Digital, Radio Help Offset TV for Entravision
Entravision Communications Corporation net revenue increased to $65.4 million in the fourth quarter of 2015, up slightly — $0.1 million — from the same period a year ago. The company attributed about $2.5 million of the overall increase to increases in local and national digital ad revenue and another $1.1 million to the same increases for radio.
The increases partially offset a $3.5 million loss in television, caused by a lack of political advertising and a drop in local advertising revenue. National television ad revenue increased, as did revenue from retransmission consent fees.
Cost of revenue increased to $2.6 million for the quarter, from $1.5 million compared to the same period a year ago, an increase of $1.1 million, due to higher online media costs associated with the increase in digital net revenue.
Operating expenses rose to $39.6 million from $38.2 million mostly due to higher operating expenses for Pulpo Media Inc., which Entravision acquired in 2014, and higher rent and salaries.
“We continued to build our digital footprint through the acquisition of Pulpo Media in June 2014, which provides us with an integrated platform to allow advertisers and marketers to connect with Latino audiences,” said Entravision Chair/CEO Walter Ulloa. Looking ahead, he said the company remains “well positioned to build on our success in attracting Latino audiences, expanding our advertiser base and monetizing our reach.”
The Entravision board approved a quarterly cash dividend to shareholders of $0.03125 per share of the company’s Class A, Class B and Class U common stock, which aggregated, comes to about $2.8 million. The quarterly dividend will be payable on March 31 to shareholders of record as of the close of business on March 11, and the common stock will trade ex-dividend on March 9.
The company prepaid $20 million of term loans under its senior secured term loan credit facility in Q4.