Entravision Q2 was up 9% on World Cup

By on Aug, 7 2014 with Comments 0

Entravision Communications CorporationNet revenue increased to $61.8 million for the quarter from $57.0 million in Q2 2013, an increase of $4.8 million. Of the overall increase, $3.5 million was generated by the television segment and was primarily attributable to ad revenue from the World Cup, and an increase in retransmission consent revenue. Additionally, $1.3 million of the overall increase was generated by the radio segment and was also attributable to advertising revenue from the World Cup.

Operating expenses increased to $35.0 million in the quarter, from $33.4 million in Q2 2013, an increase of $1.6 million. The increase was primarily attributable to an increase in salary expense and an increase in employee benefits costs and payroll taxes associated with the increase in salary expense.

Corporate expenses increased to $5.3 million for the three-month period ended June 30, 2014 from $4.7 million for the three-month period ended June 30, 2013, an increase of $0.6 million. The increase was primarily attributable to fees associated with the acquisition of Pulpo Media, an increase in salary expense and digital media-related expenses, partially offset by a decrease in non-cash stock-based compensation. On 6/18, Entravision completed the acquisition of 100% of the common shares of Pulpo Media, a leading provider of digital advertising services and solutions focused on Hispanics in the U.S. and Latin America. The transaction was funded from cash on hand, for an aggregate cash consideration of $15.0 million, net of cash acquired of $0.7 million, and contingent consideration with a fair value of $1.4 million as of the acquisition date.

1H results

Net revenue increased to $114.5 million for the six-month period ended June 30, 2014 from $106.0 million for the six-month period ended June 30, 2013, an increase of $8.5 million. Of the overall increase, $6.4 million was generated by our television segment and was primarily attributable to advertising revenue from the World Cup, and an increase in retransmission consent revenue. Additionally, $2.1 million of the overall increase was generated by our radio segment and was primarily attributable to ad revenue from the World Cup and an increase in national ad revenue.

Operating expenses increased to $68.5 million for the six-month period ended June 30, 2014 from $65.3 million for the six-month period ended June 30, 2013, an increase of $3.2 million. The increase was primarily attributable to an increase in salary expense and an increase in employee benefits costs and payroll taxes associated with the increase in salary expense.

Corporate expenses increased to $10.1 million for the six-month period ended June 30, 2014 from $9.2 million for the six-month period ended June 30, 2013, an increase of $0.9 million. The increase was primarily attributable to fees associated with the acquisition of Pulpo Media, an increase in salary expense and digital media-related expenses, partially offset by a decrease in non-cash stock-based compensation.

Said Walter Ulloa, Chairman and CEO: “During the second quarter, we achieved continued growth in core advertising revenue (excluding retransmission consent revenue and political advertising revenue) as our television segment again outperformed the television broadcast industry, reflecting the contributions from our broadcast of the World Cup. Our radio operations also produced revenue growth that we believe will be among the best in the industry. Continuing the trend of the last several years, we also experienced an increase in retransmission consent revenue. We also improved our free cash flow and net income over the second quarter of 2013 as we benefited from the successful refinancing of our debt last August. We have continued to build our digital footprint and marketing solutions capabilities, which provide us with an integrated platform to allow advertisers and marketers to connect with Latino audiences. Looking ahead, we remain well positioned to build on our success in attracting Latino audiences, expanding our advertiser base and monetizing our reach to the benefit of our shareholders.”

The Company announced 8/5 that its board has approved a quarterly cash dividend to shareholders of $0.025 per share of the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.2 million. The quarterly dividend will be payable on September 30, 2014 to shareholders of record as of the close of business on September 15, 2014, and the common stock will trade ex-dividend on September 11, 2014. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis. Any decision to pay future cash dividends will be subject to further approval by the board.

About The Author: Carl has been with RBR-TVBR since 1997 and is currently Managing Director/Senior Editor. Residing in Northern Virginia, he covers the business of broadcasting, advertising, programming, new media and engineering. He’s also done a great deal of interviews for the company and handles our ever-growing stable of bylined columnists.

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