The following is a summary of the Spanish Broadcasting System, Inc. (SBSAA) Q3 2023 Earnings Call Transcript:
Financial
Q3 revenues of $35 million, down 8% YoY.
Operating expenses increased by 4%.
Station operating income was $10 million, down 28% YoY.
Adjusted OIBDA was $6.7 million, down 36% YoY.
Cash on hand is approximately $7 million.
Capex projected to be $2.4 million to $2.7 million for FY2023.
Business
10% YoY increase in aggregate audience.
Orlando and Tampa stations expected to be profitable in 2023.
Leading Hispanic Audio Network.
Q2 audience of 3.3 million unique listeners per month.
Exploring new digital revenue streams.
Gross digital sales reached $8.4 million year-to-date.
Anticipated positive adjusted OIBDA for Orlando and Tampa in 2023.
Financial Performance:
Spanish Broadcasting System reported Q3 revenues of $35 million, down by 8% from the same period last year, impacted by insurance categories and decreases in local sales, digital, and network sales.
Operating expenses increased by 4% due to costs related to barter expense, compensation and benefits, digital sales costs, and music license fees.
Station operating income was $10 million, down by 28% from the previous year, while adjusted OIBDA was $6.7 million, a decrease of 36% from the same period last year.
Spanish Broadcasting System has approximately $7 million cash in hand and access to a $6 million revolver for required operations.
Capital expenditure is projected to be between $2.4 million to $2.7 million for the full fiscal year of 2023, with cash taxes predicted to range between $1.8 million to $2.2 million.
Business Progress:
SBS continued to expand its multi-platform reach, increasing its aggregate audience by 10% compared to Q3 of the previous year.
The company's Orlando and Tampa audio stations are expected to be profitable for 2023.
The AIRE Radio Networks remains the leading Hispanic Audio Network across the country.
SBS focuses on identifying new digital revenue streams and increasing their CPMs on existing digital offerings, leading to a Q2 audience of 3.3 million unique listeners per month.
SBS terminated its agreement with Voz and is seeking monetary damages, amended the purchase agreement for the KROI radio station, and is actively looking to sell its television operations and real estate assets.
Gross digital sales reached $8.4 million year-to-date as of September, making up approximately 7% of gross revenues.
For 2023, SBS expects Orlando and Tampa operations combined to have positive adjusted OIBDA.
More detailed: SPANISH BROADCASTING SYSTEMS INC IR
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