Hispanic Broadcasting Reports Lower Profit

Spanish-language radio company Hispanic Broadcasting Corp. posted lower third-quarter earnings because of an advertising slump and increased promotion and programming costs in key U.S. Latino markets.

Earnings before interest, tax, depreciation and amortization fell 23.4% to $21.7 million from $28.3million in the year-ago period.

In the third quarter, Hispanic Broadcasting’s same-station net revenue rose 1.7% to $61.7 million while broadcast cash flow fell 14.5% to $26.1 million.

The Dallas-based company owns and operates more than 40 radio stations in 12 of the top 15 Latino markets in the United States.

It also warned that fourth-quarter results would be lower than forecast as the U.S. economy and ad markets weaken in the aftermath of the Sept. 11 terrorist attacks.

However, the company said it will complete the acquisition of two radio stations in Phoenix this week in a further effort to increase its market share and lure new advertisers.