SANTA MONICA, CALIF. — The first three months of 2017 have been kind to a company dedicated to super-serving Hispanic media consumers across the U.S.
Entravision Communications, which not only owns radio stations but is also the largest Univision and UniMás affiliate partner in the nation, saw its net income rise 15% to $2.6 million (3 cents per diluted share) from $2.3 million (2 cents) in Q1.
The good performance came as Entravision’s net revenue slipped 1%, to $57.5 million.
Why was this good?
The net revenue decline represents a $600,000 year-over-year drop, and Entravision says that of the overall decrease, approximately $1.2 million was attributable to its radio segment and was primarily due to a decrease in political advertising revenue, which was not material in 2017, and decreases in local and national advertising revenue.
Entravision’s radio division experienced a 7% net revenue drop, to $15.7 million.
This indicates that TV is powering Entravision. In Q1, television segment revenue improved by $1.1 million (3%), to $37.7 million, thanks to increases in national and local ad revenue and a jump in retransmission consent revenue—a new lynchpin for broadcast television company revenue.
Meanwhile, Entravision’s saw a $600,000 revenue decrease in its digital segment, primarily attributable to lower national revenue. This saw Q1 digital revenue dip 13%, to $4.1 million.
Consolidated adjusted EBITDA was flat at $12.6 million, while Free Cash Flow was up 11%, to $7.3 million.
“Our first quarter results were impacted by the absence of political advertising revenue in the first quarter compared to the prior year,” Entravision Chairman/CEO Walter Ulloa said, noting that the company continued to build its digital footprint through the purchase of Headway, a provider of mobile, programmatic, data and performance digital marketing solutions primarily in the U.S., Mexico and in Latin America. “Looking ahead, we remain well positioned to build on our success in further attracting Latino audiences, expanding our advertiser base and monetizing our reach to the benefit of our shareholders,” Ulloa said.
CASH DIVIDEND SET TO REWARD SHAREHOLDERS
Aside from the net income increase in Q1, holders of “EVC” shares are likely happy with the announcement that Entravision’s board of directors has given the OK to a quarterly cash dividend of $0.03125 per share of the company’s Class A, Class B and Class U common stock. The aggregate amount of the dividend payment is roughly $2.8 million, and the quarterly dividend will be payable on June 30 to shareholders of record as of the close of business on June 15.
Entravision’s common stock will trade ex-dividend on June 13.