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

quarter of 2018 reaching 2.7 million downloads which represents a 600% increase when compared to last year. We heard the industry loud and clear when it comes to digital audio needs. That's why we are developing new audio solutions to keep fostering this growth. We'll share more about this business unit and new projects in the quarters to come. And connecting with our communities is at the core of Entravision's purpose as a company.

As a result of our local efforts we distributed over 3500 stories and videos to millions of Latinos including 185 million video views throughout our various digital touch points. This represents a 60 -- 76% growth versus -- in the third quarter versus the previous quarter and 113% growth versus the year prior. We also delivered 9.6 million audio streams to our fans which represents a 16% growth versus prior year. This increased engagement will help us boost our unique value proposition for both consumers and clients in 2020. Now turning to our fourth quarter pacings, it's important to remember that we generated approximately $8.7 million in political revenue in the prior year's fourth quarter. That said our total television revenue is pacing minus 19%. Excluding political our TV business is currently pacing minus 4% in the fourth quarter. Our audio business is currently pacing minus 12% in the fourth quarter. Excluding political our audio business is pacing minus 7%. Digital revenues are currently pacing plus 7% in the fourth quarter compared to the prior year period.

In summary our third quarter results were largely driven by continued softness in our digital and radio businesses while our TV results were flat over the prior year period. We continue to work on executing our strategy to further build on our unique audience reach and targeting capabilities while proactively managing our costs. Starting in the third quarter we made several important management changes in our broadcast and digital business units. As a result of these management changes we are seeing steady improvement in our broadcast and digital units in the fourth quarter and we expect this improvement to continue to strengthen in 2020.

I will now turn the call over to Chris Young to take us through the numbers. Chris?

Christopher T. Young

Thank you, Walter and good afternoon everyone. As Walter has discussed net revenue for the quarter was down 8% to -- at $68.8 million compared to $74.6 million in the same quarter of last year. Operating expenses decreased 2% to $43.3 million and consolidated adjusted EBITDA decreased 19% to $9.1 million. For the quarter revenues in our TV segment were flat at $36.4 million. During the third quarter last year we generated $1.5 million in political which did not return. This shortfall was offset from an additional $1.5 million in spectrum usage rights revenue which totaled $2.7 million during the quarter. Retransmission consent revenue for the quarter was $8.8 million and was up 4% over the prior year period. Radio net revenue for the quarter was down 6%