Entravision 1Q Net Revenue Up 21%

On Thursday, Entravision Communications Corp. reported first quarter net revenue of $239,006,000, a 21% increase from $197,172,000 in the same period a year earlier.

Of the overall increase, $42.8 million was attributable to the digital segment and was primarily due to advertising revenue growth from the company’s digital commercial partnerships business, and due to its variable interest entity (VIEs), which did not contribute to financial results in the digital segment in the comparable period.

The overall increase was partially offset by a decrease of $600,000 attributable to the television segment, primarily due to decreases in political advertising revenue and national advertising revenue, partially offset by increases in local advertising revenue, spectrum usage rights revenue and retransmission consent revenue.

In addition, the overall increase was partially offset by a decrease of $400,000 attributable to the company’s audio segment, primarily due to a decrease in political advertising revenue, and decreases in local and national advertising revenue.

Operating expenses in the first quarter of 2023 totaled $52.6 million, up 20% from $43.9 million in the prior-year period. Of the overall increase, $6.3 million was attributable to the digital segment and was primarily due to the VIEs, which did not contribute to financial results in the digital segment in the comparable period, an increase in salary expense, an increase in non-cash stock-based compensation, and an increase in expenses associated with the increase in digital advertising revenue

Additionally, of the overall increase in operating expenses, $900,000 was attributable to the television segment primarily due to an increase in non-cash stock-based compensation, increased rent expense in the temporary office space until the move to our new permanent offices is completed, and an increase in bad debt expense.

Corporate expenses in the first quarter of 2023 totaled $10.5 million, up 20% from $8.7 million in the prior-year period. The increase was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022, an increase in professional service fees, and an increase in audit fees.

Commenting on the company’s earnings results, Chris Young, interim chief executive officer and chief financial officer, said: “Entravision saw continued growth in the first quarter of 2023, with revenue up 21% year-over-year. Growth for the quarter was led by our digital segment, which is impressive given difficult macro conditions and decreased political advertising revenue from last year.”

Young continued: “With a solid balance sheet in place, strong free cash flow generation, and an acute focus on expense management, Entravision is well-equipped to navigate the current economic environment. As we progress through additional quarters, we will continue to seek out opportunities, including acquisitions, that will enhance our digital offerings and strengthen our ability to compete internationally.”

Read the company’s report here.