Q1 2025 Entravision Communications Corp Earnings Call
Operator: Greetings and welcome to the Entravision First Quarter 2025 Earnings Conference Call. As a reminder, this conference is being recorded.
Greetings and welcome to the Entravision first quarter 2025 earnings Conference call. As a reminder, this conference is being recorded it is now my pleasure to introduce your host drawing ear. Please go ahead.
Roy Nir: It is now my pleasure to introduce your host, Roy Nir. Please go ahead.
Roy Nir: Good afternoon, everyone, and welcome to Entravision's first quarter 2025 earnings call. I am Roy Nir, Vice President of Financial Reporting and Investor Relations.
Speaker Change: Good afternoon, everyone and welcome to Entravision first quarter 2025 earnings call.
Lori <unk>: Lori <unk>, Vice president of financial reporting and Investor Relations.
Roy Nir: Joining me today are Michael Christenson, our Chief Executive Officer, and Mark Boelke, our Chief Financial Officer. Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision's SEC filings for a list of risks and uncertainties that could impact actual results.
Speaker Change: Joining me today are Michael Christian thing, our Chief Executive Officer, and Mike Bell, Our Chief Financial Officer.
Speaker Change: Before we begin I would like to inform you that this call will contain forward looking statements that are subject to risks and uncertainties that could cause actual results to differ.
Speaker Change: Please refer to Entravision <unk> SEC filings for a list of risks and uncertainties that could impact actual results.
Roy Nir: The press release is available on the company's investor relations page and was filed with the SEC on Form 8A.
Speaker Change: The press release is available on the company's Investor Relations page and was filed with the SEC form 8-K, I will now turn the call over to Michael Christiansen.
Michael Christenson: I will now turn the call over to Michael Christenson. Thanks, Roy. And thank you to all of you for joining our call today. As Roy said, we're here to discuss our results. for the first quarter of 2025. And we'll be taking questions at the end of our remarks. As you saw in our press release, on a consolidated basis, we increased our revenue 17% to $91.9 million in 1Q25 compared to 1Q24. excluding certain non-cash accounting charges that Mark will discuss. We had an operating loss of $3.9 million in 1Q25.
Roy: Thanks Roy.
Speaker Change: Thank you to all of you for joining our call today as Roy said, we're here to discuss our results for the first quarter of 2025.
Speaker Change: And we'll be taking questions at the end of our remarks.
Speaker Change: As you saw in our press release on it.
Speaker Change: Consolidated basis, we increased our revenue.
Speaker Change: 17%.
Speaker Change: To 91 9 million in more than 225 compared to <unk> 24.
Mark: Excluding certain non cash accounting charges that mark will discuss.
Mark: We had an operating loss of $3 9 million in <unk> 25.
Michael Christenson: Our objective is to grow our business and earn a profit, so we acknowledge we have work to do to improve our operating performance.
Mark: Our objective is to grow our business and earn a profit. So we acknowledge we have work to do to improve our operating performance.
Michael Christenson: As you all know, we report our results for two segments. Media, and Advertising Technology and Services, what we call ATS. For our media segment, our revenue declined 10% in 1Q25 compared to 1Q24. Some of our local advertisers reduced their ad spend in 1Q25 compared to 4Q24 and 1Q24. we had fewer active local advertisers in one queue. The average spend per active local advertiser increased slightly, but this was not enough to offset the decrease in the number of active local advertisers. Our smaller advertisers pulled back more than our larger advertisers in one queue. We saw similar results in our national business.
Mark: As you all know we report our results for two segments media.
we call ATS.
Mark: For our media segment, our revenue declined 10% in 1Q25 compared to 1Q24.
Mark: Some of our local advertisers reduced their ad spend in 1Q25 compared to 4Q, 24 and 1Q, 24.
Mark: We had fewer active local advertisers in one queue. The average spend per active local advertiser increased slightly, but this was not enough to offset the decrease in the number of active local advertisers.
Mark: Our smaller advertisers pulled back more than our larger advertisers in 1Q. We saw similar results in our national business.
Mark: What I can share with you on this call is that our revenue was lowest in January , February was better than January , March was better than February , and April was better than March.
Michael Christenson: What I can share with you on this call is that our revenue was lowest in January. February was better than January. March was better than February. And April was better than March.
Mark: In terms of operating expenses and profitability, we're making a number of important investments in our media business in 2025.
Michael Christenson: In terms of operating expenses and profitability, we're making a number of important investments in our media business in 2025. We're adding capacity to our local sales teams, more sellers, and we're adding digital sales specialists and digital sales operations capabilities so we can do more digital. When we analyze our local markets and our local advertiser base, we see an opportunity to increase revenue by adding sales capacity. In addition, virtually all our local advertising customers are also advertising in digital channels. search, social, streaming video, and streaming audio. And we believe we can serve their needs in these digital channels, as well as our traditional broadcast video and audio channels.
Mark: We're adding capacity to our local sales teams, more sellers, and we're adding digital sales specialists and digital sales operations capabilities so we can do more digital.
Mark: When we analyze our local markets and our local advertiser base, we see an opportunity to increase revenue by adding sales capacity.
Mark: In addition, virtually all our local advertising customers are also advertising in digital channels.
Mark: Search, Social, Streaming Video and Streaming Audio. And we believe we can serve their needs in these digital channels as well as our traditional broadcast video and audio channels.
Mark: to increase the increase in operating expenses in our media segment.
Michael Christenson: to increase the increase in operating expenses in our media segment. these investments was a little less than a million dollars in 1Q25 compared to 1Q24. So about three million dollars on an annualized basis. The combination of lower revenue and increased operating expenses produced an operating loss for our media segment of $2.6 million for 1Q25, compared to an operating profit of $3 million in 1Q24.
Mark: These investments was a little less than a million dollars in 1Q25 compared to 1Q24. So, about $3 million on an annualized basis.
Mark: The combination of lower revenue and increased operating expenses produced an operating loss for our media segment of $2.6 million for 1Q25.
compared to an operating profit of $3 million in Q24.
Now for our advertising technology and services segment.
Michael Christenson: Now for our Advertising Technology and Services site. ATS revenue was 57% higher in 1Q25 compared to 1Q24. We had more customers and we had higher spend per customer.
Mark: ATS Revenue was 57% higher in 1Q25 compared to 1Q24. We had more customers and we had higher spend per customer.
Mark: We continue to invest in our ATS segment in 1Q25 to grow revenue and operating profits.
Michael Christenson: We continue to invest in our ATS segment in 1Q25 to grow revenue and operating profits. We're investing in our engineering team to continue to improve our technology, to build more powerful AI capabilities into our platform. And we're investing to increase the capacity of our sales organization for ATS. In addition, our infrastructure costs will grow as our revenue grows, not at the same pace, but they will grow. The combination of these investments, investments in increased operating expenses, resulted in operating expenses that were $4.1 million higher in 1Q25 compared to 1Q24. That's $16 million higher on an annualized basis.
Mark: We're investing in our engineering team to continue to improve our technology, to build more powerful AI capabilities into our platform, and we're investing to increase the sales capacity of our sales organization for ATS.
Mark: In addition, our infrastructure costs will grow as our revenue grows, not at the same pace, but they will grow.
The combination of these investments, investments in increased operating expenses.
Mark: resulted in operating expenses that were $4.1 million higher in $1.25 compared to $1.24. That's $16 million higher on an annualized basis.
Mark: ATS Revenue grew faster than operating expenses, so our operating profit was $6.5 million in $1,225 significantly higher than $1,224.
Michael Christenson: ATS revenue grew faster than operating expenses, so our operating profit was $6.5 million in 1Q25, significantly higher than 1Q24.
Mark: We have funded these operating expense investments for both media and ATS in part by reducing our corporate expenses.
Michael Christenson: We have funded these operating expense investments for both media and ATS in part by reducing our corporate expenses. We reduced our corporate expenses by $4.5 million in 1Q25 compared to 1Q24, nearly $18 million on an annualized basis.
Mark: We reduced our corporate expenses by $4.5 million in 1Q25 compared to 1Q24, nearly $18 million on an annualized basis.
Michael Christenson: So to summarize, in media, we're investing to increase our local sales capacity and we're investing to expand our digital sales and digital sales operations capabilities. More sellers, more digital. In ATS, We're investing to add more engineers, to advance our technology, and to increase our sales capacity. So more technology, better technology, and more sellers.
Mark: So to summarize, in media we're investing to increase our local sales capacity and we're investing to expand our digital sales and digital sales operations capabilities.
Moore Sellers, Moore Digital. In ATS,
Mark: We're investing to add more engineers to advance our technology and to increase our sales capacity. So more technology, better technology and more sellers. We believe these investments will help us build a stronger company.
Michael Christenson: We believe these investments will help us build a stronger company.
Mark: Now last, Mark, to share with you more details of our financial results for 1st quarter 2025, Mark.
Mark Boelke: Now I'll ask Mark to share with you more details of our financial results for first quarter 2025. Thank you, Mike. Entravision's business is to produce and distribute content and to sell advertising on video, audio, and digital media platforms. Our goals are to invest in our media business content, particularly local news production. invest in the technology driving our ad tech and services business. and increase our sales capacity in both our media and ad tech business.
Thank you, Mike.
Mark: Entravision's business is to produce and distribute content and to sell advertising on video, audio and digital media platforms.
Mark: Our goals are to invest in our media business content, particularly local news production. Invest in the technology driving our ad tech and services business. And increase our sales capacity in both our media and ad tech businesses.
Mark: I'd like to start with a couple of comments about the presentation of our financial reporting.
Mark Boelke: I'd like to start with a couple of comments about the presentation of our financial reporting. Over the past year, we have been undertaking initiatives to reorganize our business units and their management, sales, and operations and support teams. in order to drive revenue. to support our business units effectively and efficiently and reduce expense.
Mark: Over the past year, we have been undertaking initiatives to reorganize our business units and their management, sales, and operations and support teams. In order to drive revenue, support our business units effectively and efficiently and reduce expense.
Mark: As a result of these initiatives, our financial reporting is organized into two operating segments, as Mike mentioned.
Mark Boelke: As a result of these initiatives, our financial reporting is organized into two operating segments, as Mike mentioned. The first operating segment is media, which is our business providing video, audio, and digital marketing services and advertising to local and national advertisers in the United States. The second operating segment is Advertising Technology and Services. This business provides programmatic advertising, technology and services to advertisers and mobile app developers on a global basis.
Mike: The first operating segment is Media, which is our business providing video, audio and digital marketing services and advertising to local and national advertisers in the United States.
The second operating segment is advertising technology and services.
Mike: This business provides programmatic advertising, technology and services to advertisers and mobile app developers on a global basis.
Mike: One additional comment is that during 2nd quarter, 2024, we completed the sale of our former Global Sales Representation Business, and as a result, financial results for this former business are reported in our financial statements as discontinued operations for the first quarter and prior periods.
Mark Boelke: One additional comment is that during second quarter, 2024, we completed the sale of our former global sales representation business. And as a result, financial results for this former business are reported in our financial statement as discontinued operations for the first quarter and prior.
Mark Boelke: Let's start by reviewing revenue performance. On a consolidated basis, revenue for first quarter was $91.9 million, up 17% compared to first quarter 2024. The increase was driven primarily by growth in our ad tech and services segment, which grew revenue to $50.9 million in the first quarter, achieving revenue growth of 57% compared to first quarter 2020. Again, our Ad Second Services business achieved 57% revenue growth in the first quarter. Over the past year, we have been executing on our goals of improving the technology of our ad tech platform and building AI capabilities into it, as well as increasing the number of customers and our revenue per customer.
Mike: <unk> services segment, which grew revenue to $50 $9 million in the first quarter, achieving revenue growth of 57% compared to first quarter of 2024 again, our AD second services business achieved 57% revenue growth in the first quarter.
Mike: Over the past year, we have been executing on our goals of improving the technology of our AD Tech platform and building AI capabilities into it as well as increasing the number of customers and our revenue per customer. We're excited about this business and its continued growth opportunities.
Mark Boelke: We're excited about this business and its continued growth opportunity. In our media segment, first quarter revenue was $41 million, which was down 10% compared to first quarter 2020. The decrease was driven in part by political advertising that was present in 2024, but not in 2025. as well as a decrease in retransmission consent revenue. We had a slow start to the year due to uncertainty by advertisers as the year began, and as we ramped up the hiring of additional sales personnel and other initiatives focused on growing sales.
Mike: In our media segment first quarter revenue was $41 million, which was down 10% compared to first quarter 2024.
Mike: This decrease was driven in part by political advertising that was present in 2024, but not in 2025.
Mike: As well as a decrease in retransmission consent revenue.
Mike: And a slow start to the year due to uncertainty by advertisers as the year began and as we ramped up the hiring of additional sales personnel and other initiatives focused on growing revenue.
Mark Boelke: Earlier on this call, Mike reviewed our strategies to generate revenue growth in our media business, including hiring additional sales and digital marketing personnel. selling more advertising in our news content. growing local media sales and significantly growing local digital sales. continue to execute on those revenue growth strategies. We are seeing progress and momentum as we move through the year.
Mike: Earlier on this call Mike reviewed our strategies to generate revenue growth in our media business, including hiring additional sales and digital marketing personnel.
Mike: Selling more advertising in our news content growing local media sales and significantly growing local digital sales.
Mike: We continue to execute on those revenue growth strategies, and we are seeing progress and momentum as we move through the year.
Mark Boelke: As I mentioned, we have a strategic and operational focus on content, technology, and sales. An additional goal is to optimize our organizational structure and the expense. service. to align them with our revenue performance and to be profitable in each of our operating segments and on a consolidated basis.
Mike: As I mentioned, we have a strategic and operational focus on content technology and sales and additional goal is to optimize our organizational structure and the expense of support services to align them with our revenue performance and to be profitable in each of our operating segments and on a consolidated basis.
Mark Boelke: I'd like to review total operating expenses for each of our segments. This refers to the sum of our direct operating expenses. Selling General and Administrative Expenses, or SG&A, as those two line items are reported in our segment results. Total operating expenses for our media segment in first quarter 2025 increased 2% compared to first quarter 2024, or about $800,000. As I mentioned earlier, we reorganized our business units in 3rd quarter 2024, and at that time, we reallocated $4 million of expense on an annualized budget. corporate expense to media operating is the expense of personnel and other resources that, following the reorganization, were focused entirely on the media business.
Mike: I'd like to review total operating expenses for each of our segments.
Mike: This refers to the sum of our direct operating expenses.
Mike: Selling general and administrative expenses or SG&A as those two line items are reported in our segment results.
Mike: Total operating expenses for our media segment in first quarter 2025 increased 2% compared to first quarter 2024 are about $800000.
Mike: As I mentioned earlier, we reorganized our business units in the third quarter 2024, and at that time, we reallocated $4 million of expense on an annualized basis from corporate expense to media operating expense.
Mike: This is the expenses personnel and other resources that following the reorganization we're focused entirely on the media business the.
Mark Boelke: The increase in media operating expense in first quarter 2025 due to this reorganization was $800,000. We continue to evaluate the organizational structure of our media business. to be able to provide compelling content, drive sales. to further minimize the expense of support services.
Mike: The increase in media operating expense in first quarter 2025, due to this reorganization was $800000.
Mike: <unk> in the 2% increase.
Mike: We continue to evaluate the organizational structure of our media business to be able to provide compelling content.
Mike: <unk> sales and further minimize the expense of support services.
Mark Boelke: Total operating expenses for our ad tech and services segment increased by 43% in the first quarter of 2025 compared to 2024. Again, this is Direct Operating Expenses and SG&A. This increase was driven primarily by the timing of accruals for annual sales performance compensation and bonus. The ad tech and services business overachieved revenue growth in 2024, resulting in increased performance compensation to our team in 2020. And a significant amount of that was expensed in the fourth quarter. We anticipate strong performance of this business again this year. And in first quarter 2025, we accrued additional performance comp expense that was not accrued in the first quarter of last year.
Mike: Total operating expenses for our AD second services segment increased by 43% in the first quarter of 2025 compared to 2024. Okay. This is direct operating expenses and SG&A expenses as reported in our segment.
Mike: Information.
Mike: This increase was driven primarily by the timing of accruals for annual sales performance compensation and bonuses.
Mike: The second services business over achieved revenue growth in 2024, resulting in increased performance compensation to our team in 2024.
Mike: And a significant amount of that was expense in fourth quarter 2024.
Mike: We anticipate strong performance of this business again this year and in first quarter 2025, we accrued additional performance comp expense that was not accrued in the first quarter of last year.
Mark Boelke: The timing of how we incurred and accrued performance comp expense over the past year led to some unevenness in expense amounts as reported quarter to quarter. For example, total operating expense increased 43% from first quarter 2024 to first quarter 2025.
Mike: The timing of how we incurred and accrued performance comp expense over the past year led to some unevenness and expense amounts as reported quarter to quarter. For example, total operating expense increased 43% for first quarter 2024 to first quarter 2025.
Mark Boelke: For more information visit www.fema.gov but it only increased 2% from fourth quarter 2024 to first quarter. We expect these expenses to even out on an annualized basis with revenue increasing faster than expense to generate meaningful operating leverage in our ad tech and services. Again, our goal is to grow revenue and be profitable for each of our segments and on a consolidated basis. And we are very pleased with the achievement of these goals in our ad tech and services segment. Revenue increased 57%. Expenses increased less than that. And we achieved significant operating leverage and grew ad tech and services segment operating profit to $6.5 million.
Mike: But it only increased 2% from fourth quarter 2020 for the first quarter of 2025.
Mike: We expect these expenses to even out on an annualized basis with revenue increasing faster than expenses to generate meaningful operating leverage and our AD Tech and services business.
Mike: Again, our goal is to grow revenue and be profitable for each of our segments and on a consolidated basis and we're very pleased with the achievement of these goals and our AD Tech and services segment.
Mike: Revenue increased 57% expenses increased less than that and we achieved significant operating leverage and grew AD Tech and services segment operating profit to $6 5 million. This was about four times the amount of segment operating profit compared to first quarter of the private prior year.
Mark Boelke: This is about four times the amount of segment operating profit compared to first quarter of the prior year. Our ad tech and services business is achieving our goals of improving technology, increasing sales capacity, generating significant revenue growth, and generating meaningful opportunity.
Mike: Our AD Tech and services business is achieving our goals of improving technology, increasing sales capacity generating significant revenue growth and generating meaningful operating leverage.
Mark Boelke: Mike said earlier, we recognize that we have additional work to do to achieve our goals in our media segment and on a consolidated basis. The combination of media segment revenue decreasing by 10% and total operating expense increasing by 2% led to a media segment operating loss of $2.6 million. continue to focus on executing on our grow revenue and reduce expense in the media. combining both of our media and ad tech segments. Our combined operations generated a consolidated segment operating profit of $3.9 million. This was a 16% decrease compared to first quarter.
Mike: As Mike said earlier, we recognized that we have additional work to do to achieve our goals in our media segment and on a consolidated basis.
Mike: A combination of media segment revenue decreasing by 10% in total operating expense increasing by 2% led to our media segment operating loss of $2 6 million.
Mike: We continue to focus on executing on our initiatives to grow revenue reduce expense and the media segment.
Mike: Combining both of our media and AD Tech segments are.
Mike: Our combined operations generated a consolidated segment operating profit of $3 9 million.
Mike: Although this was a 16% decrease compared to first quarter 2024.
Mark Boelke: We've also taken steps to reduce corporate expense, consistent with our philosophy of reducing the expense of support. Corporate expense for first quarter was $7.8 million. was a decrease of 36% compared to first quarter 24. were about $4.5 million in reduced corporate expense in first quarter 2025 compared to 2014. Of this, $4.5 million is reduced corporate expense. approximately $3.8 million with a decrease. most of it was due to a reduction in personnel, a reduction in compensation expense paid to our executive team, including salary, bonus, and non-cash stock-based comp. and Decreased Overall Professional Services Expenses. approximately 800,000 of a decrease in first quarter.
Mike: We've also taken steps to reduce corporate expense consistent with our philosophy of reducing expenses support services.
Mike: Corporate expense for first quarter was seven $8 million.
Mike: This was a decrease of 36% compared to the first quarter 'twenty four.
Mike: About $4 5 million and reduced corporate expense in first quarter 2025 compared to 24.
Mike: Of this $4 $5 million of reduced corporate expense.
Mike: Approximately $3 $8 million of the decrease most of it was due to a reduction in personnel a reduction in compensation expense paid to our executive team, including salary bonus and noncash stock based comp and decreased overall professional services expenses.
Mike: Approximately 800000 of the decrease in first quarter.
Mark Boelke: corporate expense was reallocated to media operating expense due to the reassignment of certain personnel and resources that I described earlier as we reorganize our operations.
Mike: Corporate expense was reallocated to media operating expense due to the reassignment of certain personnel and resources that I described earlier as we reorganize our operating segments.
Mark Boelke: In the first quarter, we encourage certain professional services expenses that we do not expect to incur on a recurring basis. And as a result, we expect the corporate expense quarterly run rate for the remainder of 2025 to be lower than the amount of first quarter.
Mike: In the first quarter, we incurred certain professional services expenses that we do not expect to occur on a recurring basis and as a result, we expect the corporate expense quarterly run rate for the remainder of 2025 to be lower than the amount of first quarter expense corporate expense.
Mark Boelke: Turning to our income statement, in the first quarter, we incurred non-cash charges of $48.9 million due to two events. For one, we are in the process of selling two television stations in Mexico, which we determined were not strategic to our business and operation. This resulted in a non-cash write-down of the value of these TV assets held on our balance sheet of $23.7 million. The licenses and fixed assets of these stations are now classified as assets held for sale under balance.
Mike: Turning to our income statement in the first quarter, we incurred noncash charges of $48 $9 million due to two events.
Mike: For one we are in the process of selling two TV stations in Mexico, which we determined were not strategic to our business and operations with.
Mike: This resulted in a noncash write down of the value of these TV assets held on our balance sheet of $23 7 million.
Mike: The licenses in fixed assets of these stations are now classified as assets held for sale on our balance sheet.
Mark Boelke: We also vacated our previous headquarters office in Santa Monica, California. This resulted in a non-cash charge of $25.2 million. which reflects accelerated amortization. for the related right-of-use asset and fixed assets on our balance. primarily due to these non-cash charges. Net loss attributable to common stockholders was $48 million in the first quarter of 2020. excluding these non-cash charges we would have incurred an operating loss of $3.9 million in the first and we are focused on growing media revenue. on reducing media operating expense and reducing corporate expense throughout the remainder of 2025.
Mike: We also vacated our previous headquarters office in Santa Monica, California.
Mike: This resulted in a noncash charge of $25 2 million, which reflects accelerated amortization of the related right of use asset and fixed assets on our balance sheet.
Mike: Primarily due to these noncash charges net loss attributable to common stockholders was $48 million in the first quarter of 2025.
Mike: Excluding these noncash charges, we would have incurred an operating loss of $3 9 million in the first quarter.
Mike: Again, we are focused on growing media revenue.
Mike: Reducing the operating expenses and reducing corporate expense throughout the remainder of 2025 and beyond.
Mark Boelke: Entravision's balance sheet remains strong, with a total of $78 million in cash and marketable securities as of the end of first quarter. indebtedness under our credit facility was $187.8 million.
Mike: And to revisions balance sheet remains strong with a total of $78 million in cash and marketable securities as of the end of first quarter.
Mike: Indebtedness under our credit facility was $187 8 million.
Mark Boelke: Our strategy regarding capital allocation is the following. First, reduce debt and maintain low leverage. Second, return capital to our shareholders, primarily through dividends. Consistent with that strategy, over the past year, we prepaid $20 million of our outstanding indebtedness, and we continue to maintain the leverage. In addition, we paid $4.5 million in dividends to stockholders in the first quarter, or $0.05 per share.
Mike: Our strategy regarding capital allocation is the following.
Mike: First reduce debt and maintain a low leverage.
Mike: Second returning capital to our shareholders primarily through dividends.
Mike: Consistent with that strategy over the past year, we prepaid $20 million of our outstanding indebtedness and we continue to maintain low leverage in.
Mike: In addition, we paid $4 5 million in dividends to stockholders in the first quarter.
Mike: <unk> per share.
Mark Boelke: For the second quarter, our Board of Directors has approved a five-cent dividend per share, which will be payable on June 30th to stockholders of record as of June 16th, 2020. for a total dividend payment of approximately four and a half.
Mike: For the second quarter, our board of Directors has approved a five cent dividend per share, which will be payable on June 30 to stockholders of record as of June 16th 2025 for a total dividend payment of approximately $4 5 million.
Mark Boelke: We'd like to thank you for joining our call today. We welcome our investors to connect with us through the Investor Relations page on our corporate website, Entravision.com. where you will have access to a transcript of this call, the press release containing our financial results, and a copy of our Form 10-Q quarterly report filed with the SBA.
Mike: We'd like to thank you for joining our call today, we welcome our investors to connect with us through the Investor Relations page on our corporate website Entravision Dot com.
Mike: You will have access to a transcript of this call the press release containing our financial results and a copy of our Form 10-Q quarterly report filed with the SEC.
Michael Christenson: At this time, Mike and I would like to open the call for questions from the investment So operator, I will turn it back. Thank you so much for that.
Speaker Change: At this time, Mike and I would like to open the call for questions from the investment community.
Mike: So operator, I will turn it back to you now.
Speaker Change: Thank you so much for that and ladies and gentlemen, we will now begin the question and answer session.
Operator: And ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star button followed by the number 1 on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel your request, please press the star button followed by the number 2. And if you are using a speakerphone, please lift the handset before pressing any key.
Speaker Change: Do you have a question. Please press the start button followed by the number one on your telephone keypad you will hear a problem that you had has been raised.
Speaker Change: Should you wish to cancel your request. Please press the start button followed by the number.
Speaker Change: And if you are using a speaker phone VP of the handset before rising any key.
Operator: One moment, please, for our first question. operator. Hello.
Speaker Change: One moment. Please for your first question.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Question.
Speaker Change: Operator.
Speaker Change: Hello, again should you wish to ask a question. Please press the start button followed by the number one on your telephone keypad.
Operator: Again, should you wish to ask a question, please press the start button followed by the number one on your telephone keypad.
Mark Boelke: Operator, while we wait for any questions to come through, I'd like to review a written question that we received. The question is, how has Entravision's business been impacted by recent changes in trade policy and tariffs? is a common question being asked of companies. Our business primarily consists of selling advertising services which are not directly subject to tariff. media revenue is generated within the United States. And although our advertisers do include some manufacturers that could be impacted by tariffs such as auto dealers or manufacturers. Many advertisers are local services businesses that are not directly impacted by tariff.
Speaker Change: Operator, while we wait for any questions that come through I would like to review a written question that we received.
Speaker Change: The question is how has the entravision business been impacted by recent changes in trade policy and tariffs.
Speaker Change: That's a common question being asked by of companies. These days.
Speaker Change: Yeah.
Speaker Change: Our business primarily consists of selling advertising services, which are not directly subject to tariffs.
Speaker Change: Media revenue is generated within the United States.
Speaker Change: And although our advertisers do include some manufacturers that could be impacted by tariffs such as auto auto dealers or manufacturers.
Speaker Change: Many advertisers or local services businesses that are not directly impacted by tariffs.
Mark Boelke: That's largely for our media. Our ad tech and services revenue is generated primarily in Europe and the Middle East. followed as well by Asia and the United States. And our clients in the ad tech and services business are primarily services. largely mobile app. providers for companies in gaming. entertainment, social media, financial services, etc. And those businesses are not directly impacted by tariffs as a general matter.
Speaker Change: That's largely for our media business.
Speaker Change: Our AD Tech and services revenue is generated primarily in Europe, and the middle East followed as well by Asia and the United States.
Speaker Change: And our clients in the AD Tech and services business are primarily services businesses largely mobile app providers.
Speaker Change: Providers.
Speaker Change: For a company that gaming entertainment, social media financial services et cetera, and those businesses are not directly impacted by tariffs as a general matter.
Mark Boelke: At this time, we have not changed any forecasts or strategic plans in response to changes in tariff or trade policy. Operator, I'll turn it back to you if there's any additional questions.
Speaker Change: At this time, we have not changed any forecast our strategic plans in response to changes in tariff or trade policies.
Speaker Change: Operator, I'll turn it back to you if there's any additional questions.
Mark Boelke: Thank you so much for that, Mark.
Speaker Change: Thank you so much for that.
Michael Christenson: And since there are no further questions at this time, I'll be transferring the call over to Michael Christenson for our closing remarks. Thank you all for joining us today. We look forward to hearing from you again on our next quarterly results call. And in the meantime, as Mark mentioned, if there are any things that you'd like to discuss or questions that you have, you can connect with us through our Investor Relations website, and we're happy to get back to you. Thank you.
Speaker Change: And since there are no further question at this time.
Speaker Change: The transferring the call over to Michael for instances for our closing remarks.
Michael Christiansen: Thank you all for joining us today.
Michael Christiansen: We look forward to seeing or hearing from you again on our next quarterly results call and in the meantime, as Mark mentioned, if there are any things that you'd like to discuss your questions that you have you can connect with us through our Investor Relations website, we happy to be happy to get back to you. Thank you.
Operator: This concludes today's call. Thank you for participating. You may now disconnect. Thank you so much, everyone.
Michael Christiansen: This concludes today's call. Thank you for participating you may now disconnect. Thank you so much everyone.
Michael Christiansen: Okay.
Michael Christiansen: Yeah.
Michael Christiansen: Okay.
Michael Christiansen: Yes.