Hispanic broadcaster Entravision Communications delayed its Q4 2023 earnings call after a bombshell decision from Meta to end its Authorized Sales Partner program. This development could lead to a substantial impact on Entravision’s revenue streams.
The cut would affect Entravision Global Partners, the company’s digital commercial partnerships division. Entravision’s digital portfolio represents various clients including TikTok-owner ByteDance, X Corp., Spotify, Snap, and Pinterest across 31 countries. The Meta ASP program has been a significant source of income, accounting for 53% – $586.4 million – of its $1.107 billion in consolidated revenue for FY 2023.
Despite the challenges, the Q4 earnings report surpassed analyst expectations with a revenue jump to $320.06 million, an 8% increase. However, there was a significant drop in consolidated EBITDA to $16.25 million and a widened net loss of $18.21 million. Digital segments saw a 19% year-over-year growth, overshadowing a decline in Audio, which fell by 31%. The group operates 45 radio stations across the US.
Television fell by 32%, comparatively.
Entravision CEO Michael Christenson said, “While we are disappointed in Meta’s decision, we are confident in Entravision’s long-term opportunities given the strength of our advertising and marketing platforms and the need for our solutions globally. We are conducting an extensive review of our strategy and cost structure to reinforce our operating foundation and ensure we are best positioned to capitalize on Entravision’s global, market-leading advertising, media and technology solutions. Our balance sheet is solid with a strong cash position to support the business as we navigate these changes.”
