Following a transformative 2024, Spanish Broadcasting System is under heightened financial pressure following a first quarter that saw revenue decline across its core businesses and its net loss more than triple year-over-year.
For the quarter ending March 31, SBS posted a net loss of $5.65 million, compared to a $1.62 million loss in Q1 2024. Consolidated net revenue fell 18% to $27.57 million, down from $33.73 million last year.
Radio revenue fell to $26.46 million from $32.32 million, while television declined from $1.41 million to $1.12 million. The Hispanic-focused company operates radio stations in nine US markets as well as syndication arm, AIRE Radio Networks.
Despite reducing total operating expenses from $27.41 million to $24.37 million, operating income collapsed to just $93,000, down from $5.22 million a year ago after being hit with severance costs and the absence of nearly $2 million in one-time “Other Operating Income” recorded last year as key factors.
In financial disclosures accompanying the earnings release, SBS acknowledged it is unlikely to repay or refinance its $310 million in 9.75% Senior Secured Notes due March 2026 without new capital. The company is also drawing down its $15 million revolving credit facility to fund general operations. As of March 31, $4.9 million had been borrowed, though the facility was recently extended to August 2025.
SBS said it remains actively pursuing the sale of its MegaTV division and various real estate assets and expects those transactions to close within a year.
Like the majority of radio operators, the Spanish-language broadcaster is growing its digital arm, with CEO Raúl Alarcón recently highlighting SBS’s “David Initiative,” an audiovisual expansion of its radio content via the LaMusica app, YouTube, and an upcoming Connected TV deal. He said the strategy positions SBS for the future as a global Hispanic content distributor.
