MIAMI — “Management changes” — specifically the departures of Albert Rodriguez as President/COO and José I. Molina as Chief Financial Officer — implemented at the start of 2024 are continuing to bring operational positives to Spanish Broadcasting System (SBS), with the company’s founder and Chairman/CEO marveling in how these initiatives have “yielded extraordinary financial results” for the Hispanic-focused multimedia company that still seeks a buyer for its Mega TV operation.
That said, net revenue from continuing operations is flat year-to-date and declined by 2% in the third quarter.
SBS’s results were released late in the day Friday, at a time when many were not paying attention to financial news given the Thanksgiving holiday weekend.
In Q3, net revenue from continuing operations slipped to $34.31 million from $35.01 million, as expenses were trimmed year-over-year. Helping in a significant away this year was the absence of an impairment charge; a $43.58 million such charge was added to the P&L in the third quarter of 2023.
As such, even though net revenue from continuing operations was down from last year, operating income of $9.39 million was seen, swinging from a Q3 2023 operating loss of $37.62 million.
This resulted in Q3 2024 net income of $547 million (6 cents per share), compared to a Q3 2023 net loss of $32.54 million (-$3.50).
Perhaps the best takeaway from SBS’s quarterly results for the period ending September 30 is that Station Operating Income (SOI) grew to $12.13 million, from $10.03 million.
Adjusted OIBDA increased to $10.02 million, from $6.69 million.
With a Q3 2024 earnings call forthcoming at a date to be announced, SBS shared that it intends to formally close on its acquisition of KROI-FM in the Houston market for $7.5 million. As of November 29, some $6.4 million had been paid; the remaining $1.1 million will be paid by December 23, SBS said.
What about “discontinued operation” Mega TV, which was intended to be sold to VOZ Media in 2023 but resulted in a non-consummation due to financial challenges tied to the proposed buyer? The real estate assets and production facility in Miami are still on the block and SBS expects the assets to be sold “within one year.”
COST ELIMINATION, STATION-TO-STATION
With a 50% increase in adjusted OIBDA in Q3, Alarcón noted in prepared remarks that SBS is “doubling down on yet another line-by-line cost elimination review at all of the company’s business units.”
Alarcón also remarked that the digital multicast radio offering “La Privada,” best-described as a fusion format featuring Latin Urban and contemporary regional Mexican music, is now being rolled out. Additionally, he pointed to strong ratings and audience acceptance; national revenue is showing improvement; and a “banner year” in the making for the company’s Aire Radio Networks national arm.
