Friday, May 07, 2021
Entravision Communications Corporation (EVC)
Hits A Digital Home Run
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.
Q1 exceeds expectations. Q1 revenues increase 131% to $148.8 million, beating our estimate by nearly 20%. The extraordinary growth was primarily driven by the October 2020 acquisition of Cisneros Interactive, which increased revenues a remarkable 43% on a proforma basis, as if the company owned the operations a year earlier. Notably, the company’s Digital business represented 68% of total company revenues in the quarter, leading its diversified broadcast peers.
Core advertising improves. The strong Digital performance overshadowed the company’s underlying strength in its broadcast core advertising. Q1 core Television increased 3% and Audio (Radio) core increased 6%. Management indicated that Q2 core Television advertising is pacing up a strong 44%, 55% excluding Political. Radio is up 84%. Digital revenues are pacing up 900% …
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.
