Spanish Broadcasting System’s net revenue was $32.1 million compared to $30.8 million for Q1 2011—an increase of $1.3 million or 4%. Radio net revenue increased $1.3 million or 5%, primarily due to local sales, special event revenue and barter sales, offset by decreases in national and network sales. The increase in local sales happened in their New York, LA and San Francisco markets. The increase in special event revenue occurred mainly in their Puerto Rico and Miami markets.
Listen to the audio, below:
[audio:SBS-Q1-051512.mp3|titles=Raul Alarcon, SBS CEO]
The increase in barter sales occurred throughout most SBS markets. The decrease in national and network sales occurred in all of our markets. Our television segment net revenues were flat, primarily as a result of increases in paid-programming, other revenues, and barter sales, offset by decreases in local spot sales and integrated sales.
Radio station operating expenses increased mainly due to increases in special events expenses, barter expense, local commissions and compensation and benefits, offset by decreases in legal settlements and music license fees. The television segment decreased $1.0 million or 54%, primarily due to the decrease in station operating expenses of $1.0 million.
Television station operating expenses decreased primarily related to decreases in originally produced programming, broadcasting rights fees, professional fees and advertising and promotions. Our corporate expenses increased by $0.4 million or 22%, primarily a result of an increase in compensation and benefits related to bonuses for the successful 2012 refinancing of our senior credit facility, offset by a decrease in professional fees.
Operating income totaled $4.8 million compared to $4.1 million for the same prior year period, representing an increase of $0.7 million or 17%. This increase was primarily attributed to the increase in net revenues.
“Our first quarter financial results improved considerably over the prior year,” commented Raul Alarcon, Jr., Chairman and CEO. “Moreover, we have continued to strengthen our operations through strategic investments in our content, marketing and digital resources. We remain committed to employing a disciplined approach to managing our operations, with the goal of driving improved financial results.”
Looking ahead, Alarcon says the advertising market remains volatile, but our brands remain strong across our market footprint and we are continuing to build on our revitalized sales force. We remain very optimistic about our long-term outlook given the ongoing dramatic growth of the Hispanic population and the increasing need for advertisers to pursue this important and influential audience.”