Thursday, September 02, 2021
Entravision Communications (EVC)
Financial Flexibility With Recent Buyout
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Accelerates timetable to buy the rest of Cisneros. The Company acquired the remaining 49% interest in Cisneros Interactive that it did not already own, accelerating the timetable to buy the stake by 2 years. Notably, we estimate that the company paid $29 million for its original 51% ownership interest in Oct. 2020. The purchase solidifies the company as a leading digital media company, with over 70% of its consolidated revenue from its Digital Media businesses.
Attractive terms. Entravision will pay the remaining shareholders of Cisneros in 1/3rd increments in each of the next 3 years. The annual payout will be 6 times EBITDA of the prior year end period times 49% divided by 3, an attractive valuation given the strong growth profile of Cisneros. The sellers will receive incremental upside from acquisitions that Cisneros makes. The buyout takes the place …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
