Spanish Broadcasting Reports 2nd Quarter Results

Spanish Broadcasting System Inc. posted modest gains for the second fiscal quarter compared to previous years.
Net revenues increased by 3% from $34.8 million last year to $35.9 million this year. EBITDA, however, decreased 29% from $16.3 million to $11.5 million. The company said that these results exceeded expectations and credit the gain to SBS’ new station in Los Angeles, KXOL. A barter agreement with AOL Time Warner and start-up stations in Dallas, San Antonio, San Francisco and Los Angeles also contributed to revenue.
Expenses from establishing and promoting the new stations and loss of advertising dollars in the country’s general downturn decreased the company’s cash flow and operating margins. However, the company expects that strong ratings for its stations in New York, Los Angeles, Miami and Chicago will help as the economy turns around.