Net revenue decreased to $50.1 million in the quarter, or 6%, from $53.3 million in Q3 2010, a decrease of $3.2 million. Of the overall decrease, $2.5 million came from the radio side and was primarily blamed on the absence of ad revenue from the World Cup in 2011 compared to 2010 and a decrease in political ad revenue.
Additionally, $0.7 million of the overall decrease came from the television side and was primarily attributable to a decrease in national advertising and the same reasons as radio’s decline. It was partially offset by an increase in retransmission consent revenue.
Operating expenses were $31.2 million—flat across both Q3 2010 and Q3 2011. An increase in salary expense as a result of the partial restoration of employee salaries in 2011 and expenses associated with Lotus/Entravision Reps were offset by a decrease in expenses from a large LA promotional event during the Q3 2010, which event did not take place in 2011.
For YTD, net revenue decreased to $144.4 million from $149.8 million for the nine-month period ended September 30, 2010, a decrease of $5.4 million. Of the overall decrease, $4.0 million came from the radio segment (same as Q3’s reasons).
Additionally, $1.4 million of the overall decrease came from the television segment and was blamed on to the same decreases and increases as Q3.
FY operating expenses increased to $93.0 million from $92.1 million for the nine-month period ended September 30, 2010, an increase of $0.9 million. The same reasons were given as mentioned in Q3.
Said Walter Ulloa, Entracision CEO: “During the third quarter of 2011, we faced challenging comparisons to last year’s third quarter…Nevertheless, our audience shares remain strong in the nation’s most densely populated Hispanic markets, and we believe we are well positioned to benefit as the U.S. Hispanic market continues to expand and advertisers increasingly recognize the importance of reaching our target audience. We remain focused on improving our operating performance while continuing to carefully manage our costs.”