Hispanic media company Entravision is struggling: Its radio stations are underperformers, its Headway digital arm is exposed to a ravaged Argentine Peso, and its TV stations aren’t lighting up the world, either.
Investors have reacted on Wall Street, with EVC heading to a fresh five-year low on Thursday.
At the Closing Bell, Entravision was off 4 cents to $2.08.
That puts EVC some 32 cents off of where it was a week ago, when it started its most recent downturn. And, it comes just six months after a $3.45 close.
Worse yet, one year ago shares were flirting at $4 per share.
With a 1-year target estimate of $4.50, and a market cap of $175.9 million, Entravision is making notable moves to bring more positive news to shareholders. On Dec. 30, 2019, it made a prepayment of $25 million of term loans under the company’s senior secured term loan credit facility dated Nov. 30, 2017.
Then, in early January, it named Laura Salvidar as SVP/Integrated Marketing Solutions for its Los Angeles stations. These include KDLD-FM & KDLE-FM, which are now airing a cumbias-focused format as “Viva 103.1” following a failed attempt to resurrect Spanish Pop “Súper Estrella” on the frequencies serving L.A.’s coastal communities to the west of Interstate 405.
Entravision’s third quarter results were impacted by declines in our radio and digital segments compared to the prior year, Entravision Chairman/CEO Walter Ulloa said Nov. 8, 2019.
While Entravision’s TV stations saw gains from spectrum usage rights and retransmission consent revenue, and not from advertising revenue. This couldn’t help a company with challenges in its radio and digital divisions, respectively.