Entravision Communications (EVC) Q3 2024 earnings summary

Executive summary

• Completed sale of the EGP business in Q2 2024, shifting focus to media and advertising technology segments and realigning management and operations.

• Q3 2024 net revenue rose 25% year-over-year to $97.2M, driven by political advertising and strong growth in Smadex and Adwake.

• Achieved profitability in the expanded news operation and expanded initiatives to serve Latino audiences and advertisers.

• Anticipates significantly lower future revenue and cash flow due to EGP divestiture.

• Quarterly cash dividend of $0.05 per share declared for Q4 2024, payable December 31, 2024.

Financial highlights

• Q3 2024 consolidated revenue was $97.2M, up 25% year-over-year; nine-month revenue was $258.0M, up 18%.

• Q3 2024 net loss attributable to common stockholders was $12M, compared to net income of $2.7M in Q3 2023, mainly due to discontinued operations and impairment charges.

• Free cash flow for Q3 2024 was $9.3M, down from $17M in Q3 2023, reflecting the absence of EGP business cash flow.

• Q3 2024 operating income was $7.6M versus a $(3.8)M loss in Q3 2023.

• Q3 2024 EPS was $(0.13) versus $0.03 in Q3 2023.

Outlook and guidance

• Media segment revenue for Q4 is pacing 28% higher than Q4 2023, though final results may be lower.

• Advertising Technology and Services segment revenue for Q4 is pacing 30% above Q4 2023.

• Capital expenditures for full year 2024 expected to be approximately $7M, funded by cash and operations.

• Board approved a $0.05 per share dividend for Q4 2024, totaling about $4.5M.

• Management expects to meet operating and capital needs for at least the next 12 months.