YOU ARE HERE: LAT HomeCollections


Hispanic Broadcasting's Net Income Rises 41%; Outlook for Year Raised

November 02, 2002|Meg James | Times Staff Writer

Hispanic Broadcasting Corp. -- the nation's largest Spanish-language radio network, which is awaiting federal approval to merge with Los Angeles-based Univision Communications Inc. -- said Friday that its third-quarter profit rose 41%.

Hispanic Broadcasting's net income increased to $12 million, or 11 cents a share, from $8.5 million, or 8 cents, a year earlier, thanks to strong performance in Los Angeles and other key markets.

The Dallas-based company also raised its earnings fore- cast for the year to 40 cents to 41 cents a share, excluding expenses, up from its previous estimate of 38 cents to 40 cents a share.

The company's third-quarter revenue rose to $70.2 million, up 7% from $65.8 million a year ago.

If federal regulators approve the $2.1-billion merger, Univision would have a commanding market share in Spanish-language television, radio, Internet and billboards, as well as in its Latin music business.

Hispanic Broadcasting owns 55 radio stations, five of them in Los Angeles.

Univision's shares have declined about 40% this year, and the value of the Hispanic Broadcasting deal, announced in June, has fallen from its original price of more than $3 billion. The merger calls for each share of Hispanic Broadcasting common stock to be exchanged for 0.85 share of Univision common stock.

Univision is controlled by billionaire A. Jerrold Perenchio.

Executives of Univision and Hispanic Broadcasting say they expect the Federal Communications Commission and the Justice Department to approve the deal by year's end.

Shares of Hispanic Broadcasting rose 21 cents to $21.71 on the New York Stock Exchange on Friday. Univision shares fell 8 cents to $25.83, also on the NYSE.

Los Angeles Times Articles