Mexican Radio: Revenues Grow for KMVN Los Angeles

by

mexicoflag
I wish I was in Tijuana
Eating barbequed iguana
I’d take requests on the telephone
I’m on a wavelength far from home
I feel a hot wind on my shoulder
I dial it in from south of the border
I hear the talking of the DJ
Can’t understand just what does he say?

I’m on a Mexican radio.
I’m on a Mexican, whoa-Oh, radio
I’m on a Mexican radio.
I’m on a Mexican, whoa-Oh, radio

Mexican Radio by Wall of VooDoo

“Mexican Radio” indeed. In this case, Grupo Radio Centro (GRC).  The south-of-the-border broadcaster recently took over all of the programming and sales for Emmis Communications’ Los Angeles based station KMVN — and seems to be taking enormous strides since doing so.

GRC has just issued reports that it brought in 155.8 million pesos ($11.1 million) during the first quarter of 2009, an increase of  21.5 percent from the Ps. 128.3 million ($9.2 million) reported in the first quarter of 2008. The reason? Advertising spending.

GRC has been busy on their home ground outside of the United States.  While their efforts in Los Angeles with KMVN have experienced an income spike, their total revenues from broadcast have increased by almost four times that much! Radio Ink Magazine brings us the comprehensive  numbers:

Broadcasting income was up 79.8 percent, to 43.7 million pesos from 24.3 million, with most of that attributable to the gain in broadcast revenues. Net income came in at Ps. 14.7 million, compared to Ps. 810,000 a year before.

Not bad at all! Especially when you consider that out of the 15 stations owned and/or operated by GRC 11 of them are in Mexico City. Emmis isn’t doing badly off the deal either. GRC is paying out $7 million annually for the KMVN LA with an option to buy the station outright at any point during the seven year agreement for a cool $110 million. (Emmis retains the option of requiring them to purchase at that price during the final year of the agreement should they choose to do so.)

This is the type of news I love reporting, especially during the economic insanity gripping the planet. Think about it, an almost 80% increase in revenues. What business would not be overjoyed at that sort of increase?

Photo courtesy of Esparta, used under its Creative Commons license

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