Entravision Communications Corporation · NYSE:EVC
Entravision Communications — Gabelli 14th Annual Entertainment & Broadcasting Symposium (June 2022)
35 slides from Entravision Communications's conference presentation, Jun 2, 2022
Slide 1: Gabelli 14th Annual Entertainment & Broadcasting Symposium
Gabelli 14th Annual Entertainment & Broadcasting Symposium Chris Young | Chief Financial Officer June 2, 2022
Slide 2: About this presentation
About this presentation Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures. The company has previously provided a reconciliation between these non-GAAP financial measures and the most directly comparable GAAP measure. That reconciliation was included in
Slide 3: About Entravision
About Entravision Entravision’s Growing Global Footprint We are a leading global advertising, media and ad-tech solutions company connecting brands to consumers through partnerships with top platforms and publishers Founded 1996, IPO 2000 NYSE: EVC 1,185 employees 35 countries 3
Slide 4: Transformation of Entravision
Transformation of Entravision With roots in traditional broadcasting, Entravision has transformed into a global digital player. Pakistani Digital Ad- Digital Advertising Company in South Africa Rep Investment Acquisition Leading Ad-Rep and Digital Company in Southeast Asia Acquisition 100 TV & Radio
Slide 5: Investment Highlights
Investment Highlights Solid Financial Significant & Growing Long-Term Position Target Market Television Contracts ❏ Strong Free Cash-Flow conversion ❏ U.S. Latino + Latam growing market (79% of EBITDA for 2021) $5.6T by 2024 ❏ Entravision is Univision’s largest TV ❏ Ample liquidity > $211.6M in cash
Slide 6: Experienced Management Team
Experienced Management Team Walter Ulloa Karl Alonso Meyer Chairman & CEO Chief Revenue Officer Entravision founder. 40+ years of Deep broadcasting knowledge. 30+ years of experience in the media industry. experience in the media industry. 24 years at Entravision 16 years at Entravision Jeffrey Libe
Slide 7: Entravision Operating Segments
Entravision Operating Segments
Slide 8: Entravision's Three Business Segments
Entravision’s Three Business Segments Digital Television Audio 35 Countries 49 TV Stations in the U.S. 46 Radio Stations in the U.S. Global programmatic, Big-Tech Owned Newscasts in 21 markets and the largest digital audio network in representations, performance, local SMB with specialized sales org
Slide 9: Digital Segment
Ze entravision Digital Segment
Slide 10: Entravision Interactive Business Segments Focus
Entravision Interactive Business Segments Focus Digital Service Offering Partnerships & Business Units Global - Strong reach in 29 countries Commercial - Greatest multi-target partnerships Digital - Specialized solutions & collections Partnerships - Dedicated teams for each partner Programmatic - De
Slide 11: Entravision Digital Revenue Transformation
Entravision Digital Revenue Transformation Re-engineering our DNA... $555.3 Entravision Digital Revenue 2012-2021 (USD Millions) $143.3 $81.0 $4.1 $12.7 $23.1 2012 2014 2016 2018 2020 2021 Revenue Share 2% 5% 9% 27% 42% 73% Countries 1 2 2 14 21 30 Capabilities - CPM - CPM - CPM / CPA / - CPM / CPA
Slide 12: Global Digital Commercial Partnerships
Global Digital Commercial Partnerships Owned branding products and specialized technology: Largest digital advertising company in Latin America serving 18 markets with top Digital audio advertising solutions Mobile advertising level partnerships, including Leading audio network in Latam, owned DSP -
Slide 13: Leading Digital Marketing and Advertising Company in Southeast Asia
Leading Digital Marketing and Advertising Company in Southeast Asia Global Commercial Digital Partnerships and In- house performance & branding agency solutions Nepal Vietnam India Philippine Banglades s h Thailand Cambodi Massive Industry and Market Size [1] Malaysia Singaporea $5.6 Trillion 1,137
Slide 14: 365DIGITAL: A Sub-Saharan African Digital Marketing Leader
365DIGITAL: A Sub-Saharan African Digital Marketing Leader A digital media business offering a premium ad network and exclusive sales representations of TikTok, Anzu in-Game Advertising and the digital audio platform Triton, serving the South African market. Ideation, Branding and Performance Market
Slide 15: Mobile performance advertising global platform using programmatic technology
Mobile performance advertising global platform using programmatic technology +120 countries served Deep expertise in gaming, wellness, finance, food delivery, for users acquisition social networking Proprietary DSP - Mobile First Pricing - Margins - Performance Optimization User acquisition Re-Engag
Slide 16: Television Segment
Ze entravision Television Segment
Slide 17: Television Segment
Television Segment Univision and UniMás Drive 67%+ of the Spanish Language Viewing in EVC Markets Full-week audience share, Adults 18-49[3] 49 Early and late Local TV newscasts produced 2.3% 2.5% primary stations in 21 local US Univision largest affiliate group markets 27.7% 54.6% 11M+ 3.7M Hispani
Slide 18: Audio Segment
Ze entravision Audio Segment
Slide 19: Audio Segment
Audio Segment 46 316 16 96% O&O Radio Network U.S. Audio Latino Stations Affiliates Markets Coverage Nationally Syndicated Shows – Iconic Talent ▪ Top Brand Name Talent driving ratings ▪ Network programming (Piolin and Lucas) ▪ Majority of content created in LA Media Center Main Rado Formats Unique
Slide 20: Entravision Financials
Ze entravision Entravision Financials
Slide 21: Three-Year Financial Performance
Three-Year Financial Performance Entravision Revenue 2021 Entravision Adjusted EBITDA 2021 USD Millions USD Millions +67% +46% CAGR CAGR $760.2 $88.0 $60.4 $344.0 $41.2 $273.7 2019 2020 2021 2019 2020 2021 21
Slide 22: Q1-2022 Financial Performance
Q1-2022 Financial Performance Entravision Revenue Q1-2022 Entravision Adjusted EBITDA Q1-2022 USD Millions USD Millions +32% +28% CAGR CAGR $197.2 $18.1 $148.9 $14.2 Q1-2021 Q1-2022 Q1 - 2021 Q1 - 2022 22
Slide 23: Entravision Digital EBITDA Growth (before corporate expense)
Entravision Digital EBITDA Growth (before corporate expense) EBITDA Q1 2022 EBITDA Full Year 2019-2021 USD millions USD millions +52% +515% $9.1 $38.8* $6.0* $6.3* $0 Q1 2021 Q1 2022 2019 2020 2021 * Before non-controlling interest impact 23
Slide 24: Rapidly Accelerating Free Cash Flow
Rapidly Accelerating Free Cash Flow Entravision Free Cash Flow 2019-2021 USD Millions $78.7 $43.0 $14.3 $8.3 2019 2020 2021 Q1’ 2022 Conversion to EBITDA %: 20% 71% 89% 89% 24
Slide 25: Rock Solid Balance Sheet
Rock Solid Balance Sheet Total Net Leverage as of March 31, 2022 Actuals in USD Millions Concept Cash & Marketable Securities $211.6 Notes $211.5 Other Debt $1.9 Total Debt $213.4 TTM Consolidated Adjusted EBITDA $92.0 Total Leverage Per Credit Agreement 1.5x Total NET Leverage (net of accessible ca
Slide 26: Appendix
Ze entravision Appendix
Slide 27: Growth in Political Ad Revenue
Growth in Political Ad Revenue Entravision Political Net Revenue, 2008 - Q1’ 2022 USD Millions $28.8 $16.5 $12.2 $10.7 $9.3 $8.1 Presidential $7.0 Election Year $1.7 $1.6 $0.9 $1.1 $0.7 $0.3 $0.1 $0.3 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1’ 2022 % of Total Net Reven
Slide 28: Significant Global Digital Ad Industry Growth
Significant Global Digital Ad Industry Growth Global Internet Users and Digital Ad spending by Region Global Digital Ad spending USD $Billions, 2021-2025 Internet Digital Ad Spend $785 Users CAGR Region $717 2021 2021 2025 ‘21-’25 $648 Millions $Billions $Billions $571 $491 North America 332 220 328
Slide 29: Digital Segment Industry Growth Drivers
Digital Segment Industry Growth Drivers Global Digital Ad Spend US Programmatic Ad Spend Global App Install Ad Spend USD Billions USD Billions USD Billions 12% 24% CAGR 24% CAGR CAGR $785 $118 $142 $76 $492 $75 2021 2025 2020 2023 2020 2022 Mobile share from total digital: 75% 79% Source: eMarketer,
Slide 30: Digitally Transformed at the Core
Digitally Transformed at the Core 51 technology and information applications enable productivity, transparency and accountability Back-End Sales Operations Front-End Accounting Service Desk Traffic System CRM Data Visualization HR Management Talent Office & Documents Sales Op. Automatization Direct
Slide 31: Top Ranked Local News
Top Ranked Local News Focusing on issues relevant to Latinos, Entravision’s local newscasts are #1 or #2 in 8 markets among ALL 18-49 viewers, regardless of language HISPANIC MARKET EARLY NEWS NEWS DMA STATION ADULT 18-49 RATING RANK (2021-22) TP RANK 11 McAllen KNVO #1 1.8 20 El Paso KINT #1 2.0 24
Slide 32: Significant and Growing US Latino Market
Significant and Growing US Latino Market US Latino Market Highlights Young & Influential Growing Latino ❏ $1.9T Dollar Market; expected to account for 12% Population of all US buying power by 2025 [1]. 111.2M ❏ 62.1M U.S. Latinos in 2020 (111.2M in 2060). The 99.8M 87.6M largest U.S. ethnic or racia
Slide 33: EVC Media Presence in High Density Latino Population Markets Across The US
EVC Media Presence in High Density Latino Population Markets Across The US… Growing Latino Demographic Boston, MA Overall Latino population Springfield, MA growing faster than non- Sacramento, CA Hartford, CT Latino population and is Modesto, CA expected to reach 111 million by 2060 Reno, NV Stockto
Slide 34: Television Segment Growth Drivers
Television Segment Growth Drivers News Consumption by Hispanics Outpaces News Consumption by Non- Entravision Local News Hispanics[2] March 2022, A18-49 [1] Average weekly time spent per adult Growth Q2-2020 vs Q2-2019 Early News - 17 Markets +66% #1 or #2 regardless of language in 8 markets. +47% M
Slide 35: U.S. Hispanic Population Growth
U.S. Hispanic Population Growth Between 2010 and 2020, the U.S. Hispanic population grew by 23%, from 50.5M to 62.1M. Slightly more than half of the total U.S. population growth between 2010 and 2020 came from growth in the Hispanic population. 2010 Hispanic Share of U.S. Hispanic Population Growth