Entravision(EVC) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q3 2024, consolidated revenue was $97.2 million, a 25% increase compared to Q3 2023, driven by political advertising revenue and growth in Smadex [19] - Net loss attributable to common stockholders was$ 12 million, compared to net income of $2.7 million in the prior year, primarily due to an income tax loss [20] - Corporate expenses decreased by 48% to$ 6.9 million compared to Q3 2023, attributed to a reduction in personnel and related compensation [25][26] Business Line Data and Key Metrics Changes - Media segment revenue was $59.8 million, up 23% year-over-year, driven by political advertising revenue [21] - Operating profit for the Media segment was$ 11.7 million, a 19% increase, with an operating margin of 20% [21] - Advertising Technology and Services segment revenue was $37.4 million, a 30% increase, with operating margins improving to 5% from 3% year-over-year [23][24] Market Data and Key Metrics Changes - Political revenue for 2024 is expected to exceed the previous high in 2022, although it will not meet the most ambitious expectations due to lower spending in key races [11] - The allocation to Spanish language media in critical races was higher than the percentage of registered Latino voters, indicating a positive trend for future political advertising [12] Company Strategy and Development Direction - The company is focused on serving the Latino audience and enhancing its media business through significant investments in news production and political sales [7][8] - The reorganization of business units into two segments aims to drive revenue and reduce expenses, aligning with operational structures [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outcomes and the effectiveness of their audience engagement strategies during the election cycle [13] - Looking ahead, revenue from the Media segment is currently pacing at a 28% increase for Q4 2024, while the Advertising Technology and Services segment is pacing at a 30% increase [22][24] Other Important Information - Cash capital expenditures for Q3 were$ 1.6 million, representing 14% of net cash provided by operating activities, lower than the previous year [28] - Free cash flow for Q3 2024 was $9.3 million, down from$ 17 million in Q3 2023, primarily due to the sale of the EGP business [29] - The company paid $4.5 million in dividends during Q3, representing 41% of net cash provided by operating activities [30] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the end of the conference call [32]