Entravision 3Q Net Revenue Up 21%

On Thursday, Entravision Communications Corp. reported third quarter net revenue of $241,014,000, a 21% increase from $199,008,000 in the same period a year earlier.

Of the overall increase, approximately $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 investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, neither of which contributed to net revenue in the comparable period ended Sept. 30, 2021.

In addition, of the overall increase, approximately $0.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue.

The overall increase was partially offset by a decrease of approximately $0.8 million attributable to the television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of its Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on Dec. 31, 2021. The decrease in television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue.

Operating expenses in the third quarter of 2022 totaled $49.3 million, up 14% from $43.1 million in the prior-year period. Of the overall increase, approximately $5.9 million was attributable to the digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and the investment in a variable interest entity during the third quarter of 2022 and the acquisition of 365 Digital during the fourth quarter of 2021, which did not incur operating expenses in the comparable period.

Cost of revenue in the third quarter of 2022 totaled $157.1 million, up 26% from $124.3 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from digital commercial partnerships business, and due to investment in a variable interest entity during the third quarter of 2022 and the acquisition of 365 Digital during the fourth quarter of 2021, neither of which incurred cost of revenue in the comparable period ended Sept. 30, 2021.

Commenting on the company’s earnings results, Walter F. Ulloa, chairman-CEO, said: “Entravision continued to see progress in the third quarter of 2022, with revenue up 21% versus the prior-year period. Adjusted EBITDA also improved double-digits, increasing 12% year-over-year. Entravision’s strength throughout the quarter was again driven by our digital segment, where revenue improved 29% versus the third quarter of 2021. In our television and audio businesses, political ad spend, in particular, continued to perform strongly.”

Ulloa continued: “Entravision’s solid performance in the third quarter, together with our progress year-to-date, demonstrates the resiliency and growth of our business in a tough macro environment. We continue to strategically expand across the globe and now have operations in 40 countries across five continents in service of more than 7,000 clients. We are thoughtfully positioning our digital teams in emerging economies where Entravision’s unique offerings have a key first-mover advantage and where a critical mass of connected consumers exists alongside a growing advertising industry. We remain optimistic in finding multiple growth opportunities around the world for our digital business and look forward to sharing our progress as we continue to grow and expand globally.”

Read the company’s report here.