On November 2, 2023, Entravision Communications Corp (EVC, Financial), a leading global advertising solutions, media, and technology company, announced its financial results for the third quarter of 2023. The company reported a 14% increase in net revenue, reaching $274.4 million, driven by strength in its Digital segment. However, net income attributable to common stockholders saw a significant decrease of 71% compared to the same period last year.
Financial Highlights
Entravision's Q3 2023 financial results showed a record quarterly advertising revenue of $274.4 million, a 14% increase year-over-year. However, the company's net income attributable to common stockholders decreased by 71% compared to the prior-year quarter, and Consolidated EBITDA was down 45% compared to the prior-year quarter. Operating cash flow, on the other hand, increased by 45% over the prior-year quarter.
Despite the decline in net income, the company's Chief Financial Officer, Chris Young, highlighted the strength in their Digital segment, which now comprises 84% of total revenue. He also mentioned the signing of two new partnerships with Match and Pinterest to further diversify their portfolio of digital solutions.
Financial Tables Summary
Entravision's unaudited financial highlights for the three- and nine-month periods ended September 30, 2023, showed a 14% and 19% increase in net revenue, respectively. However, the net income attributable to common stockholders for the same periods decreased by 71% and 86%, respectively. The cost of revenue - digital and operating expenses also saw increases in both periods.
The company's balance sheet as of September 30, 2023, showed cash and marketable securities totaling $128.7 million. Total debt as defined in the company’s credit agreement was $211.1 million. Net of $50 million of cash and marketable securities, total leverage as defined in the company’s credit agreement was 2.1 times as of September 30, 2023. Net of total cash and marketable securities, total leverage was 1.1 times.
Looking Forward
Despite the challenges, Entravision remains optimistic about its future performance. The company anticipates increased political spending ahead of the 2024 elections, which will benefit its Television and Audio segments and Consolidated EBITDA in the coming quarters.
Explore the complete 8-K earnings release (here) from Entravision Communications Corp for further details.
