Entravision Communications Corporation Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Entravision Communications (NYSE: EVC) reported strong financial results for Q4 and full year 2024, with consolidated net revenue increasing 37% in Q4 and 23% for the full year compared to 2023. The growth was primarily driven by record political advertising revenue in the Media segment and strong performance in the Advertising Technology & Services segment.

Key highlights include:

• Media segment revenue up 30% in Q4 and 13% for the year
• Ad Tech & Services segment revenue grew 49% in Q4 and 42% annually
• Corporate expenses decreased 48% in Q4 and 25% for the year
• Company recorded $61.2M impairment charge in 2024
• Made $20M prepayments under credit facility
• Total leverage at 2.8x, or 1.8x net of cash
• Declared quarterly dividend of $0.05 per share

Positive

• 37% Q4 revenue growth and 23% annual revenue growth
• Record political advertising revenue
• Ad Tech segment revenue up 49% in Q4, operating profit up 1,000% for the year
• 48% reduction in corporate expenses in Q4
• Made $20M prepayment on credit facility

Negative

• $61.2M impairment charge in 2024
• Media segment operating profit declined 4% for full year
• 2.8x leverage ratio

Insights

Financial Analyst

Entravision's Q4 and full-year 2024 results present a mixed financial picture with notable strengths and concerning elements. The 37% Q4 revenue growth and 23% full-year growth showcase strong top-line performance, driven by record political advertising in their Media segment and expansion in their Advertising Technology & Services business.

The Media segment delivered 30% Q4 revenue growth but showed troubling profitability trends with full-year operating profit declining 4% despite revenue growth of 13%, indicating margin compression. Meanwhile, the Ad Tech segment demonstrated exceptional performance with operating profit soaring over 1,000% for the full year, suggesting significantly improved operational efficiency.

Most concerning is the $61.2 million impairment charge, which represents approximately 36% of the company's market capitalization. Without details on which assets were impaired, this raises serious questions about long-term value preservation.

Despite this charge, management maintained financial discipline by reducing corporate expenses by 25% year-over-year and making $20 million in debt prepayments. The leverage ratio of 2.8x (or 1.8x net of cash) remains manageable, and the continuation of the $0.05 quarterly dividend suggests confidence in near-term cash flow generation.

Investors should note the cyclical nature of political advertising revenue, which will likely decrease significantly in 2025. The company's investments in news programming and sales team expansion represent potential growth drivers but may pressure margins in the near term.

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Entravision Communications Corporation (NYSE: EVC), a media and advertising technology company, today announced financial results for its fourth quarter and fiscal year ended December 31, 2024.

"We achieved net revenue growth of 37% and 23% during the fourth quarter and full year 2024, respectively, compared to the same periods in 2023, driven primarily by record political advertising revenue in our Media segment and advertising revenue in our Advertising Technology & Services segment," said Michael Christenson, Chief Executive Officer. "Our balance sheet remains strong, and as we look forward to fiscal year 2025 and beyond we continue to focus on providing highly-rated news and content to our audiences, strengthening our digital marketing solutions in combination with our television and radio offerings, and continuing to grow our Advertising Technology & Services segment."

Highlights

• Consolidated net revenue increased 37% for the fourth quarter 2024 and increased 23% for the year ended December 31, 2024 over the respective prior fourth quarter and year ended periods.
• The company achieved record political advertising revenue in 2024, which was the fifth election cycle in a row in which the company benefited from increased political advertising revenue compared to the previous election cycle.
• In 2024, the company significantly enhanced its local news programming, making substantial investments in news operations to capitalize on advertising inventory during its newscasts.
• In late 2024, the company realigned its sales management structure and increased the size of its media sales team and it is our current intention that this will continue in 2025.
• Media segment net revenue increased 30% for the fourth quarter 2024 and increased 13% for the year ended December 31, 2024 over the respective prior fourth quarter and year ended periods.
• Advertising Technology & Services segment net revenue increased 49% for the fourth quarter 2024 and increased 42% for the year ended December 31, 2024 over the respective prior fourth quarter and year ended periods.
• Media segment operating profit increased 62% for the fourth quarter 2024 and declined 4% for the year ended December 31, 2024 over the respective prior fourth quarter and year ended periods.
• Advertising Technology & Services segment operating profit increased 39% for the fourth quarter 2024 and increased over 1,000% for the year ended December 31, 2024 over the respective prior fourth quarter and year ended periods.
• Corporate expenses decreased 48% for the fourth quarter 2024 and decreased 25% for the year ended December 31, 2024 over the respective prior fourth quarter and year ended periods.
• The company incurred an impairment charge of $61.2 million for the year ended December 31, 2024.
• The company made prepayments of $20 million under its credit facility during 2024.
• Total leverage as defined in the company’s credit agreement was 2.8 times as of December 31, 2024. Net of total cash and marketable securities, total leverage was 1.8 times.
• Entravision’s 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. The dividend is payable on March 31, 2025 to shareholders of record as of the close of business on March 17, 2025.

About Entravision Communications Corporation

Entravision is a media and advertising technology company. In the U.S., we maintain a diversified portfolio of television and radio stations and digital advertising services that target Latino audiences. Our advertising technology business consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business. Entravision is 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.

Entravision Communications Corporation Segment Results (Unaudited) (In thousands)
		Three-Month Ended December 31,												Year Ended December 31,
		2024				2023				% Change				2024				2023				% Change
Net Revenue
Media		$	67,260			$	51,654				30	%		$	222,061			$	196,268				13	%
Advertising Technology & Services			39,702				26,602				49	%			142,887				100,775				42	%
Consolidated			106,962				78,256				37	%			364,948				297,043				23	%
Cost of revenue
Media		$	4,838			$	3,291				47	%		$	16,726			$	10,952				53	%
Advertising Technology & Services			23,475				16,013				47	%			85,470				66,262				29	%
Consolidated			28,313				19,304				47	%			102,196				77,214				32	%
Direct operating expenses
Media			28,583				24,921				15	%			110,988				96,925				15	%
Advertising Technology & Services			8,505				4,150				105	%			25,274				16,306				55	%
Consolidated			37,088				29,071				28	%			136,262				113,231				20	%
Selling, general and administrative expenses
Media			12,159				8,961				36	%			42,759				36,000				19	%
Advertising Technology & Services			4,900				3,437				43	%			20,109				13,761				46	%
Consolidated			17,059				12,398				38	%			62,868				49,761				26	%
Depreciation and amortization
Media			3,135				3,013				4	%			12,891				11,975				8	%
Advertising Technology & Services			637				1,431				(55	)%			3,930				4,417				(11	)%
Consolidated			3,772				4,444				(15	)%			16,821				16,392				3	%
Segment operating profit (loss)
Media			18,545				11,468				62	%			38,697				40,416				(4	)%
Advertising Technology & Services			2,185				1,571				39	%			8,104				29			*
Consolidated			20,730				13,039				59	%			46,801				40,445				16	%
Corporate expenses			7,509				14,458				(48	)%			37,498				50,294				(25	)%
Change in fair value of contingent consideration			1				200				(100	)%			(629	)			821			*
Impairment charge			61,220				12,278				399	%			61,220				13,267				361	%
Foreign currency (gain) loss			572				676				(15	)%			692				1,950				(65	)%
Other operating (gain) loss			—				609				(100	)%			—				609				(100	)%
Operating income (loss)			(48,572	)			(15,182	)			220	%			(51,980	)			(26,496	)			96	%
Interest expense			(3,824	)			(4,369	)			(12	)%			(16,472	)			(16,833	)			(2	)%
Interest income			657				1,009				(35	)%			2,458				3,405				(28	)%
Dividend income			—				3				(100	)%			10				35				(71	)%
Realized gain (loss) on marketable securities			—				1				(100	)%			(110	)			(93	)			18	%
Gain (loss) on debt extinguishment			—				—			*					(91	)			(1,556	)			(94	)%
Income (loss) before income taxes from continuing operations		$	(51,739	)		$	(18,538	)			179	%		$	(66,185	)		$	(41,538	)			59	%
Capital expenditures
Media		$	2,543			$	6,148							$	7,089			$	21,208
Advertising Technology & Services			74				1,043								372				3,643
Consolidated		$	2,617			$	7,191							$	7,461			$	24,851

Entravision Communications Corporation Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data)
		Three-Month Period								Twelve-Month Period
		Ended December 31,								Ended December 31,
		2024				2023				2024				2023
Net revenue		$	106,962			$	78,256			$	364,948			$	297,043
Expenses:
Cost of revenue			28,313				19,304				102,196				77,214
Direct operating expenses			37,088				29,071				136,262				113,231
Selling, general and administrative expenses			17,059				12,398				62,868				49,761
Corporate expenses			7,509				14,458				37,498				50,294
Depreciation and amortization			3,772				4,444				16,821				16,392
Change in fair value of contingent consideration			1				200				(629	)			821
Impairment charge			61,220				12,278				61,220				13,267
Foreign currency (gain) loss			572				676				692				1,950
Other operating (gain) loss			—				609				—				609
			155,534				93,438				416,928				323,539
Operating income (loss)			(48,572	)			(15,182	)			(51,980	)			(26,496	)
Interest expense			(3,824	)			(4,369	)			(16,472	)			(16,833	)
Interest income			657				1,009				2,458				3,405
Dividend income			—				3				10				35
Realized gain (loss) on marketable securities			—				1				(110	)			(93	)
Gain (loss) on debt extinguishment			—				—				(91	)			(1,556	)
Income before income taxes			(51,739	)			(18,538	)			(66,185	)			(41,538	)
Income tax (expense) benefit			(3,932	)			5,337				(4,105	)			8,392
Net income (loss) from continuing operations			(55,671	)			(13,201	)			(70,290	)			(33,146	)
Income (loss) from discontinued operations			(687	)			(5,007	)			(78,618	)			17,709
Net income (loss) attributable to common stockholders		$	(56,358	)		$	(18,208	)		$	(148,908	)		$	(15,437	)
Basic and diluted earnings (loss) per share:
Net income (loss) per share attributable to common stockholders, basic and diluted		$	(0.62	)		$	(0.21	)		$	(1.66	)		$	(0.18	)
Cash dividends declared per common share, basic and diluted		$	0.05			$	0.05			$	0.20			$	0.20
Weighted average common shares outstanding, basic and diluted			90,175,742				88,193,240				89,876,538				87,901,938

Entravision Communications Corporation Consolidated Balance Sheets (Unaudited) (In thousands)
		December 31,				December 31,
		2024				2023
ASSETS
Current assets
Cash and cash equivalents		$	95,914			$	67,398
Marketable securities			4,694				13,172
Restricted Cash			786				770
Trade receivables, net of allowance for doubtful accounts			68,319				70,082
Assets held for sale			—				301
Prepaid expenses and other current assets			16,587				16,863
Current assets of discontinued operations			—				217,269
Total current assets			186,300				385,855
Property and equipment, net			60,616				66,932
Intangible assets subject to amortization, net			4,417				7,100
Intangible assets not subject to amortization			177,276				195,174
Goodwill			7,352				50,674
Deferred income taxes			2,650				265
Operating leases right of use asset			40,762				42,868
Other assets			7,905				21,223
Noncurrent assets of discontinued operations			—				95,855
Total assets		$	487,278			$	865,946
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	-			$	8,750
Accounts payable and accrued expenses			53,882				47,776
Operating lease liabilities			7,744				6,748
Current liabilities of discontinued operations			—				208,779
Total current liabilities			61,626				272,053
Long-term debt, less current maturities, net of unamortized debt issuance costs			186,958				197,884
Long-term operating lease liabilities			42,101				45,178
Other long-term liabilities			12,168				4,624
Deferred income taxes			38,405				46,849
Noncurrent liabilities of discontinued operations			—				33,072
Total liabilities			341,258				599,660
Redeemable noncontrolling interest - discontinued operations			—				43,758
Stockholders' equity
Class A common stock			8				8
Class U common stock			1				1
Additional paid-in capital			815,532				743,246
Accumulated deficit			(668,720	)			(519,812	)
Accumulated other comprehensive income (loss)			(801	)			(915	)
Total stockholders' equity			146,020				222,528
Total liabilities, redeemable noncontrolling interest and equity		$	487,278			$	865,946

Entravision Communications Corporation Consolidated Statements of Cash Flows (Unaudited) (In thousands)
		Three-Month Period								Twelve-Month Period
		Ended December 31,								Ended December 31,
		2024				2023				2024				2023
Cash flows from operating activities:
Net income (loss)		$	(56,358	)		$	(18,208	)		$	(148,908	)		$	(15,437	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			3,772				7,671				20,779				28,007
Impairment charge			61,220				12,278				110,658				13,267
Deferred income taxes			(6,995	)			(10,796	)			(10,281	)			(10,965	)
Non-cash interest			61				91				284				355
Amortization of syndication contracts			111				113				450				471
Payments on syndication contracts			(114	)			(114	)			(451	)			(480	)
Non-cash stock-based compensation			1,426				6,645				13,848				23,698
(Gain) loss on marketable securities			—				(1	)			110				93
(Gain) loss on disposal of property and equipment			71				748				277				737
Loss (gain) on the sale of businesses			48				—				45,187				—
(Gain) loss on debt extinguishment			—				—				91				1,556
Change in fair value of contingent consideration			—				6,400				(13,198	)			(2,539	)
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations			—				157				(2,779	)			158
Net income (loss) attributable to noncontrolling interest - discontinued operations			—				—				—				(342	)
Changes in assets and liabilities, net of businesses acquired and disposed of:
(Increase) decrease in trade receivables, net			(519	)			(25,508	)			10,092				(9,247	)
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			11,806				15,025				9,878				7,826
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(1,746	)			11,578				38,668				38,038
Net cash provided by operating activities			12,783				6,079				74,705				75,196
Cash flows from investing activities:
Proceeds from sale of assets/business, net of cash divested			2,486				175				(40,481	)			258
Purchases of property and equipment			(2,174	)			(7,446	)			(8,463	)			(27,327	)
Purchase of businesses, net of cash acquired			—				—				—				(6,930	)
Purchases of marketable securities			(2,303	)			—				(2,303	)			(11,355	)
Proceeds from sale of marketable securities			408				5,242				10,789				43,335
Proceeds from loan receivable			2,888				—				13,636				—
Purchases of investments			—				—				—				(300	)
Issuance of loan receivable			—				—				—				(13,636	)
Net cash provided by (used in) investing activities			1,305				(2,029	)			(26,822	)			(15,955	)
Cash flows from financing activities:
Proceeds from stock option exercises			—				—				—				554
Tax payments related to shares withheld for share-based compensation plans			(2,537	)			(3,899	)			(2,564	)			(4,057	)
Payments on debt			—				(1,250	)			(20,275	)			(215,745	)
Dividends paid			(4,504	)			(4,406	)			(17,975	)			(17,588	)
Distributions to noncontrolling interest			—				—				(1,078	)			(3,380	)
Payment of contingent consideration			(1,350	)			—				(15,650	)			(35,113	)
Principal payments under finance lease obligation			(38	)			(39	)			(148	)			(152	)
Proceeds from borrowings on debt			—				667				—				213,087
Payments for debt issuance costs			—				—				—				(1,777	)
Net cash used in financing activities			(8,429	)			(8,927	)			(57,690	)			(64,171	)
Effect of exchange rates on cash, cash equivalents and restricted cash			—				(3	)			(2	)			(5	)
Net increase (decrease) in cash, cash equivalents and restricted cash			5,659				(4,880	)			(9,809	)			(4,935	)
Cash, cash equivalents and restricted cash:
Beginning			91,041				111,389				106,509				111,444
Ending		$	96,700			$	106,509			$	96,700			$	106,509

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250306185087/en/

For more information, please contact:

Mark Boelke

Chief Financial Officer

Entravision

310-447-3870

ir@entravision.com

Roy Nir

VP, Financial Reporting and Investor Relations

Entravision

310-447-3870

ir@entravision.com

Source: Entravision

FAQ

What was Entravision's (EVC) revenue growth in Q4 2024?

EVC's consolidated net revenue increased 37% in Q4 2024 compared to Q4 2023.

How much did Entravision's (EVC) Ad Tech & Services segment grow in 2024?

EVC's Ad Tech & Services segment revenue increased 42% for the full year 2024, with operating profit growing over 1,000%.

What is Entravision's (EVC) latest quarterly dividend payment?

EVC declared a quarterly cash dividend of $0.05 per share, payable March 31, 2025, to shareholders of record as of March 17, 2025.

What was Entravision's (EVC) leverage ratio at the end of 2024?

EVC's total leverage was 2.8x as of December 31, 2024, or 1.8x net of total cash and marketable securities.

How did Entravision's (EVC) political advertising perform in 2024?

EVC achieved record political advertising revenue in 2024, marking the fifth consecutive election cycle with increased political ad revenue.