business units, which, as I have stated previously, will continue well into 2025. Some of you have asked, why continue with the cost cut? Why is it taking so long? Why not contract an efficiency consultant and implement across-the-board percentage cuts at all business units and get it over with?”
“The answer is that we are taking pains to identify where we can reduce expenses without hurting the overall integrity of the business. This includes finding the creative and self-motivated personnel that consume additional duties without sacrificing effectiveness while eliminating the sacred cows and methods that have no place in today’s challenging competitive environment,” he continued.
The call also revealed SBS finalized its $7.5 million acquisition of Urban One’s Praise 92.1 (KROI) in Houston, which has now relaunched under a Regional Mexican format as La Ley 92.1. Raúl Brindis, formerly with TelevisaUnivision’s Que Buena 102.9 (KLTN), has joined as morning host.
SBS reported third-quarter revenue of $34.3 million, a 2% decline from $35 million in Q3 2023. Despite the drop, operating expenses fell 11% year-over-year to $22.2 million, while corporate expenses, excluding stock-based compensation, dropped 37% to $2.1 million. Station Operating Income increased 21%, reaching $12.1 million compared to $10 million in the prior-year quarter.
The Hispanic-focused broadcaster will continue to seek a buyer for its Mega TV division in 2025, while expanding its programming with its new La Privada network, talent in Puerto Rico, Orlando, Tampa, and Houston, and the La Musica digital platform.
Alarcón’s comments came days after SBS became the latest to join the Hispanic Radio Alliance, a group formed to highlight the influence and economic potential of Hispanic radio in the US, adding its influential voice to the growing coalition of industry leaders in the initiative.
