ENTRAVISION COMMUNICATIONS CORP Q1 FY2025 earnings call

• Media: Revenue declined 10% in 1Q 2025; Jan was lowest, Feb, Mar, Apr improved sequentially. Investing in media business by adding local sales teams, digital sales specialists, and operations. Operating expenses in media segment increased ~$1 million in 1Q 2025 vs 1Q 2024, ~$3 million annualized. - ATS: Revenue grew 57% in 1Q 2025. Investing in engineering, AI capabilities, and sales organization. Operating expenses in ATS segment increased 43% in 1Q 2025 vs 1Q 2024, but revenue growth outpaced expenses. Corporate expenses reduced by $4.5 million in 1Q 2025 vs 1Q 2024, nearly $18 million annualized.

For the Media segment, revenue declined 10% in 1Q 2025 compared to 1Q 2024, totaling $41 million. The operating loss for the media segment was $2.6 million in 1Q 2025, compared to an operating profit of $3 million in 1Q 2024. For the Advertising Technology and Services (ATS) segment, revenue was 57% higher in 1Q 2025 compared to 1Q 2024, reaching $50.9 million. The operating profit for the ATS segment was $6.5 million in 1Q 2025, significantly higher than the $1.6 million in 1Q 2024.

• Media: Focus on growing revenue by adding sales capacity and serving local advertisers' digital needs. - ATS: Expect revenue to grow faster than expenses, leading to operating leverage. - Dividends: Board approved $0.05 per share dividend for Q2, payable June 30, 2025.

• Noncash charges: $23.7 million write-down from selling two TV stations in Mexico and $25.2 million noncash charge from vacating headquarters. - Trade policy/tariffs: Media revenue US-based; advertisers include some impacted by tariffs but many local services businesses; ad tech/services clients are services businesses not directly impacted by tariffs, no changes to forecasts due to tariffs.

Q: How has Entravision Communications Corporation's business been impacted by recent changes in trade policy and tariffs?

A: Our business primarily consists of selling advertising services not directly subject to tariffs. Media revenue is generated within the US. While some advertisers may be impacted, many are local services businesses. Ad tech and services revenue is generated globally, with clients being services businesses not directly impacted by tariffs. At this time, no changes to forecasts or strategic plans in response to tariffs.