Entravision Communications Corporation (NYSE:EVC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET

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Entravision Communications Corporation (NYSE:EVC) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] And our first question today comes from Michael Kupinski from NOBLE Capital Markets.

Analyst
Michael Kupinski

First of all in terms of the TV pacings for the fourth quarter I was wondering if you can give us a little bit more color on what you're seeing in core particularly auto of course which is a big category for you. If you can just give us some thoughts on the categories.

Executive
Christopher T. Young

Michael auto for the fourth quarter is pacing at a minus 7%. There has been some softness primarily arising from the strike activity that recently got settled but that has had a negative impact on our fourth quarter business. Right now auto is a minus 7%.

Analyst
Michael Kupinski

Got you, and then in terms of -- what are your expectations for political in the fourth quarter? Because the thought is that there might -- you might get a little political in the fourth quarter especially with the early primary votes in California and so forth. I was wondering if you can just give us some thoughts on political.

Executive
Christopher T. Young

Well the political -- real political event for us in the fourth quarter is actually first quarter. It's going to be the California primaries. And that's because you had got such a big part of the constituency mailing their ballots in they're going to start advertising early. And we still feel that December will be a pretty hot month for us as far as the California primaries are concerned. So we don't really have much per se on the books as we sit here today. But we do expect that amount could be material. We'll also have a primary early on in Nevada that also could yield some pretty interesting results. And we're already starting to see that money trickle in as we speak.

Analyst
Michael Kupinski

Got you. And at least -- for at least your thoughts at least for now with the TV pacing down 19% you're not factoring in much political into that guidance I suppose?

Executive
Christopher T. Young

Yes. That's just the pace and we've got no real political factored into that minus 19% that's correct.

Executive
Walter F. Ulloa

Yes. And we haven't -- Michael we have not -- we're not forecasting any political dollars in Q4 as well. But we are seeing signs of political activity in some of the states where we operate certainly in Nevada will be an early primary. California has moved up to March now Texas as well in March. So even though we don't have any -- we don't have any significant revenue on the books yet in political we expect to see some activity in December. But again nothing forecasted.

Analyst
Michael Kupinski

Got you. And I know Walter you had in the past indicated that you'd like to see digital as a significant portion of the company and your recent stumble in the digital area. Has that changed your mind about the prospect of investments in this area? What are your thoughts in terms of the growth of the business? Are you optimistic that you can