Entravision Third Quarter Boosted By Spectrum Auction Money, But Radio Revenues Slip

Reporting Q3

ENTRAVISION third quarter net revenue increased 412% to $334,555,000, but that was the result of money gained in the spectrum incentive auction by relinquishing TV channel spectrum and entering into channel-sharing arrangements. 

Revenue from advertising and TV retransmission consent was up at a strong but more modest clip of 8% to $70,612,000, but radio fell 12% to $16.9 million, blamed on loss of political revenue and decreases in local and national ad revenue.  Television also dropped 9% to $36.5 million for the same reasons, offset slightly by an increase in retransmission consent revenue; digital's 198% increase to $17.1 million was primarily due to the acquisition of HEADWAY during second quarter 2017.  The spectrum deal also boosted net income by 2,803% to $157,208,000 (6 cents to $1.71 per diluted share).

Chairman/CEO WALTER F. ULLOA 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."

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