Entravision’s 4Q TV Revenue Up 37%
Entravision Communications Corp. reported that its television segment revenue for the three months ended Dec. 31 increased 37% to $50.5 million; it was $36.9 million in the same quarter a year earlier.
That television revenue was powered by record political advertising and retransmission consent revenue, partially offset by decreases in local and national advertising revenue and revenue from spectrum usage rights. The decrease in local and national advertising revenue, it said, “was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences.”
Digital segment revenue rose by 424% — to $105 million from $20 million and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic.
For the company as a whole (including its radio segment), 4Q net revenue was $171.7 million, a 142% increase from the year-ago quarter’s $70.8 million.
Commenting on the company’s earnings results, Walter F. Ulloa, chairman-CEO, said: “Entravision capped off a very challenging year with an exceptionally strong fourth quarter. In addition to achieving record political revenues in the fourth quarter of 2020, our digital business expanded significantly and was up 424% over the prior-year period due in large part to our acquisition of a majority interest in Cisneros Interactive. Importantly, all three of our business segments grew in the fourth quarter of 2020 compared to the prior year, positioning us well for 2021.
“This past quarter, as we focused on streamlining our cost structure to maintain the stability of our business, we also made great progress in strengthening our digital segment. In November, we appointed industry veteran and member of our board of directors Juan Saldívar as our new chief digital, strategy and accountability officer. Juan’s appointment followed a number of strategic moves in 2020 to strengthen our portfolio of digital assets, including both the formation of Entravision Digital and our majority investment in Cisneros Interactive. We will continue to build upon our digital offerings, while also maintaining and strengthening our television and radio segments.”
Read the company’s report here.