Entravision 4Q TV Rev Down 6%, Year Is Flat

On Wednesday, Entravision Communications Corp. reported fourth quarter television segment revenue of $42,705,000, a 6% decrease from $45,373,000 in the same period a year earlier.

For the full year, TV revenue was $156,994,000, basically flat to 2012’s $156,839,000.

Net revenue for the company as a whole dropped 6% in the 4Q to $60,093,000 and remained flat for the full year at $223,916,000.

Of the 4Q overall decrease, $2.7 million was generated by the television segment and was primarily attributable to a decrease in political advertising revenue, which was not material in 2013, partially offset by increases in local advertising revenue and retransmission consent revenue.

Additionally, $1.0 million of the overall decrease was generated by the radio segment and was primarily attributable to a decrease in political advertising revenue, which was not material in 2013, partially offset by an increase in local advertising revenue.

Operating expenses increased to $35.9 million for the 4Q from $33.7 million from the year-earlier period, an increase of $2.2 million. The increase was primarily attributable to an increase in performance-based commissions and bonuses associated with the increase in local revenue, and an increase in salary expense.

Net income for the 4Q was $9,521,000, up 24% from $7,697,000 in the year-ago quarter.

Commenting on the company’s earnings results, Walter F. Ulloa, chairman-CEO, said: “During the fourth quarter, we achieved continued growth in core advertising revenue (excluding retransmission consent revenue and political advertising revenue) as our television segment once again outperformed the television broadcast industry. Continuing the trend of the last several years, we also experienced an increase in retransmission consent revenue.

“Nonetheless, our improved core revenue performance was offset by decreased political revenue, which benefited from the presidential election last year, and was not material in 2013. As a result, net revenue was lower in the quarter.  However, we improved our net income over the fourth quarter of 2012 as we benefited from the successful refinancing of our debt.

“Also for the year 2013, we are particularly pleased to have achieved nominal revenue growth over 2012, during which we benefited from a record $17 million in political advertising revenue. 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.”