Spanish Broadcasting System

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SBS lost nearly $16.9 million in the six months ended March 26, despite revenue that grew 25.1%, to $53.9 million, and broadcast cash flow (BCF) that rose 31.1%, to $29.1 million, compared with the same period a year earlier.

The loss was attributed to a one-time severance payment of $10.2 million to buy an annuity for two retired executives, as well as the early retirement of several notes.

However, the Miami-based radio group reported a profit of $1.5 million on revenue of $24.9 million (up 32.5%) for the three months that ended this past March 26. Broadcast cash flow rose 42.7% in that period, to $12.7 million. Fueling the gains were higher ad rates and results from two of eight radio stations in Puerto Rico that SBS bought on Jan. 14.

Also last Monday, SBS announced that it had purchased four FMs and two AMs from companies chaired by Marcos Rodriguez.

The $165.2 million cash-and-stock deal gets SBS into San Francisco and Dallas (the nation's 10th-largest Hispanic market) for the first time, and increases its station holdings in Los Angeles and San Antonio (for details see "Changing Hands," page 57).

Wall Street reacted to the news by bouncing SBS' stock price up 11.2 last Tuesday to close at $19.875.