Spanish Broadcasting System (SBS) like many of its peers in the media industry reported first quarter 2023 earnings that reflect a decrease in net revenue. But, the year-over-year comps are tough for SBS. Not only are their fewer political dollars, but there is also the expense incurred with the addition of radio stations in Tampa and Orlando.
Yet, the biggest reason SBS saw a wider net loss in Q1 2023 is tied to its events.
According to an SEC filing made by the Miami-based company late Tuesday (5/30), SBS in Q1 2023 saw its net revenue from continuing operations decrease to $34.55 million from $38.03 million.
Operating expenses were up slightly, to $27.73 million from $26.38 million. Factor in other expenses, and SBS’s operating income from continuing operations shrank to $2.43 million from $7.32 million.
This translates to a wider net loss for SBS, of $2.6 million (-$0.29 per common share). This compares to a Q1 2022 net loss of $1.67 million (-$0.21 per share).
Of its Q1 ’23 receivables, barter came in at $277 million, down from $312 million. Trade shrunk to $34.16 million from $44.8 million.
Commenting on the results, SBS Chairman/CEO and founder Raúl Alarcón Jr. explained that the company was impacted by lower revenue due to the fewer number of live events that were produced in the quarter compared to Q1 2022. If not for that, SBS’s results in Q1 “showed a continuation of the growth of our company’s national, network and digital revenues as further confirmation of the strength and durability of our audio strategy, and the successful migration of our brand superiority to our various digital platforms.”
Meanwhile, RBR+TVBR has confirmed that the sale of Mega TV to VOZ Media of Texas has been approved by the Commission, and that closing is imminent. At the same time, SBS is awaiting closing on its purchase of KROI-FM in Houston from Urban One. This transaction was announced in April.
