Entravision Communications’ Q4 net revenue decreased to $52.8 million from $62.5 million Q4 ‘07, a decrease of $9.7 million or 16%. Of the overall decrease, $6.0 million came from their television segment and was primarily attributable to a decrease in local and national ad sales and ad rates.
$3.7 million of the decrease came from the radio side and was primarily attributable to a decrease in local ad sales and rates, partially offset by revenue associated with the expansion of the radio division in Orlando.
Operating expenses decreased to $35.2 million in the quarter, from $36.1 million in Q4 ‘07, a decrease of $0.9 million. The decrease was primarily attributable to a decrease in expenses associated with the decrease in net revenue.
The Company recorded an impairment charge of $170 million, primarily related to television and radio FCC broadcasting licenses and goodwill as a result of an appraisal recently conducted on certain television and radio assets for the quarter.
Said Entravision CEO Walter Ulloa: "Our fourth quarter results reflect the continuing impact of the global financial crisis and the recession, resulting in an advertising downturn. We are continuing to focus on debt reduction and are committed to further reducing our costs and operating as efficiently as possible in order to maximize our cash flows, without sacrificing the quality of our content or marketing efforts. Our audience shares remain strong in the nation’s most densely populated Hispanic markets."
The company also announced that it repurchased 3.3 million shares of Class A common stock for approximately $4.2 million in Q4. The Company repurchased 12.1 million shares of Class A common stock for approximately $50.4 million in 2008. The company’s board approved the retirement of all treasury stock repurchased as of 12/31/08, and a total of 14.1 million treasury shares were retired on 12/31/08.
For the year, net revenue decreased to $232.3 million from $250.0 million, a decrease of $17.7 million. Of the overall decrease, $10.4 million came from the television side and the blame was weak ad sales. Additionally, $7.3 million of the decrease came from the radio side, with the same blame given.
