SBS Reports 5 Percent Drop In Radio Revenue

Spanish Broadcasting System, Inc. Monday reported financial results for the three-months ended March 31, 2020.

"While our first quarter results were significantly impacted by the COVID-19 pandemic, we continued to make operational and strategic progress," commented Raúl Alarcón, Chairman and CEO. "Our audio stations held the top rankings across key demos in the New York, Los Angeles and Chicago markets according to Nielsen Audio's May 2020 PPM Report. This strong showing, together with our expanding digital and social media metrics, drove notable aggregate audience growth in the quarter."

Raul Alarcon

"We've taken significant steps to safeguard our personnel while also aligning our cost structure with current market conditions. In addition, as a leading Spanish-language multi-media company and certified minority business enterprise, we have placed total emphasis on helping Latino communities navigate what has proven to be one of the most difficult periods of their lives. We cherish our audience and understand they know and trust our brands and have strong connections with our innovative formats, on-air content and leading talent."

"Looking forward, any marketplace uncertainty will be met with an ironclad commitment to continue serving our Latino community, in any and all ways possible."

"We will be working with the federal government and its representatives, as well as with all state and local authorities, in order to inform and assist our communities and thus continue providing a voice for untold millions of our nation's citizens during these unprecedented times."

Quarter Ended Results

For the quarter-ended March 31, 2020, consolidated net revenue totaled $36.3 million compared to $37.4 million for the same prior year period, resulting in a decrease of 3%.  The radio segment net revenue decreased $1.5 million or 5% due to decreases in local, special events revenue, and barter sales which were partially offset by increases in national, digital and network sales. Additionally, local radio segment revenue includes the negative impact of ad related spot cancellations due to the COVID-19 pandemic. Our television segment net revenue increased $0.5 million or 14% due to the increases in local, national and barter sales, which were offset by decreases in sub-channel rental and subscriber fees revenue.

Operating loss totaled $5.9 million compared to operating income of $5.6 million for the same prior year period, representing a decrease of approximately $11.5 million. This decrease in operating income was primarily due to the impairment charges partially offset by gain from the sale of assets.