Q1 net revenues declined 17.4% to $21.8 million for LBI Media (Liberman Broadcasting). Both radio and TV ad revenues were down, but the company is moving full speed ahead with its TV network launch in preparation for the coming economic recovery.
“Moving forward, LBI Media is focused on expanding the EstrellaTV network station group, continuing to strengthen our internally produced content, driving increased ratings across our radio and TV properties, and monetizing our audience gains. Given the underlying strength of our radio and TV station groups, as well as the upcoming launch of the EstrellaTV network, we believe we are well positioned to grow our audiences and our advertising revenue shares as the economy begins to recover,” the company said in a statement.
The latest affiliate to sign on for Estrella TV is KTNC-TV Sacramento-San Francisco, one of the Pappas stations in bankruptcy being acquired by New World TV Group. The Estrella TV network is set to launch in August.
For Q1, LBI reported that radio revenues decreased 11.4% to $12.1 million. That was primarily attributed to an advertising decline in the Los Angeles market.
TV revenues decreased 23.9% to $9.7 million. That was blamed on lower ad revenues from the company’s California and Texas markets, partially offset by increased revenues in Utah.
Adjusted EBITDA for the entire company decreased 37% to $5.8 million.
“During the first quarter, we experienced weak revenues across most of our stations as a result of the national recession. While our radio segment outperformed the industry, our TV segment experienced losses of business in line with those seen by our competitors. Our ratings remain strong and our programming continued to drive audience shares across our operations during the first quarter. We also took steps to begin to reduce our operating costs and we expect to demonstrate solid progress in cost management for the full year,” said Executive VP Lenard Liberman.