Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, "During the third quarter, we achieved revenue growth primarily driven by increases in political advertising, core advertising and retransmission consent revenue. The increase in our political advertising revenue reflects the importance of our media platforms in reaching Latino voters. In addition, our television segment benefited from revenue growth generated from a more diversified base of advertising categories. Our audience shares remain strong in the nation's most densely populated Hispanic markets, and we believe we are well positioned to benefit as the U.S. Hispanic market continues to expand and advertisers increasingly recognize the importance of reaching our target audience."
Financial Results
Three-Month Period Ended September 30, 2012 Compared to Three-Month Period Ended September 30, 2011 (Unaudited) Three-Month Period Ended September 30, ------------------- 2012 2011 % Change ---- ---- -------- Net revenue $58,486 $50,115 17% Operating expenses (1) 32,886 31,203 5% Corporate expenses (1) 4,465 3,885 15% Depreciation and amortization 4,013 5,015 (20)% Operating income (loss) 17,122 10,012 71% Interest expense, net (8,661) (9,444) (8)% Income (loss) before income taxes 8,461 568 NM Income tax (expense) benefit (1,228) (1,952) (37)% ------ ------ Net income (loss) $7,233 $(1,384) NM ====== ======= (1) Operating expenses and corporate expenses are defined on page 1.
Net revenue increased to $58.5 million for the three-month period ended September 30, 2012 from $50.1 million for the three-month period ended September 30, 2011, an increase of $8.4 million. Of the overall increase, $7.3 million came from our television segment and was primarily attributable to increases in political advertising revenue, which was not material in 2011, core advertising revenue and retransmission consent revenue. Additionally, $1.1 million of the overall increase came from our radio segment and was primarily attributable to increases in core advertising revenue and political advertising revenue, which was not material in 2011.
Operating expenses increased to $32.9 million for the three-month period ended September 30, 2012 from $31.2 million for the three-month period ended September 30, 2011, an increase of $1.7 million. The increase was primarily attributable to an increase in expenses associated with the increase in net revenue, an increase in bad debt expense and an increase in salary expense.
