Mexican broadcast Grupo Radio Centro had a good Q3, which it said was attributable to much greater advertising activity in Mexico. But expenses were also up – more ad sales meant higher commission outlays, and the deal with Emmis for KXOS Los Angeles helped fatten the income of the legal community.
Grupo was not able to buy the station outright, since foreign ownership of an FCC-licensed entity cannot exceed 25%. It was forced to set up a company owned and operated on a surrogate basis by American citizens. 93.9 Holdings, Inc. the company, and “certain members of the Aguirre family” are the interests behind it.
So for Q3, the company’s broadcast income was a modest yet respectable 3.6%. But profit before income taxes was down 65.7%.
The change was reported in the “other expenses” category, up from 12.6M pesos to 59.9M pesos. There were other issues included in the category, but the KXOS transaction was listed as the first and foremost cause of the spending.
The company holds the maximum 25% allowed in 93.9 Holdings. The long-term LMA under which it had been operating the station was terminated upon Grupo’s activation of its purchase option, and in its place an LMA-until-closing is in effect, under similar terms to the earlier arrangement.