Hispanic Broadcasting Net Income Drops 40%

Hispanic Broadcasting Corp., the top Spanish-language radio broadcaster in the United States, on Monday reported its first-quarter net income declined 40%, hurt by a weak advertising market, and lowered its earnings estimates for the year by one-third.

Dallas-based Hispanic Broadcasting, which owns or operates 47 radio stations in 12 out of the top 15 U.S. Latino markets, had net income of $3.6 million, or 3 cents a share, compared with net income of $5.2 million, or 5 cents a share, in the first quarter of 2000.

Analysts on average expected the company to earn 4 cents a share, according to market research firm First Call/Thomson Financial. Net revenue for the company rose 2.7% to $47.8 million from $46.5 million a year ago.

For the year, net income was revised lower to $31.6 million, or 29 cents per diluted share, from a previous estimate of $47.5 million, or $43 cents a share.

The company’s after-tax cash flow, a closely watched measure for media companies, dropped 4.5% to $13.5 million, or 12 cents a share, compared with $14.2 million, or 13 cents a share, in the year-ago quarter.

Shares of Hispanic Broadcasting closed up $1.68, or 7.5%, at $23.97 on the New York Stock Exchange, nearly 50% below its 52-week high of $43.25.