A report on KXOS-FM's financial issues and Audience sizes.

[Y2kTheNewOldies]

Grupo Radio Centro reported a net loss of 183.2 million pesos for the entire year of 2018. The figure means a 28.8% increase in its losses, compared to 2017 of 142.2 million pesos, and this time it was also pressured by the financial and audience difficulties faced by the Californian subsidiary known as GRC LA, which in turn operates the Los Angeles KXOS-FM frequency with the commercial brand "Radio Centro 93.9 FM" of regional Mexican music.

Radio Centro (GRC) exposes in a report that its general operation of 2018 was impacted by internal factors such as the liquidation of personnel by fees, moving transmitters to another geographical location , plus the fulfillment of commitments already made years ago with banks and by Other external reasons , such as the performance of the Mexican economy, which in turn affected large consumer brands that have contracted airtime, and the fact that GRC LA is not able to attract more resources to achieve financial profitability.

"These increases (in costs, expenses and losses) are mainly attributed to the effect that resulted from the reclassification of the company's lease agreements, derived from the early adoption of the Standard 'IFRS 16 Leases' during the fourth quarter of 2017; for an increase in expenses for fees and services contracted, and for higher expenses incurred at the station in Los Angeles, California, "says the GRC report.

https://www.eleconomista.com.mx/emp...-de-Radio-Centro-en-Mexico-20190306-0063.html

The Quote is from the translated version of the Economist article.

 

[davideduardo]

https://www.eleconomista.com.mx/emp...-de-Radio-Centro-en-Mexico-20190306-0063.html

The Quote is from the translated version of the Economist article.

The losses in LA have been going on since they bought the station from Emmis; it has been about a $2 million dollar a year drag on the whole company. Add to that the fines imposed in Mexico for not building a national TV network that they bid on as well as litigation over a monopolistic practices charge by the federal government there and they have some real issues.

It would not surprise me to find that Meruelo would want to open up the hallway and join the station with KPWR again... just speculating.

 

[TheBigA]

They paid over $88 million for the station in 2012. That's a lot of money in today's radio environment.

 

[davideduardo]

They paid over $88 million for the station in 2012. That's a lot of money in today's radio environment.

Keep in mind that they LMAed the station for quite a while, and the LMA lease cost was applied to the purchase. So the real price was more like $60 to $65 million, which is in line with what EMF paid for its inferior technical facility.

 

[radio128]

My wish is that they become LA's new Breeze or Easy 93.9.

 

[TheBigA]

My wish is that they become LA's new Breeze or Easy 93.9.

Except they'd do it en Espanol.

 

[davideduardo]

Except they'd do it en Espanol.

Not likely. If Meruelo buys it, probably something additional in the rhythmic area. Spanish language radio is overly saturated in LA, with only a couple of viable formats available and about 15 FM signals doing it!

 

[MarkW]

I would love to see Meruelo purchase this station!! A rhythmic throwbacks format would be great!

 

[radiojomo]

I could see Meruelo selling KDAY to a foreign broadcaster, acquiring KXOS and moving the '90s/'00s hip-hop format to a stronger signal. I think it could be a hit considering KDAY hits a 1.2 with its really limited signal and would hit 25-54 quite nicely, given the demographic makeup of Southern California.

 

[davideduardo]

I could see Meruelo selling KDAY to a foreign broadcaster, acquiring KXOS and moving the '90s/'00s hip-hop format to a stronger signal. I think it could be a hit considering KDAY hits a 1.2 with its really limited signal and would hit 25-54 quite nicely, given the demographic makeup of Southern California.

That's an interesting and strong idea. Makes a lot of sense, can be monetized and there is a market.