Entravision 3Q Rev Skyrockets On Auction $

On Thursday, Entravision Communications Corp. reported that its television segment revenue for the three months ended Sept. 30 dropped 9% to $36,547,000 from 40,363,000 in the same quarter a year ago, partially due to lower political ad revenue this year. However, the company made $264 million from sale of spectrum in the FCC’s auction, money that doesn’t fall under its TV segment.

Digital segment revenue grew 198% to $17.1 million from $5.8 million, partly due to its acquisition of 100% of the stock of several entities collectively doing business as Headway.

For the company as a whole, 3Q net revenue was up 412% to $334.5 million. That broke out to:

• Advertising and retransmission revenue: Up 8% to $70.6 million.
• Spectrum usage rights revenue: $264 million which was $0 in the year-ago quarter.

Net income shot up 2,803% to $157.2 million

Commenting on the company’s earnings results, Walter F. Ulloa, chairman-CEO, said: “During the third 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 offset decreases in our television and radio segments, which were affected by decreases in local and national advertising revenue and the loss of political advertising revenue compared to 2016.

We also improved our free cash flow and net income over the third quarter of 2016, due primarily to our receipt of proceeds related to our participation in the Federal Communications Commission auction for broadcast spectrum. We continued to build our digital footprint and, looking ahead, we remain well positioned to build on our success in further attracting Latino audiences, expanding our advertiser base to the benefit of our shareholders.”

The company also announced today that its board of directors has approved a quarterly cash dividend to shareholders of $0.05 per share of the company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on Dec. 29 to shareholders of record as of the close of business on Dec. 14, and the common stock will trade ex-dividend on Dec. 13. As previously announced, the company currently anticipates that future cash dividends will be paid on a quarterly basis.

Entravision has 56 primary television stations and is the largest affiliate group of both the Univision and UniMás television networks. Entravision also owns and operates 49 primarily Spanish-language radio stations, as well as the Entravision Audio Network and Entravision Solutions, a national spot and network sales and marketing organization representing Entravision’s owned and operated, as well as its affiliate partner, radio stations.

Entravision’s Pulpo digital advertising unit is the No. 1-ranked online advertising platform in Hispanic reach according to comScore Media Metrix, and Entravision’s digital group also includes Headway, a leading provider of mobile, programmatic, data and performance digital marketing solutions primarily in the United States, Mexico and other markets in Latin America.

Read the company’s report here.