Net revenue increased to $53.3 million for Entravision’s Q3, up from $50.8 million in Q3 2009, an increase of $2.5 million. Of the overall increase, $2.3 million came from the television side (7%) — retransmission consent revenue, ad revenue from the World Cup and midterm elections ad revenue. Additionally, $0.2 million (1%) of the overall increase came from Entravision’s radio stations (and was also derived from the World Cup and elections).
Entravision CEO Walter Ulloa said their strategic plan has helped both ad revenues and ratings. He mentioned that many of their TV stations are now the most-watched in their markets, regardless of language. “We are well-positioned to continue to capitalize on the advertising market recovery, given the operating leverage in our business model.”
Ulloa said for the TV station group, several of the key advertising categories have shown consistent improvement throughout the quarter – specifically the Automotive (up 26%), Retail (up 19%) and Product Brand Name (up 15%) categories. Automotive was driven by Dealer Association spending, for the most part, but he’s also seeing steady growth from the local dealers as well. He cited a recent Bureau of Labor Statistics consumer expenditure survey showing that in 2009, Hispanic customers actually increased their automotive spending by 29%, compared to the same period in 2008.
Also for TV, retail growth came from advertisers including JCPenney, Rooms To Go and Mattress Firm.
For radio, Ulloa said national revenue was up 25% and local revenue was down 6%. Total revenue was up seven of the first nine months of the year. The top ad categories for radio were (in order of spend) Automotive (up 31%), Travel and Leisure, Retail and Telecommunications. “We also saw double digit growth in Media, Healthcare, Political and DR,” Ulloa said.
Dealer Association radio spend was up 268% in the quarter, the third in a row.
Operating expenses increased to $31.2 million from $30.6 million, an increase of $0.6 million. The increase was primarily attributable to an increase in national rep fees and other expenses associated with the increase in net revenue.
Net revenue increased to $149.8 million for FY 2010 from $141.2 million for the nine-month period ended September 30, 2009, an increase of $8.6 million. Of the overall increase, $6.7 million came from the television side and was derived from ad revenue from the World Cup, retransmission consent revenue, and political ad revenue. Additionally, $1.9 million of the overall increase came from the radio segment and was attributable to ad revenue from the World Cup, and political and census ad revenue.
Operating expenses increased to $92.1 million for FY 2010 from $92.0 million for the nine-month period ended September 30, 2009, an increase of $0.1 million. The increase was primarily attributable to an increase in national rep fees and other expenses associated with the increase in net revenue, partially offset by a decrease in salary expense due to reductions of personnel and salary reductions implemented in 2009.
