Entravision Communications Corporation Q2 FY2025 earnings call

• In the Media segment, they're investing to increase local sales capacity and expand digital sales and operations capabilities, with operating expenses in Media increasing by a little less than $2 million in 2Q '25 compared to 2Q '24. - In the ATS segment, they're investing in engineering to improve technology and add AI capabilities, and increasing sales capacity, with operating expenses for ATS up $6 million in 2Q '25 compared to 2Q '24. - They reduced corporate expenses by $4 million in 2Q '25 compared to 2Q '24, nearly $18 million on an annualized basis. - They reorganized the Media business units, reducing one layer of local sales management to drive sales activity and expect approximately $1 million in annual savings starting mainly in Q3 '25.

On a consolidated basis, Entravision's revenue in 2Q '25 was $101 million, a 22% increase compared to 2Q '24. The Media segment had revenue of $45.4 million in 2Q '25, a 8% decline from 2Q '24. It had fewer active local advertisers, but the average spend per local advertiser was slightly up. The operating profit of the Media segment was $354,000 in 2Q '25, down from $6 million in 2Q '24. The Advertising Technology and Services (ATS) segment had revenue of $55.3 million in 2Q '25, a 66% increase compared to 2Q '24. Operating profit in ATS was $5 million in 2Q '25, almost 3 times higher than in 2Q '24. ATS saw investments in engineering to enhance technology and AI capabilities, and in sales capacity, with operating expenses for ATS up $6 million in 2Q '25 compared to 2Q '24.

• They believe the investments in Media and ATS will help build a stronger company. - Expect operating leverage in the ATS segment as the business grows. - Aim to be profitable in each operating segment and on a consolidated basis.

• Economic uncertainty impacted the Media segment with advertisers pulling back. - Federal immigration enforcement actions affected the Media segment's local advertisers. - Cloud computing costs in the ATS segment are currently growing slightly faster than revenue.

Q: None A: None