Until recently, Entravision Communications was largely viewed by the industry and by investors as a Hispanic-focused company with revenue equally derived from its digital, television and radio divisions.
That’s no longer the case. The company’s Q2 earnings results demonstrate that digital is, by a very wide margin, the revenue driver today.
Total net revenue soared by 295% in the quarter, to $178.41 million from $45.12 million.
However, that growth is thanks to its Digital division:
While TV revenue grew by 26% and radio was up by 108% year-over-year, digital’s dominance is even more pronounced than what is now seen at “Digital First” local media company Townsquare Media.
The digital gains helped Entravision see Q2 net income attributable to common stockholders of $7.86 million ($0.09), rising from $2.34 million ($0.03).
“Through the acquisition of MediaDonuts, along with our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, we have now added two digital powerhouses to our platform whose combined leadership, sales, operations and geographic reach further propel our core digital offerings and position us to partner with the world’s leading technology and social platforms,” Entravision CEO Walter Ulloa said.
With the strong results, Entravision’s Board of Directors on Thursday declared a quarterly cash dividend of $0.025 per share on its Class A, Class B and Class U common stock. It is payable Sept. 30 to shareholders of record on September 15.
In immediate after-hours trading, EVC was trading at $6.20, up 5 cents from Thursday’s closing value.
