Entravision Communications Corporation has announced financial results for the three- and nine-month periods ended September 30, 2024.
"During the third quarter we realigned our operating segments into two segments: Media and Advertising Technology & Services. Our media segment consists of sales of advertising through various media, including television, radio and digital. Our advertising technology & services segment consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business," said Michael Christenson, Chief Executive Officer.
Christenson continued, "Our net revenue from continuing operations increased 25% in the third quarter of 2024 compared to the same quarter in 2023, driven primarily by growth in political advertising revenue and Smadex. Our balance sheet remains strong, and we are focused on providing highly-rated news and content to our audiences, strengthening our digital marketing solutions in combination with our television and radio offerings, and continuing to grow Smadex."
(1) Consists of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2) Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $2.1 million and $2.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2024 and 2023, respectively, and $5.0 million and $6.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2024 and 2023, respectively.
(3) Corporate expenses include $1.6 million and $4.4 million of non-cash stock-based compensation for the three-month periods ended September 30, 2024 and 2023, respectively, and $8.0 million and $9.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2024 and 2023, respectively.
(5) Effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses.
Net revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in advertising revenue from our media segment, and an increase in advertising revenue from our advertising technology & services segment. The increase was partially offset by decreases in spectrum usage rights revenue and retransmission consent revenue in our media segment.
Cost of revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to the increase in digital advertising revenue.
Operating expenses for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in salaries, primarily associated with the expansion of our news programming in our media segment, and increases in salaries and cloud infrastructure expenses associated with the increase in revenue in our advertising technology & services segment. Additionally, effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses.
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