When core advertising remains a challenge and there aren’t a lot of digital or political dollars to count on, what does one do? For Spanish Broadcasting System (SBS), the answer was cutting expenses and a key non-essential asset sale. The result? Third quarter income more than doubled, despite a dip in year-over-year net revenue.
SBS released its Q3 2025 report late Wednesday, and the company founded and led by Raúl Alarcón Jr. enjoyed a net income gain to $1.39 million ($0.15 per share), rising from $547,000 ($0.06). The reason? Operating expenses declined to $24.2 million from $27.07 million.
Still, that alone didn’t propel income growth, as operating income fell to $7.08 million from $8.7 million.
The other key to Q3 for SBS was a $2,831,000 gain on the sale of WVEO-TV, WTCV-TV and WVOZ-TV, its “Mega TV” operation in Puerto Rico. Closing of the divestment transpired on August 15.
On a non-GAAP basis, Station Operating Income (SOI) moved to $9.84 million from $11.43 million on net revenue of $31.26 million, declining from $35.76 million.
What does Alarcón have to say about the performance? He’s waiting until December 22 at 11am Eastern to hold a conference call with analysts, investors and bondholders. In prepared comments, he said, “We remain committed to fully surfacing the value of our premier assets and positioning SBS as the premier dual over-the-air and digital audio destination for Latino consumers.”
He also noted that during Q3 SBS “continued implementing a range of initiatives designed to strengthen and diversify our revenue sources while aggressively reducing operating costs. Despite the very challenging economic environment impacting our industry this year, we believe the strategic steps underway will position us to deliver significantly improved results as the overall economy regains its footing.”
