Entravision Communications Corporation · NYSE:EVC
Entravision Communications — Singular Research: Best of the Uncovered Webinar (December 2020)
22 slides from Entravision Communications's conference presentation, Dec 9, 2020
Slide 1: Singular Research: Best of the Uncovered Webinar
Singular Research: Best of the Uncovered Webinar December 9th, 2020 Chris Young Entravision Chief Financial Officer
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 t
Slide 3: About Entravision
About Entravision Entravision is a diversified global marketing, technology and media company serving clients throughout the United States and in more than 20 countries across Latam, Europe and Asia. Our dynamic portfolio of services spans the television, radio, and digital media markets. Founded 199
Slide 4: Investment Highlights
Investment Highlights Solid Financial Significant & Growing Long-Term Position Target Market Television Contracts ❏ Strong Free Cash-Flow conversion (65% of Ebitda for Q320) ❏ U.S. Latino + Latam growing ❏ Entravision is Univision’s largest TV ❏ Solid liquidity > $136M in cash & market ($1.9Tn by 202
Slide 5: Significant and Growing Target Market
Significant and Growing Target Market US Latino Market Highlights LATINOS: YOUNG, INFLUENTIAL AND VALUABLE ❏ $1.5 Trillion Dollar Market; expected to top $1.9 Trillion by 2023. 108.9M ❏ 59.9M U.S. Latinos in 2018 (108.9M in 97.4M 85.0M 2058). The largest U.S. ethnic or racial 72.2M group. 59.9M ❏ 31%
Slide 6: Experienced Management Team
Experienced Management Team Walter Ulloa Karl Alonso Meyer Chairman & CEO Chief Revenue Officer Entravision founder. 40+ years of 30+ years of experience in experience in Spanish language broadcasting, radio, television, broadcast. digital and advertising. 24 years at Entravision 16 years at Entravisi
Slide 7: Entravision Operating Segments
Entravision Operating Segments
Slide 8: Entravision's Three Segments
Entravision’s Three Segments TV Radio Digital 55 TV Stations in the U.S. 48 Radio Stations in the U.S. 22 Countries Newscasts in 21 markets Leading Hispanic influencers Programmatic, branding and performance marketing platform, Big Tech sales partnerships $104M Q3 YTD revenues $30M Q3 YTD revenues $3
Slide 9: Television Segment
Television Segment Univision and UniMás Drive 56%+ of the Spanish Language Viewing in EVC Markets Full-week audience share, Adults 18-49[3] 55 Early and late Local TV newscasts produced 1.8% primary stations in 21 local US 2.4% Univision largest affiliate group markets 40.0% 43.2% 12M+ 4.2M Households
Slide 10: Television Segment Growth Drivers
Television Segment Growth Drivers News Consumption by Hispanics Outpaces News Consumption by Entravision Local News Non-Hispanics[3] September 2020[1] Average weekly time spent per adult Growth Q2-2020 vs Q2-2019 Early News - 20 Markets +66% #1 or #2 regardless of language in 10 markets. +47% Year-o
Slide 11: Radio Segment
Radio Segment 48 361 17 96% O&O Radio Network U.S. 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 Unique Specialty Stations SPANISH
Slide 12: Growth in Political Ad Revenue
Growth in Political Ad Revenue Entravision Political Net Revenue, 2006-2020 USD Millions 28.2* 16.5 11.9 10.7 9.3 8.1 7.0 5.4 0.9 4.5 0.9 1.1 0.5 0.1 0.7 0.3 0.3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E % of Total 2% 0% 3% 0% 4% 0% 7% 0% 4% 0% 4% 0% 2% 0% 9% Net Re
Slide 13: Digital Segment
Digital Segment US - Digital Programmatic & US - Audio + Marketing Video & Data Mobile O&O Content Solutions Performance ● Digital marketing ● Owned & operated news ● Video advertising ● Proprietary agency services for SMBs marketplace programmatic buying platform (DSP) ● Social media advertising ●
Slide 14: Digital Segment Growth Drivers
Digital Segment Growth Drivers Global Digital Ad Spend US Programmatic Ad Spend Global App User Spend USD Billions USD Billions USD Billions 13% 15% CAGR 23% CAGR CAGR $485B $154B $95B $333B $63B $102B 2020 2023 2020 2022 2020 2023 Mobile share from total digital: 73% 80% Source: eMarketer, “Digital
Slide 15: A leading digital advertising company serving the Latin American and U.S. Hispanic markets
A leading digital advertising company i) Big Tech sales partnerships in 17 Latam countries: serving the Latin American and U.S. Hispanic markets Founded 2010 ii) Owned branding products and technology: Headquartered in Miami, FL. As disclosed on Entravision Q3-2020 earnings call, expecting revenue o
Slide 16: Entravision Financials
entravision Entravision Financials
Slide 17: Q3-2020 Financials Update
Q3-2020 Financials Update Entravision EBITDA Q3-2020 USD millions +80% YoY +865% $16.4 QoQ $9.1 $1.7 Q3-2020 Q2-2020 Q3-2019 17
Slide 18: Solid Balance Sheet
Solid Balance Sheet Total Net Leverage as of September 30, 2020 Actuals in USD Millions Concept Cash & Marketable Securities $136.5 Notes $0.0 Other Debt $216.0 Total Debt $216.0 TTM Consolidated Adjusted EBITDA $39.2 Total Leverage Per Credit Agreement 3.60x Total NET Leverage (net of all cash) 2.0
Slide 19: Q4-2020 Pacing
Q4-2020 Pacing Entravision Q4-2020 Pacing As of Q3-2020 earnings call on November 5, 2020 Q4-2020 Digital (1) +250% TV +46% Radio +15% Note: (1) Includes revenue of $55M and EBITDA of $1M-$1.5M from Cisneros Interactive. 19
Slide 20: Appendix
Aentravision Appendix
Slide 21: Radio & TV And Latino Population Across The US
Radio & TV And Latino Population Across The US Growing Latino Demographic Boston, MA Overall Latino population Springfield, MA growing faster than Sacramento, CA non-Latino population Modesto, CA Hartford, CT and is expected to reach 85 million by 2038 Reno, NV Stockton, CA Aspen, CO 2014 Hispanic Sh
Slide 22: Top Ranked Local News
Top Ranked Local News Focusing on issues relevant to Latinos, Entravision’s local newscasts are #1 or #2 in 10 markets among ALL 18-49 viewers, regardless of language HISPANIC MARKET EARLY NEWS NEWS ADULT 18-49 DMA STATION RANK (2021) TP RANK RATING 10 Orlando WVEN #2 tie 0.7 11 McAllen KNVO #1 tie
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