Hispanic-media-focused Entravision Communications reported its Q3 2023 financial results, highlighting the significant growth in its digital revenue sector over radio and TV. The company’s quarterly advertising revenue hit a record $274.4 million, marking a 14% increase from the previous year. 84% of this revenue was attributed to their digital division.
Digital net revenue surged by 23%, reaching $231.49 million, up from the previous $188.88 million. In stark contrast, the audio division net revenue, which includes the company’s 45 radio stations, faced a decrease of 19%, dropping to $13.38 million from $16.5 million. Similarly, TV net revenue witnessed a decline of 17%, settling at $29.55 million.
Operating expenses also saw an increase, with digital expenses growing by 21% to reach $23.17 million. Consequently, even as Entravision worked on its “digital transformation strategy”, which included new partnerships with Match and Pinterest, the consolidated EBITDA saw a decline of 45%, down from $25.97 million to $14.19 million. Operating income faced a 68% reduction, ending at $5.13 million.
Net income for Q3 2023 dipped by a sheer 70%, translating to $2.72 million, a decrease from the previous $9.39 million, in line with analyst projections.
