Entravision Communications Corporation (EVC) Bundle
A Brief History of Entravision Communications Corporation
Company Overview
Entravision Communications Corporation, founded in 1996, is a leading global media and marketing services company that connects brands with the Hispanic consumer. As of 2024, the company operates in two primary segments: Media and Advertising Technology & Services.
Financial Performance
For the nine-month period ending September 30, 2024, Entravision reported net revenue of $258.0 million, an increase of 18% from $218.8 million in the same period of 2023. This growth was primarily driven by an increase of $10.2 million in advertising revenue from the Media segment and $29.0 million from the Advertising Technology & Services segment .
Cost of Revenue
Cost of revenue for the nine-month period ended September 30, 2024, rose to $73.9 million, compared to $57.9 million in 2023. The increase was attributed to a $4.2 million rise in the Media segment and an $11.8 million rise in the Advertising Technology & Services segment .
Direct Operating Expenses
Direct operating expenses increased to $99.2 million for the nine-month period ended September 30, 2024, up from $84.2 million in 2023. This included a $10.4 million increase in the Media segment and a $4.6 million increase in the Advertising Technology & Services segment .
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the nine-month period ended September 30, 2024, were $45.8 million, compared to $37.4 million in 2023, reflecting increases of $3.6 million and $4.9 million in the respective segments .
Net Income (Loss)
Entravision reported a net loss attributable to common stockholders of $92.6 million for the nine-month period ended September 30, 2024, compared to a net income of $2.8 million for the same period in 2023. This significant loss was influenced by various factors, including impairment charges and losses from discontinued operations .
Cash Flow Analysis
Net cash flow provided by operating activities was $61.9 million for the nine-month period ended September 30, 2024, down from $69.1 million in 2023. The decrease in cash flow was primarily due to a decline in net income after adjusting for non-cash items .
Debt and Financing
As of September 30, 2024, Entravision had $187.8 million of variable-rate bank debt outstanding under its 2023 Credit Facility. The interest rates on this debt are tied to the Term SOFR plus a margin of 2.50% to 3.00% .
Recent Developments
In March 2024, Entravision announced the wind-down of its relationship with Meta regarding its Authorized Sales Partner program, which represented approximately 53% of the company's consolidated revenue for the fiscal year ended December 31, 2023. This decision prompted a strategic review and subsequent restructuring of the company's operations .
Table of Financial Results
| Period | Net Revenue ($ millions) | Cost of Revenue ($ millions) | Direct Operating Expenses ($ millions) | Selling, General and Administrative Expenses ($ millions) | Net Income (Loss) ($ millions) |
|---|---|---|---|---|---|
| Q3 2024 | 97.2 | 26.8 | 35.6 | 17.1 | (11.98) |
| Q3 2023 | 77.4 | 21.4 | 28.7 | 11.9 | 2.72 |
| 9M 2024 | 258.0 | 73.9 | 99.2 | 45.8 | (92.55) |
| 9M 2023 | 218.8 | 57.9 | 84.2 | 37.4 | 2.77 |
Market Position
Entravision remains a key player in the Hispanic media market, leveraging its extensive network of television and radio stations. The company's strategic partnerships and advertising solutions continue to position it favorably within the competitive landscape .
Future Outlook
Looking ahead, Entravision aims to adapt its business model in response to the changing media landscape, focusing on enhancing its advertising technology capabilities while navigating the challenges posed by the recent loss of major revenue streams .
A Who Owns Entravision Communications Corporation (EVC)
Major Shareholders
As of 2024, the ownership structure of Entravision Communications Corporation (EVC) includes various institutional and individual shareholders. The major shareholders are as follows:
| Shareholder | Ownership Percentage | Type of Shares |
|---|---|---|
| TelevisaUnivision | 10% | Class U Common Stock |
| Institutional Investors | Approximately 45% | Class A Common Stock |
| Individual Investors | Approximately 45% | Class A Common Stock |
Class Structure and Voting Rights
Entravision has two classes of common stock: Class A and Class U. Class A common stock is primarily held by individual and institutional investors, while Class U common stock is exclusively held by TelevisaUnivision. The Class U shares have limited voting rights compared to Class A shares, which carry greater voting power.
Recent Changes in Ownership
In 2024, Entravision sold its EGP business, which had been a significant contributor to its revenue. This strategic decision has led to a shift in focus towards its media and advertising technology segments. Following this transaction, the company's revenue composition has changed, affecting the distribution of shareholdings among major stakeholders.
Stock Performance and Financial Data
As of September 30, 2024, Entravision's financial performance has been reflected in its stock price movements and market capitalization:
| Metric | Value |
|---|---|
| Market Capitalization | $250 million |
| Class A Common Stock Price | $3.10 |
| Shares Outstanding (Class A) | 80,634,381 |
| Shares Outstanding (Class U) | 9,352,729 |
| Additional Paid-in Capital | $820,491,000 |
| Accumulated Deficit | $(612,362,000) |
Investor Relations and Communication
Entravision maintains an active investor relations program to communicate with its shareholders. The company regularly updates its investors on financial performance, strategic initiatives, and market conditions affecting its operations.
Future Outlook
With the realignment of its business segments and the focus on media and advertising technology, Entravision aims to enhance shareholder value through growth in advertising revenues and technological advancements in its operations. The company's strategic direction is expected to attract further investment and shareholder interest as it adapts to changing market dynamics.
Entravision Communications Corporation (EVC) Mission Statement
Overview of Mission Statement
The mission of Entravision Communications Corporation (EVC) is centered around connecting and engaging U.S. Latinos through diverse media platforms. The company aims to deliver high-quality content and advertising solutions that resonate with its audience, emphasizing the importance of cultural relevance and community engagement.
Key Components of the Mission Statement
- Audience Engagement: Focus on reaching and engaging the Latino community across various platforms.
- Diversity of Media: Utilize television, radio, and digital media to provide content that reflects cultural values.
- Advertising Solutions: Offer innovative advertising technology and services to enhance advertiser reach and effectiveness.
Financial Performance Indicators
As of the third quarter of 2024, Entravision reported a net revenue of $97.2 million, with a year-over-year increase attributed to advertising growth within both their media and advertising technology segments. The breakdown of revenue sources indicates a strategic alignment with their mission to serve the Latino community effectively.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $97.2 million | $77.4 million | 25% |
| Media Segment Revenue | $59.8 million | $48.7 million | 23% |
| Advertising Technology Segment Revenue | $37.4 million | $28.7 million | 30% |
| Net Income (Loss) Attributable to Common Stockholders | $(11.98 million) | $2.7 million | N/A |
Strategic Initiatives
Entravision has undertaken several strategic initiatives to align with its mission statement:
- Realignment of Operations: As of July 1, 2024, EVC reorganized its operations into two segments: media and advertising technology & services, enhancing its focus on delivering tailored content and innovative advertising solutions.
- Partnerships: Collaboration with TelevisaUnivision has strengthened their content offerings and advertising capabilities, ensuring they remain a leading voice for the Latino community.
- Technological Advancements: Investment in programmatic advertising platforms such as Smadex enhances their ability to serve advertisers effectively while meeting audience preferences.
Market Position and Audience Reach
Entravision operates 49 primary television stations and 44 radio stations (37 FM and 7 AM), significantly extending its outreach to the U.S. Latino population. This extensive network supports its mission to engage and inform its audience through culturally relevant programming.
| Operational Metrics | As of Q3 2024 |
|---|---|
| Television Stations | 49 |
| Radio Stations | 44 |
| Broadcast Audience (U.S. Latinos) | Significant reach across major U.S. markets |
Challenges and Future Outlook
Despite achieving revenue growth, Entravision faces challenges such as shifting audience preferences towards digital media and competition in the advertising space. The company anticipates that maintaining relevance and adapting to these trends will be critical for future success.
As of September 30, 2024, the company reported a net cash flow provided by operating activities of $61.9 million, reflecting its ongoing operational viability despite recent financial challenges.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Net Cash Flow from Operating Activities | $61.9 million | $69.1 million |
| Net Cash Flow Used in Investing Activities | $(28.1 million) | $(13.9 million) |
How Entravision Communications Corporation (EVC) Works
Company Overview
Entravision Communications Corporation operates primarily as a media and advertising technology company. As of 2024, the company has realigned its operations into two main segments: media and advertising technology & services. This shift follows the sale of its EGP business in the second quarter of 2024, which previously constituted a significant portion of its revenue.
Financial Performance
For the nine-month period ended September 30, 2024, Entravision reported a net revenue of $258.0 million, an increase from $218.8 million in the same period of 2023. This growth was attributed to increases in advertising revenue across both segments.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Revenue | $97.2 million | $77.4 million | 25% | $258.0 million | $218.8 million | 18% |
| Cost of Revenue | $26.8 million | $21.4 million | 25.3% | $73.9 million | $57.9 million | 27.6% |
| Net Income (Loss) Attributable to Common Stockholders | ($11.98 million) | $2.72 million | ($92.55 million) | $2.77 million | ||
| Cash Flow from Operating Activities | $61.9 million | $69.1 million | (17.4%) | $61.9 million | $69.1 million | (17.4%) |
Segment Performance
The media segment generated 62% of total revenue, while the advertising technology & services segment contributed 38%. The media segment's net revenue for Q3 2024 was $59.8 million, up from $48.7 million in Q3 2023.
| Media Segment Revenue Breakdown | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Broadcast Advertising Revenue | $39.99 million | $30.79 million | 29.5% | $97.69 million | $91.40 million | 6.3% |
| Digital Advertising Revenue | $15.0 million | $12.3 million | 22.0% | $36.3 million | $30.0 million | 21.0% |
Operational Changes
Effective July 1, 2024, Entravision has reorganized its operations to better align with its current strategy, focusing on the media and advertising technology sectors. The realignment has led to increased direct operating expenses, amounting to $35.6 million for Q3 2024, compared to $28.7 million for Q3 2023.
Cost Structure
The cost of revenue in the media segment rose to $4.9 million for Q3 2024 from $2.8 million in Q3 2023. Similarly, costs in the advertising technology & services segment increased to $21.9 million from $18.6 million year-over-year.
| Cost Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenue (Media) | $4.9 million | $2.8 million | $11.9 million | $7.7 million |
| Cost of Revenue (Advertising Technology) | $21.9 million | $18.6 million | $62.0 million | $50.2 million |
Debt and Financing
As of September 30, 2024, Entravision's total debt outstanding under the 2023 Credit Facility was approximately $176.7 million, net of unamortized debt issuance costs. The company made significant prepayments of $20 million in 2024 to reduce its principal balance.
Cash on hand was reported at $90.3 million as of September 30, 2024, with additional marketable securities totaling $2.8 million.
Market Position
Entravision operates 49 television stations and 44 radio stations, primarily targeting U.S. Latino audiences. The company has a strategic partnership with TelevisaUnivision, which enhances its market presence and revenue generation capabilities through exclusive broadcasting rights and marketing agreements.
How Entravision Communications Corporation (EVC) Makes Money
Revenue Segments
Entravision Communications operates primarily through two segments: Media and Advertising Technology & Services. For the nine-month period ending September 30, 2024, net revenue reached $258.0 million, an increase from $218.8 million in the same period of 2023. This growth was driven by contributions from both segments:
| Segment | Net Revenue (2024) | Net Revenue (2023) | Change (%) |
|---|---|---|---|
| Media | $154.8 million | $144.6 million | 7% |
| Advertising Technology & Services | $103.2 million | $74.2 million | 39% |
Media Segment Revenue
In the media segment, revenue primarily comes from advertising through television and radio. For the three-month period ended September 30, 2024, media revenue was $59.8 million, up from $48.7 million in 2023, reflecting a 23% increase. Key contributors included:
- Broadcast advertising revenue increased by $9.2 million.
- Digital advertising revenue grew by $2.7 million.
- Other revenue streams contributed an additional $0.4 million.
Advertising Technology & Services Segment Revenue
The advertising technology and services segment has seen significant growth, with net revenue for the three-month period ending September 30, 2024, reported at $37.4 million, compared to $28.7 million in 2023, marking a 30% increase. This growth is attributed to:
- Increased advertising revenue from Smadex and Adwake, including BCNMonetize.
- Net revenue for the nine-month period was $103.2 million, up from $74.2 million.
Cost Structure
Entravision's cost of revenue also grew alongside revenue. For the nine-month period ended September 30, 2024, total costs increased to $73.9 million from $57.9 million in the previous year. The cost structure for each segment is detailed below:
| Segment | Cost of Revenue (2024) | Cost of Revenue (2023) | Change (%) |
|---|---|---|---|
| Media | $11.9 million | $7.7 million | 55% |
| Advertising Technology & Services | $62.0 million | $50.2 million | 23% |
Operating Expenses
Direct operating expenses for Entravision also saw an increase, totaling $99.2 million for the nine-month period ended September 30, 2024, up from $84.2 million in 2023. This includes:
- Media segment direct operating expenses: $82.4 million
- Advertising technology & services segment direct operating expenses: $16.8 million
Cash Flow and Income Statement Highlights
For the nine-month period ending September 30, 2024, net cash flow from operating activities was $61.9 million, down from $69.1 million in the previous year. The net income attributable to common stockholders for the same period was a loss of $92.6 million, contrasting with a gain of $2.8 million in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Flow from Operating Activities | $61.9 million | $69.1 million |
| Net Income (Loss) Attributable to Common Stockholders | ($92.6 million) | $2.8 million |
Future Outlook
With the sale of its EGP business in 2024, Entravision anticipates changes in revenue dynamics, particularly in its advertising technology & services operations, where future revenue is expected to be lower than previous periods. The company plans to focus on its core media and advertising technology services moving forward.
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Resources:
- Entravision Communications Corporation (EVC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Entravision Communications Corporation (EVC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Entravision Communications Corporation (EVC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.