Entravision Sells Dallas Cluster, Q3 Revenues Up
August 4, 2006 at 5:56 AM (PT)
ENTRAVISION is selling its five-station DALLAS cluster to LIBERMAN BROADCASTING for $95 million. The stations include Spanish Top 40 KTCY (SUPER ESTRELLA 101.7), Hurban KZZA (CASA 106.7), Brokered Indian KZMP-A (RADIO SALAAM NAMASTE), Regional Mexican KZMP-F (RADIO TRICOLOR), and recently-acquired Spanish Adult Hits KBOC (JOSE FM). LIBERMAN also owns Regional Mexican move-in KNOR (LA RAZA 93.7) and Spanish-language independent KMPX-TV-DT in the market.
ENTRAVISION's sale comes as its second quarter financial results were announced, with the company showing a 6% increase in net revenue to $79.289 million, free cash flow up 9% to $15.010, and net income down from $4.231 million to a loss of $167.998 million (loss of $1.60/share), the loss including a one-time impairment charge of $189.7 million after an appraisal of the radio division. Radio net revenue fell 4% to $26.211 million (but rose 4% on a pro-forma basis, excluding stations sold by the company in the SAN FRANCISCO-SAN JOSE market).
Third quarter net revenues and operating expenses are both expected to increase by mid single digit percentages.