Spanish Broadcasting System reported a tough second quarter for 2025, marked by declining revenue and widening losses, despite ongoing cost cuts and digital investments.
On Monday (Sept. 22), the company confirmed financial results initially released earlier this month in a financial reporting package that Q2 net revenue fell to $34.4 million, down 14% from roughly $40 million in the same quarter last year. Operating expenses dropped 10% to $25.9 million, thanks to lower event, programming, and music licensing costs, along with reduced on-air talent pay and affiliate payments.
However, expense cuts failed to offset the revenue decline. Station operating income (non-GAAP) dropped 23% year-over-year to $8.5 million. Net loss reached $6.2 million, or $0.48 per share — a 30% increase from the year prior.
“We continued executing our strategic plan amid a sluggish economy,” said Chairman and CEO Raúl Alarcón in a press release. “We’re investing in growth initiatives while driving down operating costs. Our strong audience shares and multiplatform content strategy are enhancing brand visibility and positioning SBS as a next-gen media leader for U.S. Hispanics.”
SBS also noted a deeper Q2 net loss of $4.4 million, compared to a loss of $346,000 in Q2 2024. For the first half of 2025, revenue totaled $62 million, down 16% from $73.7 million in the same period last year. Losses rose in line with falling revenues.
The company cited ongoing softness in broadcast ad spending, across local, national, and network markets, as well as a decline in live and special event revenue as key challenges.
SBS has been navigating a weak media and radio advertising environment while expanding its digital and streaming efforts, all while supporting its traditional broadcast business.
Alarcón highlighted progress in the company’s digital platforms, particularly LaMusica, a Latin music and entertainment app. Unique users for LaMusica grew 18% in Q2, with rising engagement driven by SBS’s on-air talent and content creators. He also pointed to continued audience gains at KROI-FM Houston, and strong early performance from a the “Nandy & Cristy” morning show at WSUN-FM Tampa.
Looking forward, SBS faces a major financial hurdle: more than $300 million in senior secured notes coming due in March 2026. The company disclosed it currently lacks committed financing to fully repay the debt. Inside Radio