Entravision Q3 Net Revenue Up 14%

On Thursday, Entravision Communications Corp. reported third quarter net revenue of $274,417,000, a 14% increase from $241,014,000 in the same period a year earlier.

Of the overall increase, $42.6 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 various acquisitions, 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 $6.1 million 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, and spectrum usage rights revenue.

In addition, the overall increase was partially offset by a decrease of $3.1 million 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 Q3 totaled $53.8 million, up 9% from $49.3 million in the prior-year period. Of the overall increase, $4.1 million was attributable to the digital segment and was primarily due to an increase in non-cash stock-based compensation.

Corporate expenses in the quarter totaled $13.3 million, up 40% from $9.5 million in the prior-year period. The increase was primarily due to an increase in non-cash stock-based compensation.

Commenting on the company’s earnings results, Chris Young, chief financial officer, said: “We achieved a record quarterly advertising revenue of $274.4 million, up 14% year-over-year, led by strength in our Digital segment, which now comprises 84% of total revenue. We continued to execute on our Digital transformation strategy during the quarter with the signing of two new partnerships with Match and Pinterest to further diversify our portfolio of digital solutions. While non-returning political revenue and sales mix contributed to the year-over-year decline in our consolidated EBITDA, we anticipate increased political spending ahead of the 2024 elections will benefit our Television and Audio segments and consolidated EBITDA in the quarters to come.”

Also on Thursday, the company’s board approved a quarterly cash dividend to shareholders of $0.05 per share on the company’s Class A and Class U common stock, in an aggregate amount of $4.4 million. The quarterly dividend will be payable on Dec. 29 to shareholders of record as of the close of business on Dec. 15, and the common stock will trade ex-dividend on Dec. 14.

Read the company’s report here.