SBS To Sell Non-Core Assets, Cut Costs

Spanish Broadcasting System (SBS) Chairman and CEO Raúl Alarcón, Jr. addressed investors Monday morning during a quarterly earnings call, outlining the company’s strategy to navigate a difficult start to 2025 after a transformative 2024. Despite SBS reporting a deepened net loss of $5.65 million for Q1 2025 (compared to $1.62 million in Q1 2024) and an 18% revenue decline to $27.57 million, Alarcón emphasized building “operating momentum” through aggressive cost-cutting, strong audience performance, and digital expansion.

Alarcón highlighted $3.2 million in operational savings achieved in Q1, with an expected $2.5 million per quarter moving forward, ensuring no impact on core infrastructure. He pointed to SBS’s ratings success, particularly in Houston, where the newly launched KROI (La Ley 92.1) became the top Hispanic station, driven by the syndicated morning show hosted by Raúl Brindis. The show’s success has extended to SBS’s AIRE Radio Networks and digital platforms like LaMusica, with over 225,000 new streaming users. In Tampa, WSUN-FM’s Nandy & Cristy morning show also bolstered growth through live video streaming.

Digitally, Alarcón underscored the “DAVid Initiative,” which expands audiovisual content across LaMusica and YouTube, and a new partnership with Roku to distribute LaMusicaTV to millions in the U.S. and Mexico. Further rollouts are planned for Samsung TV Plus, Tubi, Pluto TV, and Amazon Fire TV in 2025.

To strengthen SBS’s balance sheet, Alarcón confirmed plans to sell non-core assets, including Puerto Rico television holdings, with proceeds aimed at refinancing $310 million in senior secured notes due in 2026. Additional real estate and TV asset divestitures are also in progress. Despite challenges like national advertiser pullbacks and event cancellations due to Los Angeles wildfires, Alarcón expressed confidence in SBS’s multi-platform ecosystem, which he said enhances brand visibility and engagement to serve the growing U.S. Hispanic market.

Alarcón’s long-term vision leverages SBS’s 17 radio stations, digital platforms, live events, and syndication services to capitalize on Hispanic consumer trends, reinforcing his optimism about the company’s future despite financial headwinds.