Entravision Communications (EVC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue rose 12% year-over-year to $82.7M, driven by digital and political advertising growth, but the sale of the EGP business, including Adsmurai and Jack of Digital, marked a strategic shift and is expected to materially reduce future digital revenue and cash flow.

• Net loss attributable to common stockholders was $31.7M for Q2 2024, mainly due to discontinued operations and losses on the EGP sale.

• Digital segment accounted for 50% of Q2 2024 revenue, with television and audio at 34% and 16%, respectively; future periods will see a higher media segment contribution.

• Strategic investments were made in news production and sales to expand reach and capitalize on political advertising opportunities.

• Declared a quarterly cash dividend of $0.05 per share, payable September 30, 2024.

Financial highlights

• Q2 2024 net revenue: $82.7M, up 12% year-over-year; six-month revenue: $160.8M, up 14%.

• Q2 2024 digital segment revenue: $41.1M (up 36% year-over-year); television: $28.6M (down 5%); audio: $13.0M (down 4%).

• Q2 2024 free cash flow was $15.7M, up from $2.3M in Q2 2023; six-month free cash flow: $46.3M, up 44%.

• Consolidated EBITDA for Q2 2024 was $10.5M; for six months ended June 30, 2024, $15.0M.

• Net loss attributable to common stockholders: $(31.7)M in Q2 2024, mainly due to discontinued operations.

Outlook and guidance

• Digital segment revenue pacing +17% for Q3 2024 year-over-year.

• Television segment revenue pacing +9% for Q3 2024, with expectations for further growth as political advertising increases.

• Audio segment revenue pacing flat for Q3 2024, with anticipated growth from political advertising.

• Full-year 2024 capital expenditures expected to be approximately $7 million, funded by cash on hand and operating cash flow.

• Revenue and cash flow from operations are expected to be significantly lower in future periods due to the EGP business sale.