Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Entravision has great opportunities for growth and value creation in each of its business segments, and I'm looking forward to being part of that effort |
| Lastly, I'd like to note that we were pleased to announce during the quarter that Entravision once again earned the Great Place to Work certification |
| On a consolidated basis, we had a record quarterly revenue of $273.4 million, an increase of 23% year-over-year and ahead of our previously disclosed d pacing's of plus 18% |
| This certification speaks to our strong company culture, and I would like to thank all of our employees for their contribution and dedication to our success |
| On a pro-forma basis, digital revenues improved 18% compared to the prior year period |
| Meta, our largest platform, continues to outperform |
| TV and audio remain resilient, and while macro conditions are uncertain, Entravision continues to be well positioned to benefit from increased political ad spend in the back half of this year |
| They produce the plus 21% in Q2, up from a plus 15% in Q1, and up from a plus 7% in Q4 last year |
| In addition, we were pleased that our board of directors once again approved a quarterly $0.05 dividend |
| The main drivers were our commercial partnership business with revenue up 26%, our digital audio business, which saw a revenue increase of 13%, and various acquisitions which did not contribute to revenue in the comparable period |
| Fortunately, Spanish language radio has been performing better than the general market, and while our national clients are being very cautious based on the current economic conditions, political spending may increase in key states discussed earlier, which will help support our national sales |
| We're excited to have you on board and look forward to our continued growth and success under your leadership |
| So that's the priority for now, figure out ways to grow revenue and grow free cash flow organically |
| Our local TV business, however, remained fairly resilient as the team has done a fantastic job executing despite challenging conditions |
| Our digital segment revenue was $229.9 million for the quarter, up 32% year-over-year |
| As of today, revenue from our digital segment is pacing plus 25% over the prior year |
| Retail is up 7%, health care is up 7% |
| So they're clearly with the meta-platform on track for continued growth |
| Cost of revenue in the quarter totaled $195.8 million, up 35% from $145 million in the prior year period, and was driven by the increase in our digital segment revenue |
| Retransmission revenue for the quarter was $9.3 million, which was up 3% year-over-year |
| Local has been pretty resilient |
| We're still kind of in the positive, particularly for TV |
| I'm excited and honored to join the Entravision team and to be here on my first earnings call as Entravision's CEO |
| Mike has been working on that strategy and has us all focused on working to improve the margins of our existing assets |
| On a more granular basis, core television revenue increased 1%, national core revenue decreased 12%, and local core revenue increased 4% year-over-year |
| Jeff Liberman So, David, we are seeing a little bit of political, not very much, nothing to really count in, but we do expect the second half of the year to become more robust |
| Would those be more than offset the types of, kind of missed cash flow opportunities that you would have from the margin improvement? I mean, could we look, in other words, are we anticipating that we would see substantial growth given those market opportunities that they're presenting you? Jeff Liberman It's too early to tell, but our hope is yes, but we don't have that in writing at this point, but that is obviously the goal |
| Operating expenses in the quarter totaled $56.6 million, up 20% from $47.4 million in the prior year period |
| To conclude, looking ahead, we will continue to seek ways to drive growth and expand our footprint with an increased focus on organic growth |
| Mike, congratulations |
| Statement |
|---|
| Television revenue was $29.9 million in the quarter, down 8% compared to prior year period, largely due to decline in political revenue and continued pressure on national advertising spending |
| Audio revenue totaled approximately $13.5 million for the quarter and decreased 9% year-over-year, largely driven by the lack of political ad revenue, as well as national and local revenue declines as compared to second quarter of 2022 |
| Our TV and audio segments revenue declined 8% and 9% respectively year-over-year |
| As Jeff will address, both the TV and audio segments continued to see weakness on the national front and face tough comparisons as we copped against last year's strong political revenue performance |
| Consolidated EBITDA totaled $14.2 million for the quarter, down 37% from $22.5 million in the prior year period |
| On a core basis, exploding political, total revenue was down 6%, with local revenue down 5%, and national revenue down 7% |
| That was effective July 1st, so that's not reflected in the Q2 print, but certainly it will put some margin pressure in the back half of the year |
| Diluted earnings per share for the quarter, 2023, were negative $0.02 compared to a positive $0.10 in the same quarter of last year |
| James Dix I guess just in terms of just looking at the demand versus expectations, just on the revenue side, and I guess in particular on advertising, it's looking like TV and radio on the core basis are a little weaker than expected, digital, maybe a little stronger |
| This increase was partially offset by a decrease in our programmatic business, primarily due to the performance of sematics, which continued to face headwinds from crypto and fintech advertising |
| The one category that's down for us, which was a bit of a surprise, but quick service restaurants, the likes of McDonald's and whatnot, they've pulled back somewhat |
| National's really the problem of the mix |
| That's part of the business that we have a bit more control over, but national's really the problem |
| Digital did miss |
| The feeling, the sentiment is that we're through the worst of it, but now agencies want to start seeing that data come out before they start making commitments |
| So we were informed by Meta a few months back that our commissions or our Meta business would be dropping from 10% to 7% |
| Please refer to Entravision's SEC filings for a list of risks and uncertainties that could impact actual results |
| Lastly, our audio segment is pacing minus 15% over the prior year period, with core audio excluding political both thus far in the prior year quarter, pacing at a minus 12% |
| The decline was primarily driven by a combination of both non-returning political revenue at our broadcasting business coupled with an increase in cost of revenue operating expenses and corporate expenses that I just spoke to |
| Our TV segment is pacing minus 17% over the prior year period, with core TV advertising excluding political both thus far in the quarter and the prior year, pacing at a minus 10% |
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