Even start-up Mega TV saw revenues decline in Q2, but not nearly as much as the radio group at Spanish Broadcasting System.
Net revenues for the entire company were down 18% to $37.1 million. Operating income before depreciation and depreciation (OIBDA) rose by 37% to $11 million, due to improvement at the corporate level and a smaller loss for the TV operation.
Radio revenues declined 19% to $33.2 million. OIBDA was down only 2% to $15.8 million.
TV revenues were down 7% to $3.9 million. The OIBDA loss was $2.4 million, a 40% improvement from a loss of $4 million a year earlier.
“During the second quarter, we continued to implement our multi-platform growth strategy, while maintaining a disciplined approach to cost-management. Our overall results were impacted by the continued nationwide advertising slowdown, offset in part by our success in reducing expenses via our restructuring plan. Despite current macro-economic challenges impacting all media, we remain focused on further strengthening our content and delivering valuable audiences to national and local advertisers. Given the strength of our brands and the continued expansion and growing influence of the Hispanic population, we remain optimistic about our ability to return to top-line growth as the economy recovers,” said a statement by Chairman and CEO Raúl Alarcón. The company no longer conducts quarterly Wall Street conference calls.
On the bottom line, SBS’ posted net income of $459,000, a considerable improvement from a loss of $249 million a year earlier. However, that was before figuring in dividends on the company’s Series B preferred stock, leaving a net loss applicable to shareholders of $2 million. That was a loss of three cents per share, vs. a loss of $4.09 a year ago.