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

Nov 07, 2019 • 05:00 pm ET


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


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Walter F. Ulloa

period total television revenues were up 5%.

Automotive our largest advertising category was down 4% for our TV segment and represented approximately 32% of our total television advertising revenue. You saw an increase of 2% in Tier 2 expenditures that were offset by declines in both Tier 1 and Tier 3. The growth in Tier 2 was a result of increased spending by Toyota Ford Hyundai Volkswagen and Audi. Beyond automotive top 10 advertising categories that generated growth during the third quarter were services which increased 3%; travel and leisure increased 16%; health care grew 3%; and quick service restaurants were up 14%. While increased spending from Jack in the Box Pizza Hut Del Taco and McDonald's. Overall we added 32 new advertisers who spent more than $10000 during the third quarter which totaled approximately $607000 in advertising revenue. Notable new brands in the third quarter included Now Optics Car Care Council Zuech Chevy Weston and Floridian International Adjusters. Turning to our ratings performance, our Univision television stations built upon their marketing leadership in July 2019.

For adults 18 to 49 in early local news our Univision television stations finished ahead of their Telemundo competitors in 14 of 17 markets where we have head-to-head competition. Additionally among adults 18 to 49 our early local newscasts are ranked #1 or 2 against English-Spanish competitors in 10 markets. Our late local news are ranked number #1 or 2 against English and Spanish competitors in 8 markets. During a full week our Univision and UniMs stations combined have a cumulative audience of 4 million persons 2 plus compared to Telemundo's 3.2 million persons 2 plus. We have 25% more viewers than Telemundo in our Univision television footprint. During the weekday prime time when compared all -- comparing all stations we had higher ratings in at least 1 of the big 4 networks in 10 markets among adults 18 to 49 and in 15 markets among adults 18 to 34. The telecast for Univision's Premio Juventud award show on July 18 was among the top 10 broadcast TV prime time programs for the night among adults 18 to 34 in 17 of our Univision and television markets regardless of language.

Among adults 18 to 49 and 25 to 54 the show ranked among the top 10 in 13 and 11 of our markets respectively regardless of language. Turning to our audio division, audio revenues were down 6% during the third quarter compared to the prior year. Local revenues were up 2% and national revenues were down 19% in the quarter. Excluding political core radio revenues were down 5% in the third quarter. There were 2 key areas that contributed to the decline in our radio division. The first is Los Angeles where we combined KLYY along with along with KSSE and KSSD to form a superstation which based on Nielsen audio simulcast rules can be combined into 1 set of call letters. Based on this change we saw a decline in national revenue. With