The results are measured in pesos, not dollars, by Mexican broadcaster Grupo Radio Centro, but being in the black is great regardless of the currency in use. Suffice it to say that one of the reasons expenses were up 6% was that the group had to pay more in sales commissions.
The increase in revenue that led to the increase in expenses amounted to a 28% gain over Q1 2011, to Ps. 241,712,000. According to the Yahoo currency converter tool, that amounts to about $18.4M US.
Operating income exploded from about Ps. 8.7M to Ps. 51.8M. Profit exploded as well, coming in at Ps. 29.3M compared to a loss of Ps. 17.3M the previous year.
The company owns/or operates 15 radio stations, but bulk of which – an even dozen – are in the Mexico City market. It has one station each in Guadalajara and Monterrey, and it has its LMA/option on KXOS-FM Los Angeles.
GRC has an American citizen with family ties to the group lined up to purchase the station, which it is running under terms of an LMA. It originally agreed to purchase it for $110M, but in a recent refile of the deal, it can get KXOS for $85.5M if it can close on purchase by 3/27/13. If that proves to be an unachievable goal, the LMA will continue as is and the option price will revert to $110M.
RBR-TVBR observation: It will be interesting to see if this positive revenue result leads to action on the group’s pending acquisition by proxy of KXOS-FM Los Angeles from Emmis. It has until March of next year to close at a bargain price.
