Hispanic Broadcasting Posts 2% Rise in Profit

Hispanic Broadcasting Corp.’s second-quarter profit rose 2% as more people listened to stations owned by the largest U.S. Spanish-language radio broadcaster. The company’s shares rose 7.1%.

Net income rose to $10.4 million from $10.2 million a year earlier, and per-share profit of 9 cents was unchanged. Sales rose 4.1% to $68.6 million, the company said in a statement.

Latinos, targeted by both the company and Univision Communications Inc., which is buying Hispanic Broadcasting, are the fastest-growing U.S. demographic group. Hispanic Broadcasting said its Los Angeles, Houston, San Diego and Las Vegas radio stations are listened to by more adults age 25 to 54 than any rival.

“We’re feeling pretty bullish about the second half of this year and especially 2003,” Chief Executive McHenry Tichenor said during a conference call with analysts. Still, he said “financial performance in the second quarter was not up to our standards,” citing increased competition.

The Dallas-based company forecast profit of 11 cents to 12 cents a share and a 6% to 8% rise in third-quarter sales. It still expects 2002 profit of 38 cents to 40 cents. The forecasts exclude merger-related costs.

Hispanic Broadcasting shares rose $1.30 to $19.70 in New York Stock Exchange trading. They have fallen 23% this year.

Univision, which agreed in June to buy Hispanic Broadcasting for stock then valued at $3.5 billion, rose $1.85, or 8.4%, to $23.91, also on the NYSE.