Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Mixed Q4 results. Total company Q4 revenue of $320.1 million, an increase of 8.0%, was better than our $309.7 million estimate, driven by 19% growth in its Digital businesses. Both TV and Radio declined in the quarter due to the absence of year earlier Political advertising. Q4 adj. EBITDA of $16.2 million was slightly below our $19.0 million estimate.
Meta takes its business in-house. The recent financial results were overshadowed by a late announcement that Meta plans to take its advertising sales in-house, ending its relationship with Entravision and all its sales partners. Meta accounted for roughly 52% of total company revenues and 40% of adj. EBITDA in 2023.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Noblecon19. On December 4th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Chris Young, Chief Financial Officer, highlighted the company’s digital growth initiatives, its strong and improving balance sheet and favorable industry undercurrents. A replay of the presentation can be viewed here: https://www.channelchek.com/videos/entravision-communications-noblecon19-replay.
Digital growth. On a trailing twelve-month basis from Q3, digital revenue comprised 82% of total revenue, and its operations spanned 40 countries. From 2019 to 2022, total company revenue grew at a 52% CAGR, a result of its fast growing digital businesses. Notably, the company is focused on improving digital margins after Facebook reduced commissions from 10% to 7%.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced its participation in NobleCon19, Noble Capital Markets’ 19th Annual Emerging Growth Equity Conference, to be held December 3-5, 2023, in Boca Raton, FL. Chris Young, Chief Financial Officer and Treasurer, is scheduled to present on Monday, December 4th, 2023 at 11:30 a.m. ET and will participate in meetings with investors throughout the day.
A high-definition video webcast of the presentation will be available the following day on Entravision’s Investor Relations website at investor.entravision.com.
About Entravision Communications Corporation
Entravision is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.
Christopher T. Young Chief Financial Officer Entravision 310-447-3870
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced the hire of Jack Randall as Executive Vice President of Political and Strategic Sales, effective November 13, 2023. In his new role, Mr. Randall will lead the development and execution of high-impact sales strategies tailored specifically for the political and advocacy sector. Mr. Randall’s expertise and understanding of the unique needs of this segment will help propel the Company to new heights by optimizing Entravision’s potential in what will be the highest funded election cycle in U.S. history. Mr. Randall will report to Chris Munoz, Executive Vice President of National Sales.
“We eagerly welcome Jack to the Entravision team,” said Chris Munoz, Executive Vice President of National Sales, Entravision. “His remarkable expertise in media sales, coupled with a deep understanding of our audience, instills confidence in his capacity to spearhead our endeavors in this specialized field. Jack’s appointment stands as a significant milestone for our company, underscoring our dedication to innovation and strategic growth.”
Mr. Randall brings more than 40 years of experience as an accomplished executive in the media industry. He previously served as Head of Strategic Sales at T-Mobile Advertising Solutions from 2022 to 2023, where he worked directly with brands to develop custom interactive content and proprietary custom audiences for targeted media plans. Previously, he served as VP Business Development at Octopus Interactive, which was acquired by T-Mobile in 2022. Prior to that, Mr. Randall served as Chief Commercial Officer for consumer research company, CivicScience, and spent 20 years in roles of increasing seniority at Univision Communications Inc., a leading Spanish-language media company. Mr. Randall is Principal, Business Strategy at his own firm, JRR Consulting LLC and is a member of The Executive Forum and Co-Chair of the Media, Marketing, and Insights SIG. Mr. Randall graduated from Wake Forest University and holds certifications in Digital Marketing and Google Adwords.
“Entravision’s commitment to the Latino community is unwavering, and I am thrilled to join a company that recognizes the vital role of this community in shaping our future,” said Mr. Randall. “As a longtime advocate for the Hispanic community, I look forward to contributing to Entravision’s growth trajectory ahead.”
About Entravision Communications Corporation
Entravision is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and nine-month periods ended September 30, 2023.
Third Quarter 2023 Highlights
Record quarterly advertising revenue
Net revenue up 14% over the prior-year quarter
Net income attributable to common stockholders down 71% compared to the prior-year quarter
Consolidated EBITDA down 45% compared to the prior-year quarter
Operating cash flow up 45% over the prior-year quarter
Free cash flow down 74% compared to the prior-year quarter
Quarterly cash dividend of $0.05 per share
“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,” said Chris Young, Chief Financial Officer. “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.”
Quarterly Cash Dividend
The Company announced today that its Board of Directors 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 December 29, 2023 to shareholders of record as of the close of business on December 15, 2023, and the common stock will trade ex-dividend on December 14, 2023. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 10.
Unaudited Financial Highlights (In thousands, except share and per share data)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
% Change
2023
2022
% Change
Net revenue
$
274,417
$
241,014
14
%
$
786,804
$
659,881
19
%
Cost of revenue – digital (1)
199,289
157,095
27
%
562,881
431,951
30
%
Operating expenses (2)
53,809
49,294
9
%
163,069
140,527
16
%
Corporate expenses (3)
13,292
9,525
40
%
35,836
26,769
34
%
Foreign currency (gain) loss
548
1,966
(72
)%
289
2,112
(86
)%
Consolidated EBITDA (4)
14,185
25,972
(45
)%
41,420
66,566
(38
)%
Free cash flow (5)
$
4,004
$
15,443
(74
)%
$
9,470
$
44,026
(78
)%
Net income (loss)
$
2,732
$
9,090
(70
)%
$
2,430
$
19,444
(88
)%
Net (income) loss attributable to redeemable noncontrolling interest
$
(13
)
$
–
*
$
(1
)
$
–
*
Net (income) loss attributable to noncontrolling interest
$
–
$
303
(100
)%
$
342
$
303
13
%
Net income (loss) attributable to common stockholders
$
2,719
$
9,393
(71
)%
$
2,771
$
19,747
(86
)%
Net income (loss) per share attributable to common stockholders, basic and diluted
$
0.03
$
0.11
(73
)%
$
0.03
$
0.23
(87
)%
Weighted average common shares outstanding, basic
87,995,567
84,945,873
87,803,770
85,469,675
Weighted average common shares outstanding, diluted
89,888,721
87,417,501
89,835,363
87,671,726
(1)
Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)
Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $2.6 million and $1.0 million of non-cash stock-based compensation for the three-month periods ended September 30, 2023 and 2022, respectively, and $7.2 million and $2.9 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2023 and 2022, respectively.
(3)
Corporate expenses include $4.4 million and $1.8 million of non-cash stock-based compensation for the three-month periods ended September 30, 2023 and 2022, respectively, and $9.8 million and $5.1 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2023 and 2022, respectively.
(4)
Consolidated EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated EBITDA because that measure is defined in our 2017 Credit Agreement and 2023 Credit Agreement, and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)
Free cash flow is defined as consolidated EBITDA less cash paid for income taxes, net interest expense, capital expenditures (less amounts reimbursed by landlord) and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.
Unaudited Financial Results (In thousands)
Three-Month Period
Ended September 30,
2023
2022
% Change
Net revenue
$
274,417
$
241,014
14
%
Cost of revenue – digital (1)
199,289
157,095
27
%
Operating expenses (1)
53,809
49,294
9
%
Corporate expenses (1)
13,292
9,525
40
%
Depreciation and amortization
7,356
6,554
12
%
Change in fair value of contingent consideration
(5,997
)
734
*
Impairment charge
989
—
*
Foreign currency (gain) loss
548
1,966
(72
)%
Other operating (gain) loss
—
(58
)
(100
)%
Operating income (loss)
5,131
15,904
(68
)%
Interest expense, net
(2,896
)
(2,267
)
28
%
Dividend income
—
6
(100
)%
Realized gain (loss) on marketable securities
(33
)
(473
)
(93
)%
Income (loss) before income taxes
2,202
13,170
(83
)%
Income tax benefit (expense)
530
(4,080
)
*
Net income (loss)
2,732
9,090
(70
)%
Net (income) loss attributable to redeemable noncontrolling interest
(13
)
—
*
Net (income) loss attributable to noncontrolling interest
—
303
(100
)%
Net income (loss) attributable to common stockholders
$
2,719
$
9,393
(71
)%
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 2.
Net revenue in the third quarter of 2023 totaled $274.4 million, up 14% from $241.0 million in the prior-year period. Of the overall increase, $42.6 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to various acquisitions, which did not fully contribute to our financial results in our digital segment in the comparable period. The overall increase was partially offset by a decrease of $6.1 million attributable to our 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 our audio segment, primarily due to a decrease in political advertising revenue, and decreases in local and national advertising revenue.
Cost of revenue in the third quarter of 2023 totaled $199.3 million, up 27% from $157.1 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to various acquisitions, which did not fully contribute to our financial results in our digital segment in the comparable period.
Operating expenses in the third quarter of 2023 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 our digital segment and was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the timing of the 2023 annual restricted stock unit (“RSU”) grant to certain employees, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022, and due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense, and due to various acquisitions, which did not fully contribute to our financial results in our digital segment in the comparable period. In addition, of the overall increase in operating expenses, $0.5 million was attributable to our audio segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, and due to an increase in salaries. The overall increase was partially offset by a decrease of $0.1 million attributable to our television segment.
Corporate expenses in the third quarter of 2023 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, which is mainly a result of the 2023 annual RSU grant timing mentioned above and RSU grant to our new CEO, and increases in professional service fees.
Nine-Month Period
Ended September 30,
2023
2022
% Change
Net revenue
$
786,804
$
659,881
19
%
Cost of revenue – digital (1)
562,881
431,951
30
%
Operating expenses (1)
163,069
140,527
16
%
Corporate expenses (1)
35,836
26,769
34
%
Depreciation and amortization
20,336
19,212
6
%
Change in fair value of contingent consideration
(8,939
)
6,810
*
Impairment charge
989
—
*
Foreign currency (gain) loss
289
2,112
(86
)%
Other operating (gain) loss
—
(1,011
)
(100
)%
Operating income (loss)
12,343
33,511
(63
)%
Interest expense, net
(9,333
)
(5,309
)
76
%
Dividend income
32
20
60
%
Realized gain (loss) on marketable securities
(94
)
(473
)
(80
)%
Gain (loss) on debt extinguishment
(1,556
)
—
*
Income (loss) before income taxes
1,392
27,749
(95
)%
Income tax benefit (expense)
1,038
(8,305
)
*
Net income (loss)
2,430
19,444
(88
)%
Net (income) loss attributable to redeemable noncontrolling interest
(1
)
—
*
Net (income) loss attributable to noncontrolling interest
342
303
13
%
Net income (loss) attributable to common stockholders
$
2,771
$
19,747
(86
)%
Net revenue for the nine-month period of 2023 totaled $786.8 million, up 19% from $659.9 million in the prior-year period. Of the overall increase, $140.9 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to various acquisitions, which did not fully contribute to our financial results in our digital segment in the comparable period. The overall increase was partially offset by a decrease of $9.1 million attributable to our television segment, primarily due to decreases in political advertising revenue and national advertising revenue, partially offset by increases in local advertising revenue, spectrum usage rights revenue and retransmission consent revenue. In addition, the overall increase was partially offset by a decrease of $4.9 million attributable to our audio segment, primarily due to a decrease in political advertising revenue, and decreases in local and national advertising revenue.
Cost of revenue for the nine-month period of 2023 totaled $562.9 million, up 30% from $432.0 million in the prior-year period. The increase was due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to various acquisitions, which did not fully contribute to our financial results in our digital segment in the comparable period.
Operating expenses for the nine-month period of 2023 totaled $163.1 million, up 16% from $140.5 million in the prior-year period. Of the overall increase, $18.2 million was attributable to our digital segment and was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, and due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense, and due to various acquisitions, which did not fully contribute to our financial results in our digital segment in the comparable period. Additionally, of the overall increase in operating expenses, $0.9 million was attributable to our television segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, partially offset by a decrease in bad debt expense. In addition, of the overall increase in operating expenses, $3.5 million was attributable to our audio segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, and due to an increase in salaries and increased rent expense in the temporary office space until the move to our new permanent offices, which was completed in June 2023.
Corporate expenses for the nine-month period of 2023 totaled $35.8 million, up 34% from $26.8 million in the prior-year period. The increase was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above and RSU grant to our new CEO, and increases in professional service fees, audit fees and rent expense.
Balance Sheet and Related Metrics
Cash and marketable securities as of September 30, 2023 totaled $128.7 million. Total debt as defined in the Company’s credit agreement was $211.1 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 2.1 times as of September 30, 2023. Net of total cash and marketable securities, total leverage was 1.1 times.
Unaudited Segment Results (In thousands)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
% Change
2023
2022
% Change
Net Revenue
Digital
$
231,487
$
188,877
23
%
$
657,865
$
516,966
27
%
Television
29,552
35,678
(17
)%
89,807
98,918
(9
)%
Audio
13,378
16,459
(19
)%
39,132
43,997
(11
)%
Total
$
274,417
$
241,014
14
%
$
786,804
$
659,881
19
%
Cost of Revenue – digital (1)
Digital
$
199,289
$
157,095
27
%
$
562,881
$
431,951
30
%
Operating Expenses (1)
Digital
23,173
19,080
21
%
69,755
51,577
35
%
Television
19,892
20,003
(1
)%
59,859
58,969
2
%
Audio
10,744
10,211
5
%
33,455
29,981
12
%
Total
$
53,809
$
49,294
9
%
$
163,069
$
140,527
16
%
Corporate Expenses (1)
$
13,292
$
9,525
40
%
$
35,836
$
26,769
34
%
Consolidated EBITDA (1)
$
14,185
$
25,972
(45
)%
$
41,420
$
66,566
(38
)%
(1) Cost of revenue, operating expenses, corporate expenses, and consolidated EBITDA are defined on page 2.
Notice of Conference Call
Entravision Communications Corporation will hold a conference call to discuss its third quarter 2023 results on Thursday, November 2, 2023 at 5:00 p.m. Eastern Time. To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (Int’l) ten minutes prior to the start time and reference Conference ID number 10182461. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.
About Entravision Communications Corporation
Entravision is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.
Forward-Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.
(Financial Table Follows)
Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Net revenue
$
274,417
$
241,014
$
786,804
$
659,881
Expenses:
Cost of revenue – digital
199,289
157,095
562,881
431,951
Direct operating expenses
31,855
30,086
94,782
87,505
Selling, general and administrative expenses
21,954
19,208
68,287
53,022
Corporate expenses
13,292
9,525
35,836
26,769
Depreciation and amortization
7,356
6,554
20,336
19,212
Change in fair value of contingent consideration
(5,997
)
734
(8,939
)
6,810
Impairment charge
989
—
989
—
Foreign currency (gain) loss
548
1,966
289
2,112
Other operating (gain) loss
—
(58
)
—
(1,011
)
269,286
225,110
774,461
626,370
Operating income (loss)
5,131
15,904
12,343
33,511
Interest expense
(4,454
)
(3,055
)
(12,788
)
(7,225
)
Interest income
1,558
788
3,455
1,916
Dividend income
—
6
32
20
Realized gain (loss) on marketable securities
(33
)
(473
)
(94
)
(473
)
Gain (loss) on debt extinguishment
—
—
(1,556
)
—
Income (loss) before income taxes
2,202
13,170
1,392
27,749
Income tax benefit (expense)
530
(4,080
)
1,038
(8,305
)
Net income (loss)
2,732
9,090
2,430
19,444
Net (income) loss attributable to redeemable noncontrolling interest
(13
)
—
(1
)
—
Net (income) loss attributable to noncontrolling interest
—
303
342
303
Net income (loss) attributable to common stockholders
$
2,719
$
9,393
$
2,771
$
19,747
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted
$
0.03
$
0.11
$
0.03
$
0.23
Cash dividends declared per common share, basic and diluted
$
0.05
$
0.03
$
0.15
$
0.08
Weighted average common shares outstanding, basic
87,995,567
84,945,873
87,803,770
85,469,675
Weighted average common shares outstanding, diluted
89,888,721
87,417,501
89,835,363
87,671,726
Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
September 30,
December 31,
2023
2022
ASSETS
Current assets
Cash and cash equivalents
$
110,624
$
110,691
Marketable securities
18,063
44,528
Restricted cash
765
753
Trade receivables, net of allowance for doubtful accounts
211,175
224,713
Assets held for sale
1,223
—
Prepaid expenses and other current assets
43,404
27,238
Total current assets
385,254
407,923
Property and equipment, net
67,750
61,362
Intangible assets subject to amortization, net
55,706
61,811
Intangible assets not subject to amortization
207,453
207,453
Goodwill
90,672
86,991
Deferred income taxes
2,591
2,591
Operating leases right of use asset
45,159
44,413
Other assets
21,550
8,297
Total assets
$
876,135
$
880,841
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt
$
8,643
$
5,256
Accounts payable and accrued expenses
240,417
237,415
Operating lease liabilities
7,150
5,570
Total current liabilities
256,210
248,241
Long-term debt, less current maturities, net of unamortized debt issuance costs
201,301
207,292
Long-term operating lease liabilities
46,849
42,151
Other long-term liabilities
17,294
30,198
Deferred income taxes
68,464
67,590
Total liabilities
590,118
595,472
Redeemable noncontrolling interest
47,301
—
Stockholders’ equity
Class A common stock
8
8
Class U common stock
1
1
Additional paid-in capital
742,040
776,298
Accumulated deficit
(501,604
)
(504,375
)
Accumulated other comprehensive income (loss)
(1,729
)
(1,510
)
Total stockholders’ equity
238,716
270,422
Noncontrolling interest
–
14,947
Total equity
238,716
285,369
Total liabilities and equity
$
876,135
$
880,841
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Cash flows from operating activities:
Net income (loss)
$
2,732
$
9,090
$
2,430
$
19,444
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
7,356
6,554
20,336
19,212
Impairment charge
989
—
989
—
Deferred income taxes
(40
)
62
(169
)
(3,151
)
Non-cash interest
85
365
264
1,076
Amortization of syndication contracts
118
117
358
348
Payments on syndication contracts
(125
)
(70
)
(366
)
(304
)
Non-cash stock-based compensation
7,032
2,786
17,053
7,995
(Gain) loss on marketable securities
33
473
94
473
(Gain) loss on disposal of property and equipment
(29
)
39
(11
)
(599
)
(Gain) loss on debt extinguishment
—
—
1,556
—
Change in fair value of contingent consideration
(5,997
)
734
(8,939
)
6,810
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(1,219
)
4,708
16,261
22,296
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets
(3,902
)
1,069
(7,199
)
(183
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
14,993
(10,691
)
26,460
4,725
Net cash provided by operating activities
22,026
15,236
69,117
78,142
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles
33
—
83
2,671
Purchases of property and equipment
(5,023
)
(4,673
)
(19,881
)
(7,882
)
Purchase of a business, net of cash acquired
—
—
(6,930
)
—
Investment in variable interest entities, net of cash consolidated
—
(5,164
)
—
(5,164
)
Purchases of marketable securities
(1,183
)
(5,241
)
(11,355
)
(92,480
)
Proceeds from sale of marketable securities
10,000
36,369
38,093
46,868
Purchases of investments
(100
)
—
(300
)
—
Issuance of loan receivable
(5,550
)
—
(13,636
)
—
Net cash provided by (used in) investing activities
(1,823
)
21,291
(13,926
)
(55,987
)
Cash flows from financing activities:
Proceeds from stock option exercises
—
—
554
218
Tax payments related to shares withheld for share-based compensation plans
(63
)
—
(158
)
(267
)
Payments on debt
(1,250
)
(1,001
)
(214,495
)
(2,501
)
Dividends paid
(4,400
)
(2,124
)
(13,182
)
(6,415
)
Distributions to noncontrolling interest
—
—
(3,380
)
—
Repurchase of Class A common stock
—
—
—
(11,280
)
Payment of contingent consideration
(3,403
)
(21,734
)
(35,113
)
(65,340
)
Principal payments under finance lease obligation
(37
)
(33
)
(113
)
(72
)
Proceeds from borrowings on debt
1
—
212,420
—
Payments for debt issuance costs
—
—
(1,777
)
—
Net cash used in financing activities
(9,152
)
(24,892
)
(55,244
)
(85,657
)
Effect of exchange rates on cash, cash equivalents and restricted cash
(3
)
5
(2
)
(1
)
Net increase (decrease) in cash, cash equivalents and restricted cash
11,048
11,640
(55
)
(63,503
)
Cash, cash equivalents and restricted cash:
Beginning
100,341
110,700
111,444
185,843
Ending
$
111,389
$
122,340
$
111,389
$
122,340
Entravision Communications Corporation
Reconciliation of Consolidated EBITDA to Cash Flows From Operating Activities
(In thousands; unaudited)
The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Consolidated EBITDA (1)
$
14,185
$
25,972
$
41,420
$
66,566
EBITDA attributable to redeemable noncontrolling interest
319
—
736
—
EBITDA attributable to noncontrolling interest
—
(5
)
230
(5
)
Interest expense
(4,454
)
(3,055
)
(12,788
)
(7,225
)
Interest income
1,558
788
3,455
1,916
Dividend income
–
6
32
20
Realized gain (loss) on marketable securities
(33
)
(473
)
(94
)
(473
)
Income tax expense
530
(4,080
)
1,038
(8,305
)
Amortization of syndication contracts
(118
)
(117
)
(358
)
(348
)
Payments on syndication contracts
125
70
366
304
Non-cash stock-based compensation included in direct operating expenses
(2,637
)
(981
)
(7,218
)
(2,878
)
Non-cash stock-based compensation included in corporate expenses
(4,395
)
(1,805
)
(9,835
)
(5,117
)
Depreciation and amortization
(7,356
)
(6,554
)
(20,336
)
(19,212
)
Change in fair value of contingent consideration
5,997
(734
)
8,939
(6,810
)
Impairment charge
(989
)
—
(989
)
—
Non-recurring cash severance charge
—
—
(612
)
—
Other operating gain (loss)
—
58
—
1,011
Gain (loss) on debt extinguishment
—
—
(1,556
)
—
Net (income) loss attributable to redeemable noncontrolling interest
(13
)
—
(1
)
—
Net (income) loss attributable to noncontrolling interest
—
303
342
303
Net income (loss) attributable to common stockholders
2,719
9,393
2,771
19,747
Depreciation and amortization
7,356
6,554
20,336
19,212
Impairment charge
989
—
989
—
Deferred income taxes
(40
)
62
(169
)
(3,151
)
Non-cash interest
85
365
264
1,076
Amortization of syndication contracts
118
117
358
348
Payments on syndication contracts
(125
)
(70
)
(366
)
(304
)
Non-cash stock-based compensation
7,032
2,786
17,053
7,995
Realized (gain) loss on marketable securities
33
473
94
473
(Gain) loss on debt extinguishment
—
—
1,556
—
(Gain) loss on disposal of property and equipment
(29
)
39
(11
)
(599
)
Change in fair value of contingent consideration
(5,997
)
734
(8,939
)
6,810
Net income (loss) attributable to redeemable noncontrolling interest
13
—
1
—
Net income (loss) attributable to noncontrolling interest
—
(303
)
(342
)
(303
)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(1,219
)
4,708
16,261
22,296
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets
(3,902
)
1,069
(7,199
)
(183
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
14,993
(10,691
)
26,460
4,725
Cash flows from operating activities
22,026
15,236
69,117
78,142
(1)
Consolidated EBITDA is defined on page 2.
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Cash Flows From Operating Activities
(In thousands; unaudited)
The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Consolidated EBITDA (1)
$
14,185
$
25,972
$
41,420
$
66,566
Net interest expense (1)
(2,811
)
(1,902
)
(9,069
)
(4,233
)
Dividend income
—
6
32
20
Cash paid for income taxes
(2,347
)
(4,018
)
(5,929
)
(11,456
)
Capital expenditures (2)
(5,023
)
(4,673
)
(19,881
)
(7,882
)
Landlord incentive reimbursement
—
—
3,509
—
Non-recurring cash severance charge
—
—
(612
)
—
Other operating gain (loss)
—
58
—
1,011
Free cash flow (1)
4,004
15,443
9,470
44,026
Capital expenditures (2)
5,023
4,673
19,881
7,882
Landlord incentive reimbursement
—
—
(3,509
)
—
EBITDA attributable to redeemable noncontrolling interest
319
—
736
—
EBITDA attributable to noncontrolling interest
—
(5
)
230
(5
)
(Gain) loss on disposal of property and equipment
(29
)
39
(11
)
(599
)
Cash paid for income taxes
2,347
4,018
5,929
11,456
Deferred income taxes
(40
)
62
(169
)
(3,151
)
Income tax (expense) benefit
530
(4,080
)
1,038
(8,305
)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(1,219
)
4,708
16,261
22,296
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets
(3,902
)
1,069
(7,199
)
(183
)
Increase (decrease) in accounts payable, accrued expenses and other liabilities
14,993
(10,691
)
26,460
4,725
Cash Flows From Operating Activities
$
22,026
$
15,236
$
69,117
$
78,142
(1)
Consolidated EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)
Capital expenditures are not part of the consolidated statement of operations.
Christopher T. Young Chief Financial Officer and Treasurer Entravision Communications Corporation 310-447-3870
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A mixed quarter. Q3 revenues of $274.4 million, a record revenue quarter for the company, was largely in line with our $277.0 million estimate. But, the absence of high margin Political advertising and lower margin revenue mix caused an adj. EBITDA shortfall, $14.2 million versus our $17.0 million estimate. Lower Digital adj. EBITDA accounted for the largest portion of the EBITDA variance.
Lower Q4 outlook. We are lowering our Q4 total company revenue from $318.0 million to $309.7 million to reflect the company’s current pacings. Based on lower margin assumptions, we are lowering our adj. EBITDA from $25.0 million to $19.0 million. For the year, we are lowering our adj. EBITDA estimate from $69.2 million to $60.4 million.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced the following updates to its Board of Directors (“the Board”), effective immediately, as part of the Company’s ongoing commitment to corporate governance practices and enhancing stockholder value:
Michael Christenson, Entravision’s Chief Executive Officer, was appointed as a director of the Company.
Lara Sweet, currently a director of MediaAlpha, Inc. and previously the Chief People Officer, Interim Chief Financial Officer, and Chief Accounting Officer and Controller of Snap Inc., was appointed as an independent director of the Company. Ms. Sweet will serve on the Audit Committee as a financial expert and on the Compensation Committee.
Juan Saldivar von Wuthenau, Entravision’s Chief Digital, Strategy and Accountability Officer, has resigned as a director of the Company. Mr. Saldivar will remain in his current executive role at Entravision which he has held since November 2020.
“We are pleased to welcome both Mr. Christenson and Ms. Sweet as directors, consistent with our commitment to corporate governance and periodically refreshing the Board with new perspectives, skill sets and experiences,” commented Paul Zevnik, Chair of Entravision’s Board of Directors. “We look forward to benefiting from Mr. Christenson’s extensive experience with high-growth public and private technology companies and, in conjunction with his role as CEO of the Company, building on our strategy to drive growth and stockholder value. In addition, Ms. Sweet has valuable leadership experience in finance and human resources at major technology companies. These updates align with our ongoing Board refreshment and succession planning, which includes the appointment earlier this year of Brad Bender, who brings significant digital advertising industry experience, and Tom Strickler, who added deep knowledge of the media and entertainment industry as well as significant business leadership expertise. I’d also like to thank Mr. Saldivar for his contributions to the Board over the past nine years and for remaining in his executive role as the Company continues to build value with our digital media, advertising and technology platforms.”
Mr. Saldivar added, “It has been an honor to serve as a director since 2014, while helping develop and implement the Company’s digital strategy as an external consultant since 2011 and a member of the executive team for the past three years. I believe Entravision’s future is bright and I look forward to continuing to collaborate with the Board and executive team as we advance our strategy of being a premiere global media, advertising solutions and technology company.”
Ms. Sweet has been a director of MediaAlpha, Inc., a marketing technology company that uses technology and data science to help businesses optimize their customer acquisition efforts, since the completion of its initial public offering in October 2020 and serves as the chair of its Audit Committee. In addition, Ms. Sweet serves as an advisor to private technology companies. From May 2019 to June 2021, Ms. Sweet served as the Chief People Officer at Snap Inc., a social media company and owner of the Snapchat application. Prior to that, Ms. Sweet served as Snap’s Interim Chief Financial Officer from January 2019 to May 2019, and as Chief Accounting Officer and Controller from June 2016 to September 2019. During her tenure in these roles, Ms. Sweet was integrally involved in developing and implementing best practices across Snap’s accounting and financial reporting functions, among other key initiatives. Prior to Snap, Ms. Sweet served as Controller and Chief Accounting Officer at AOL. She has also held the positions of Senior Director, External Reporting at Freddie Mac and Senior Manager, Internal Audit at Marriott International. Ms. Sweet received a B.S. in Accounting from George Mason University.
About Entravision Communications Corporation
Entravision is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.
Christopher Young Chief Financial Officer Entravision 310-447-3870
Entravision will empower advertisers to capture audiences in Europe and the U.S.
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision, a global advertising solutions, media and technology company serving clients across more than 40 countries, has entered into an international sales partnership with Pinterest, the visual inspiration platform.
Through this partnership, Entravision will offer advertisers outreach and campaign management in various countries across Southeast Asia, Latin America, Africa, Europe, and the Middle East, where Pinterest is not currently serving ads, and will enable these advertisers to reach audiences where ads are served in Europe and the U.S.
Each month, hundreds of millions of people use Pinterest to discover products and services for their wardrobe, for their new home, for a fresh beauty look and much more. Advertisers want to be discovered during these planning moments, and there is a natural alignment with users who seek brands to inspire their next purchase. On Pinterest, advertisers can reach the consumers they care about and drive them from discovery to decision to do – all in a more positive place online.
“From awareness to consideration to conversion, we have the ideal ad solutions for our advertisers, up and down the funnel. We are driving more clicks, conversions, and better performance for our advertisers than ever and are thrilled to partner with Entravision to extend our ads offering to more brands around the world,” said Bill Watkins, Chief Revenue Officer at Pinterest.
“We are excited and look forward to Entravision and Pinterest uniting to deliver more value, engagement, and growth to Pinterest’s advertisers. Our solutions serve more than 8,000 brands every month and will enable advertisers to fully access Pinterest’s global audience,” said Michael Christenson, CEO of Entravision.
About Entravision
Entravision (NYSE: EVC) is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.
About Pinterest
Pinterest is the visual inspiration platform where people come to search, save, and shop the best ideas in the world for all of life’s moments. Whether it’s planning an outfit, trying a new beauty ritual, renovating a home, or discovering a new recipe, Pinterest is the best place to confidently go from inspiration to action. Headquartered in San Francisco, Pinterest launched in 2010 and has 465 million monthly active users worldwide. Available on iOS and Android, and at pinterest.com.
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, announced today that its African based digital business unit has become the exclusive sales partner in Africa of Match Media Group, the group that powers advertising for brands including Tinder, OkCupid and Match.
(Graphic: Business Wire)
Match Group is on a mission to spark meaningful connections for every single person in the world. Founded 25 years ago, Match pioneered the concept of online dating and continues to foster innovation in the online dating industry. With more than 20 offices around the world, the company operates several iconic brands under its portfolio including Match, OkCupid, Tinder, and The League. Today, hundreds of millions of singles have found a meaningful connection using Match Group services.
“This partnership with Match Media Group reinforces our commitment to advertisers to connect brands to consumers through local strategic support, creative expertise and a suite of innovative advertising opportunities on the platform,” said Julian Jordaan, President of Entravision Africa. “Globally, we’re seeing a dating renaissance, with online dating now being the most common way that singles are making new connections. We’re thrilled to be partnered with Match Media Group in Africa to connect consumers to brands in an authentic and relevant way.”
As the exclusive sales partner to Match Media Group across the African continent, Entravision has created a dedicated local team of experts based in South Africa to provide businesses with the tools crucial to sales growth, while also assisting customers in deploying their advertising investments more efficiently across their digital technologies.
About Entravision
Entravision (NYSE: EVC) is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.
About Match Group
Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Our global portfolio of brands includes Tinder®, Hinge®, Match®, Meetic®, OkCupid®, Pairs™, PlentyOfFish®, Azar®, Hakuna™, and more, each built to increase our users’ likelihood of connecting with others. Through our trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world.
Forward-Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Non Deal Road Show highlights. This report highlights a recent NDR with Christopher Young, the Chief Financial Officer of Entravision. We believe that the investor meetings reinforced our favorable investment thesis for the company; its above average revenue and cash flow prospects, the looming influx of high margin Political advertising, its attractive outlook for its Digital businesses, large cash position, free cash flow generation, and compelling stock valuation, which offers an impressive current 5.5% annualized dividend yield.
Focus on margins. The company plans to focus on improving margins in its Digital business and is in the process of right sizing its Digital business by reducing staffing levels and reorganizing commissions. Its plan is to return Digital margins from the current 5% to the upper single digits to 10%.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision Communications Corporation (NYSE: EVC), a leading global media and marketing technology company, today announced that the Company will bring listeners the most extensive Spanish language radio broadcast coverage of the NFL for the 2023-24 season. For the 9th consecutive season, Entravision will broadcast 51 prime NFL games in Spanish across its US owned-and-operated radio stations and in key markets through affiliate partnerships that include Latino Media Network.
Entravision will begin with the NFL Kickoff game on Thursday, September 7th, featuring a match-up between the Detroit Lions and the defending Super Bowl champions, the Kansas City Chiefs. Radio coverage continues across the expanded 18-week NFL season, including all Sunday Night Football and Monday Night Football games, and will continue through the postseason, including the AFC Championship, NFC Championship, and, for the very first time, culminating with Super Bowl LVIII in Las Vegas on February 11, 2024. Super Bowl LVIII will be played at Allegiant Stadium, home of the NFL’s Las Vegas Raiders.
Entravision’s game day broadcasts include a pre-game show, followed by the live game broadcast and post-game analysis. In addition, Sunday broadcasts start with a 30-minute signature analysis show, Pase Completo, prior to the pre-game show, featuring veteran multi-sport announcer Ricardo Celis and game analyst Tony Nuñez. The Pase Completo program will also be streamed live on Facebook Live.
“We are thrilled to extend our long-term partnership with the NFL and bring our listeners the most extensive Spanish language radio broadcast of the National Football League,” said Jeffery Liberman, President and Chief Operating Officer of Entravision Communications Corporation. “The fastest-growing fan base for the NFL is the Latino consumer which is passionately awaiting the start of the season. We have had a great partnership with the NFL, and we will continue to build upon this momentum to provide best-in-class coverage and unique cross-promotions that amplify key NFL initiatives.”
“Our partnership with Entravision is vital, as it helps bring the NFL to Spanish-speaking fans across the country, one of the fastest growing segments of our football fan base,” said Marissa Solis, NFL SVP Global Brand and Consumer Marketing. “Providing Spanish language calls of a large slate of NFL games, including Sunday Night and Monday Night Football, as well as the postseason and the Super Bowl, Entravision will ensure that our Latino fans have the access to the NFL that they deserve.”
Entravision O&O Station List
Market
Station
Call Letters
Los Angeles, CA
Viva 103.1 FM
KDLD-FM/KDLE-FM
Phoenix, AZ
La Suavecita 106.9 y 107.1 FM
KVVA-FM and KDVA-FM
Denver, CO
La Suavecita 92.1 FM
KJMN-FM
Sacramento, CA
La Suavecita 104.3 FM
KXSE-FM
Las Vegas, NV
Fuego 92.7 FM
KRRN-FM
El Paso, TX
La Suavecita 93.9 FM
KINT-FM
Monterey/Salinas, CA
La Suavecita 107.1 FM
KSES-FM
Albuquerque, NM
TUDN 1450 AM
KRZY-AM
McAllen, TX
La Suavecita 101.9 FM
KNVO-FM
Palm Springs, CA
Fuego 103.5 FM
KPST-FM
Stockton/Modesto
La Suavecita 97.1 FM
KTSE-FM
Reno, NV
La Tricolor 102.1 FM
KRNV-FM
El Centro, CA
La Suavecita 94.5 FM
KSEH-FM
Lubbock, TX
TUDN 1460 AM
KBZO-AM
Aspen, CO
La Tricolor 104.3 y 107.1 FM
KPVW-FM
Latino Media Network Affiliate Station List
Market
Station
Call Letters
New York, NY
1280 AM
WADO-AM*
Miami, FL
1140 AM
WQBA-AM
Chicago, IL
1200 AM
WRTO-AM
Dallas, TX
1270 AM
KFLC-AM
*WADO-AM is under contract to be acquired by Latino Media Network from TelevisaUnivision.
About Entravision Communications Corporation
Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.
About Latino Media Network
Latino Media Network is a media company serving the Latino community by helping us make sense of the world and their place in it. We will inspire, inform and celebrate Latinos through an audio focused multimedia network, owned and operated by members of our community. We will focus on content creation across a variety of culturally relevant subjects and help our community navigate the ocean of information that exists in our society. The network will create cultural pride by telling our stories, addressing our concerns and talking about opportunities for a better future.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Mixed Q2 results. While revenues beat expectations ($273.4 million versus our $262.9 million estimate), adj. EBITDA was 13% lower than expected ($14.2 million versus our $16.4 million estimate). The revenue variance was due to its Digital revenue, $10 million above our expectations. Notably, the biggest adj. EBITDA variance was due to lower margins in its Digital Media segment.
A Facebook faceplant. The company’s Digital Media margins going forward will be adversely affected by Meta (Facebook) is reducing Entravision’s commission revenue, from 10% to 7%. We estimate that this will adversely affect the company by over $8 million in adj. EBITDA in the second half 2023. While margins will take a hit, the company’s Digital Media revenue growth appears favorable and adj. EBITDA is expected to grow strong double digits in 2024.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Shuns Inside Favorite. Entravision’s board appointed Michael Christenson as its Chief Executive Officer, effective July 1, 2023, denying Chris Young, the interim CEO and CFO, the position. Mr. Christenson has a decades long career as an investment banker and held leadership roles at software companies New Relic and CA Technologies.
What does the move tell us? We believe that the appointment signals that the company will become more aggressive in seeking acquisitions. As of March 31, the company had a pristine balance sheet with roughly $180 million in cash and marketable securities and $207 million in debt, or a modest 0.3 times net debt to estimated cash flow. Given Mr. Christenson’s investment banking background, we believe that M&A likely will be his mandate.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
