SBS Reports 1Q Revenue Fell Two Percent

Spanish Broadcasting System, Inc. reported financial results for the first quarter ended March 31, 2015.

• First quarter consolidated net revenues fell 2% to $32.1 million in 2014. 
• Radio net revenues decreased $0.2 million or 1% to $29.2 million, due to decreases in national, local and barter sales, which were partially offset by an increase in network sales. 
• National sales decreased in Los Angeles, New York, San Francisco and Puerto Rico markets. 
• Local sales decreased in Los Angeles and Puerto Rico markets. 

A network sales increase was directly related to SBS' "AIRE Radio Network" advertising platform, which launched in the beginning of 2014.

Consolidated OIBDA declined 9% to $7 million from $7.8 million, while radio OIBDA was down $0.1 million. Radio station operating expenses decreased mainly due to decreases in barter expenses and professional fees, which were offset by an increase in special events expenses.

Operating income fell 11% to $5.8 million as compared to $6.5 million in 2014. The decrease in operating income was primarily due to the decrease in net revenue. The company posted a net loss of $8.6 million ($1.19 per diluted share) as compared to $6 million (84 cents) in the year-ago period.