Entravision Communications’ Q3 earnings report looked much different than ones in the past, following its operational restructuring into two new segments. While we now won’t see specifics for the company’s radio division, we know that broadcast revenue is up.
The new structure is a direct result of Entravision spinning its $500 million digital advertising representation business as a response to the conclusion of Meta’s Authorized Sales Partner program.
In the third quarter, Entravision’s Media segment, which includes radio, television, and digital ad sales, posted a year-over-year revenue increase of 23%, rising to $59.8 million from $48.75 million. The broadcaster operates 46 Spanish-language radio stations and the Latino Radio Network.
Meanwhile, the Hispanic-focused company’s Advertising Technology & Services segment, which includes Smadex’s programmatic ad platform and the mobile growth product Adwake, saw revenue climb 30%, reaching $37.35 million, up from $28.67 million.
This combined growth lifted Entravision’s total net revenue to $97.16 million, a significant increase from the $77.42 million reported in Q3 2023. However, the company recorded a net loss of $11.98 million, compared to net income of $2.72 million in the prior year. The loss is primarily attributed to a 30% increase in operating expenses, totaling $52.73 million.
CEO Michael Christenson commented, “Our balance sheet remains strong, and we are focused on providing highly-rated news and content to our audiences, strengthening our digital marketing solutions in combination with our television and radio offerings, and continuing to grow Smadex.”
Thank you for sharing this financial analysis of Entravision. Despite the net loss in the third quarter, their revenue growth in media and advertising technology services is impressive. I hope their new business restructuring will bring long-term benefits.