Mega-TV (WSBS Miami) is still a small part of Hispanic radio specialist Spanish Broadcasting System, but it was the star performer in Q2, with revenues up 87% to 2.6 million bucks. The operating loss for the TV segment improved to 2.5 million from a loss of 5.3 million a year ago.
So, what will it take to become profitable? In his conference call with analysts, CEO Raul Alarcon wouldn't project just when Mega TV will break even, but he said it will take a little over 20 million in annual ad revenues to reach that point. He noted that the Hispanic television ad market in Miami is over 175 million. SBS is not in the market to buy more TV stations, but Alarcon said there is syndication potential for some of the programming being produced by Mega TV – and he hinted that a major distribution deal is in the works.