The Spanish-language station owner says the decrease to $40.4 million is primarily due to nonrecurring channel modifications that weren’t offset by increases in national and political advertising as well as higher retransmission consent fees.
QUARTERLY REPORT
Entravision 3Q TV Revenue Dips 7%
On Thursday, Entravision Communications Corp. reported third quarter television segment revenue of $40.4 million, down 7% from $43.4 million in the same quarter a year ago.
The company said the television segment revenue decrease was primarily attributable to approximately $5.5 million of revenue associated with television station channel modifications made by the company in order to accommodate the operations of a telecommunications operator included in the 2015 period, and which revenue did not recur in 2016, and a decrease in local advertising revenue.
This decrease in the television segment was partially offset by an increase in national advertising revenue, an increase in political advertising revenue, which was not material in 2015, and an increase in retransmission consent revenue.
Digital segment revenue grew 15% from $5 million to $5.7 million and was primarily attributable to increases in national and local revenue.
Entravision has 54 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.
For the company as a whole, net revenue decreased 5.8% to $65.3 million from $69.3 million a year ago. Contributing to the decline was a decrease of $1.7 million in the radio segment primarily attributable to a decrease in local advertising revenue, partially offset by an increase in political advertising revenue, which was not material in 2015.
BRAND CONNECTIONS
Commenting on the company’s earnings results, Walter F. Ulloa, chairman-CEO, said: “During the third quarter, we faced challenging comparisons to last year’s third quarter. We continued to grow our core television advertising revenue (excluding retransmission consent revenue and political advertising revenue), but these increases were offset by decreases primarily attributable to the loss of non-advertising revenue from a telecommunications operator.
“Additionally, we continued to grow our digital segment revenue and build our digital footprint through Pulpo Media, which provides us with an integrated platform to connect advertisers and marketers with Latino audiences. Looking ahead, we remain well positioned to build on our success in further attracting Latino audiences, expanding our advertiser base and monetizing our reach to the benefit of our shareholders.”
Read the company’s report here.
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