Spanish Broadcasting System, the Miami-based multimedia broadcasting company superserving Latino audiences in the mainland U.S. and Puerto Rico, enjoyed a 4% revenue gain in the second quarter of 2022. However, that growth was tempered by year-over-year declines at its television division.
For the quarter, SBS’s net revenue grew to $35.05 million, from $33.05 million.
However, adjusted OIBDA, a popular non-GAAP measure used by SBS, increased for Radio to $11.42 million from $15.6 million.
Still, the overall revenue gain offset a 21% revenue decline at the unit that includes MegaTV, falling to $2.47 million from $3.12 million as an adjusted OIBDA loss widened to $1.33 million from $493,000. The TV segment decline was attributed to lower national, local, barter and subscriber related revenues.
With a focus on the future, the revenue increase assisted SBS in a quarter highlighted by investment — namely, the launch and build-out of new “El Zol”-branded Latin Contemporary FMs serving Orlando and Tampa-St. Petersburg, respectively. The Orlando launch, rocked by claims of sabotage and allegedly racist actions from SBS lobbed against WPYO’s former operator (Cox Media Group), has proven immediately successful. The Tampa launch will likely require more time and effort against Beasley Media Group’s market stalwart WYUU “Maxima 92.5.”
The cost associated with the new Central Florida radio operation, in addition to digital infrastructure and personnel and “unique Spanish-language programming talent and content,” led SBS to experience a Q2 2022 net loss of $2.58 million ($0.32 per share), swinging from Q2 2021 net income of $4.37 million ($0.58).
Year-over-year comparisons should also take into account that SBS’s Consolidated Adjusted OIBDA includes some $2 million in federal Paycheck Protection Program (PPP) proceeds received. They were allocated as follows: Radio — $1.6 million, Television — $0.3 million and Corporate — $0.1 million.
“The second quarter represented a period of notable investment in our business as we work to integrate our newly acquired Tampa and Orlando stations while also building on the strengths of our digital platforms,” said SBS founder and Chairman/CEO Raúl Alarcón Jr., in prepared comments ahead of a Thursday earnings call for investors and analysts. “Both our consolidated and radio revenues increased this quarter as we continue to execute our sales strategies, while making the requisite targeted investments commensurate with insuring our position as the leading Spanish-language audio and digital platform in the nation.”
To that end, SBS made what Alarcón calls “significant operational progress in the quarter,” led by the launch of “El Zol” in Tampa Bay and in Orlando.
