Entravision Global Partners, the global digital commercial partnerships business of Entravision Communications, was sold during the second quarter of 2024. When one strips out the discontinued operation from the financials, the company rooted in U.S. Hispanic broadcast media had a good quarter, with net revenue up 12% on that basis.
Factor that discontinued operation in to the numbers, and Entravision saw a 1,650% increase in its net loss year-over-year in Q2.
Investors looked past that, with Entravision’s NYSE-traded stock surging by 14.2% within moments of the earnings report’s release.
Overall net revenue grew to $82.65 million, from $73.72 million, as operating expenses increased to $46.12 million, from $41.47 million.
This is where a closer examination of Entravision’s net income is needed. When looking strictly at continuing operations, the company swung to net income of $3.73 million from a net loss of $5.83 million in Q2 2023.
Then, there is the substantial net loss from discontinued operations of $35.41 million, a swing from net income of $3.84 million a year ago.
Put it all together, and Entravision’s net loss attributable to common shareholders ballooned to $31.68 million (-$0.35 per share), widening from a net loss of $1.99 million (-$0.02) in Q2 2023.
In prepared comments ahead of a 4:30pm Eastern conference call for investors and analysts on Thursday, CEO Michael Christenson commented that Entravision remains focused on its 2024 priorities of maximizing political revenue, providing “highly-rated news and content” to consumers, strengthening its digital marketing solutions in combination
with our television and audio offerings, and continuing to grow the Smadex programmatic ad purchasing platform.
With the release of the Q2 results, 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, payable on September 30 to shareholders of record as of the close of business on September 16.
DIGITAL FUELS THE DOLLARS
Once again, Entravision proved that it is a global digital company moreso than a Spanish-language broadcast media operation in the second quarter.
How so? Digital revenue increased by 36% to $41.07 million from $30.23 million, while Television revenue declined to $28.58 million from $29.94 million.
Radio? Further revenue erosion was seen in the audio segment, with revenue dipping to $13 million from $13.54 million.
Consolidated EBITDA declined to $10.47 million from $14.21 million.
