Q2 net revenue shrunk -23% at Hispanic radio and television group Entravision, mirroring results seen lately at mainstream broadcast companies. The decline was based on a Q2 2009 net of $48.7M, compared to $62.9M in the same period of 2008. Television stations were responsible for just over half of that $14.2M cash loss, but its drop was less precipitous than on the radio side.
TV went from $38.9M to $31.7M for a -18% decrease, while radio lost just $200K less of a much smaller revenue pool, going from $24M to $17M for a -29% decrease. The company’s total EBITDA was at -27%; and free cash flow was at -47%.
Walter Ulloa said that the company is looking to save $20M in costs over the year.
Automotive and fast food categories have been hurting. There are signs that both are starting to bounce back. And the sales staff has been strengthened when tasked with bringing in new accounts in new categories to make up for shortfalls.
$2.9M was generated via retransmission consent contracts, a relatively new and stable income stream for the television side of the business.
Entravision has been doing well with soccer coverage all year and is really looking forward to benefitting from the 2010 World Cup. It is also already well into the process of trying to identify markets in which it operates where political may be hot – it is already anticipating Sen. Kay Bailey Hutchison’s (R-TX) run for governor in a state where it operates in several markets.
Radio: National down 28%, local down 30%. There was some lessening of the loss rate in June. This is despite solid ratings performance.
The company is working on building interactive properties, and is using radio to drive web traffic. Income in this area is increasing, and both audience and advertiser is showing interest. It’s expanding into online classifieds, targeted to Hispanics.
As for 3Q outlook, July revenues were said to be down only about -20% and execs wouldn’t even look so far ahead as to make a ballpark prediction for August, the month that has already started. The company is seeing a benefit from Cash for Clunkers, and has been selling the concept to auto clients for a month and a half.
Entravision stated that it is not looking to spin off any radio or television stations.