You might say this company is turning up the volume on Spanish radio. Spanish Broadcasting System (SBS) is one of the largest Spanish-language radio broadcasters in the US (along with
) with 20 stations in the US and Puerto Rico. Its radio stations serve such large markets as Chicago, Los Angeles, New York City, and Miami, reaching about half the US Hispanic population with music formats ranging from regional Mexican to Spanish tropical. In addition, the company operates website LaMusica.com, and several TV stations that offer original and syndicated Spanish-language programming under the Mega TV brand. Chairman and CEO Rául Alarcón Jr. controls about 80% of SBS.
SBS operates in 20 radio markets. Facilities include two stations in Los Angeles, two in New York, 11 in Puerto Rico, and three in Miami. Chicago and San Francisco each have one SBS radio station. The New York, Los Angeles, and Miami markets accounted for more than 60% of net revenue during fiscal 2013.
The company's revenue increased 10% in fiscal 2013 compared to fiscal 2012. SBS reported $153.8 million in revenue for fiscal 2013 after claiming about $139.5 million in fiscal 2012. Even with solid revenue numbers SBS's net loss increased to $88.5 million after the company reported a net loss of $87/285 million in fiscal 2012.
While its focus on the Spanish-speaking demographic has in the past helped SBS buck the trend of declining revenue that has afflicted others in the radio industry, that strategy has not saved the company from the effects of the recession. SBS has responded to declines in advertising by focusing on reducing operating costs at its stations.
The company's television growth strategy includes expanding their MegaTV operations into US Hispanic markets where SBS does not already have television programming distribution outlets.