Revenue was down for Spanish Broadcasting System during the second quarter of 2012, and operating income took an even bigger hit as the decreasing revenues occurred in an environment in which company expenses were going in the opposite direction.
Revenues were down only modestly – radio properties decreased from $31.222M to $30.288M, a loss of 3%; and television was down from $4.405M to $4.323M, a loss of 2%, resulting in a overall loss of 3% to $34.611M.
The harsher numbers came on the operating income side. SBS reported radio OIBDA at $14.294M, down 16% from $17.007 the year prior; television actually improved by 37%, but that meant only that its losses weren’t as severe. Instead of coming in $1.906M in the red, it was only $1.192M in the red this time. Overall, the company lost 12% to $11.466M.
“During the second quarter, we continued to execute our plan to strengthen our multi-media platform, while carefully managing our costs,” commented Raul Alarcón, Jr., Chairman and CEO. “The advertising environment was mixed, but we were able to offset some of the weakness at the national level through increased local and interactive sales. We also made significant progress in reducing the operating loss at our television operations. Looking ahead, our station brands remain strong, and we are continuing to expand our interactive footprint and build on our revitalized sales force. We also remain well positioned to attract our share of political dollars in the second half of the year given our leading audience shares in the nation’s top-ten Hispanic markets.”
Radio results were impacted by weakness in national and network revenue streams, but barter, interactive and local helped stem to bleeding. The company was pleased to report increased local sales in bothNew YorkandLos Angeles.
SBS said that the loss in OIBDA at its radio segment was the results of a $900K decrease in national income coupled with a $1.8M increase in expenses. It attributed the expense increase to “…local and national commissions, advertising, barter expense, and compensation and benefits, offset by a decrease in music license fees.”