Lower local and national sales were the culprit and weren’t offset by a 347% rise in digital segment revenue.
On Thursday, Entravision Communications Corp. reported that its television segment revenue for the three months ended March 31 dropped 9% to $34.5 million from $37.7 million in the same quarter a year earlier.
The television segment’s operating expenses were up 7% to $21.5 million
Digital segment revenue, however, shot up 347% — to $18.2 million from $4.1 million.
For the company as a whole (including its radio segment), 1Q net revenue was $66.8 million, a 16% increase from the year-ago quarter’s $57.5 million.
Commenting on the company’s earnings results, Walter F. Ulloa, chairman-CEO, said: “During the first quarter, we achieved revenue growth driven by increases in our digital media segment attributable to the acquisition of Headway. This growth in our digital media segment offsets decreases in both our television and radio segments, which were affected by decreases in local and national advertising revenue compared to 2017.
“We continued to build our digital footprint, while undertaking an extensive review of our business in order to more efficiently align operations and reduce costs.
“Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, and expanding our advertiser base to the benefit of our shareholders.”
At the same time, the company announced that its board of directors has approved the extension of its share repurchase program announced in August 2017 with a repurchase authorization of up to an additional $15 million of the company’s common stock, for a total repurchase authorization of up to $30 million. Under the new share repurchase program, the company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors.
Read the company’s report here.