SBS Boosts Bottom Line With Cost Cuts and Puerto Rico Sale
So, here’s a story that’s been drawing attention in the broadcasting world—Spanish Broadcasting System, or SBS, has managed to more than double its third-quarter net income this year, even though overall revenue went down. It’s one of those situations where the numbers look mixed at first glance, but once you dig in, you see how strategy and timing played a big role.
What really drove the improvement was a combination of aggressive cost-cutting and a notable asset sale. SBS trimmed its operating expenses significantly, bringing them down from just over $27 million last year to about $24.2 million this year. That reduction alone helped cushion the impact of a revenue dip, as total revenue slid from roughly $35.7 million to $31.3 million. Even with that decline, the company still managed to steer the quarter in a positive direction.
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A big part of that positive shift came from the completed sale of SBS’s Mega TV operation in Puerto Rico, which closed in August. That transaction delivered a gain of about $2.83 million—a major lift at a moment when traditional advertising markets continue to feel strain. With digital and political ad dollars not offering much relief this year, the company leaned into the assets it could move, and it paid off.
Now, to be clear, not every metric moved in the right direction. Operating income slipped from $8.7 million to $7.08 million, and Station Operating Income fell as well. But the overall picture still ended up brighter because net income rose sharply, landing at $1.39 million, compared to about $547,000 during the same period last year. For a company navigating a tough economic environment, doubling net income is nothing to overlook.
SBS, which operates sixteen radio stations across major markets like New York, Florida, California, Illinois, and Puerto Rico, also runs AIRE Radio Networks. That network now feeds programming to more than 290 affiliates, keeping SBS positioned as a major player in Latino-focused audio.
CEO and founder Raúl Alarcón Jr. emphasized that the company remains committed to strengthening its assets and reinforcing its role as a premier destination for Latino audiences—across both traditional broadcasting and digital platforms. He acknowledged that this year’s broader economic challenges have been tough on the entire industry, but he expressed confidence that the strategic steps being taken now will support stronger results once the economy stabilizes.
Alarcón is expected to review the Q3 results in more detail during a conference call with analysts, investors, and bondholders on December 22. For now, though, SBS’s message is clear: careful expense management and timely decisions can still move the needle, even in a difficult year.
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