Spanish Broadcasting System on Wednesday reported lower third-quarter revenue, but the broadcaster still sees a few rays of sunshine poking through what’s otherwise a thick cover of financial clouds.
The Miami-based company posted net revenue of $31.3 million, which represents a 13% decline from the same period a year ago. SBS cited decreases in local, national and network advertising and said those losses were partly offset by gains in digital and barter sales. Operating expenses, meanwhile, fell 12% to $21.4 million, reflecting reduced compensation, programming costs, commissions and affiliate payments. Station Operating Income and Adjusted Operating Income Before Depreciation and Amortization — both non-GAAP measures — also fell. SOI fell to $9.8 million, down 14% on a year-over-year basis, and Adjusted OIBDA fell 15% to $7.9 million.
“During the third quarter, we continued implementing a range of initiatives designed to strengthen and diversify our revenue sources while aggressively reducing operating costs,” Chairman and CEO Raúl Alarcón said in a statement that accompanied the Q3 results. “Despite the very challenging economic environment impacting our industry this year, we believe the strategic steps underway will position us to deliver significantly improved results as the overall economy regains its footing.”
SBS reported sequential increases from Q1, with net revenue up 5%, Station Operating Income up 35% and Adjusted OIBDA up 61%.
One of the company’s primary challenges remains its debt load. SBS has more than $309 million in 9.75% senior secured notes due next year, and its total obligations now exceed $405 million (down from $417 million at the end of 2024), which means the company’s shareholders have negative equity. As of Wednesday’s close, SBS shares were trading at 7 cents each.
On the digital side, operations continued to expand in Q3. LaMusica’s Monthly Active Uniques rose 13.4% from a year earlier, and new distribution partnerships — including a Roku rollout that propelled a 34% quarter-to-quarter increase in new users — broadened the company’s streaming reach. SBS says it now produces nearly 70 hours of daily live video for digital platforms with minimal incremental cost.
For the first nine months of 2025, SBS posted net revenue of $93.3 million, down 15% from the prior year. The company cited declines in special events and core advertising categories, as well as non-cash impairment charges tied to uncertain market conditions and earlier wildfires in Los Angeles. Adjusted OIBDA for the period fell 32% to $15.1 million.
SBS completed the sale of its Puerto Rico television stations on Aug. 15, generating $5.7 million in proceeds and a $2.8 million gain. The company is still pursuing a broader sale of its remaining TV and real estate holdings.
