Executive Summary

Q1 revenue grew 16% year over year to $277.4M on strength in Digital and political advertising; however, an impairment charge tied to Meta’s ASP wind-down drove a GAAP net loss of $48.9M and EBITDA fell 65% to $4.5M .
Management confirmed Meta was ~50% of 2023 revenue and cash flow, and expects a “significant impact” as the ASP relationship ends July 1; the company is reviewing digital strategy, operations and cost structure .
Segment momentum mixed: Digital revenue +21% YoY to $237.5M but margins compressed (operating margin 1%); TV revenue -6% (investments in local news pressured margins), Audio -7% .
Outlook/pacings: For Q2, Digital pacing +6%, TV -1%, Audio -1%; 2024 capex guided to ~$6M; quarterly dividend of $0.05 declared (payable June 28, 2024) .
Subsequent event: EVC agreed to sell its digital advertising representation business to Aleph Group (expected closing by end of June), further reshaping the post-Meta portfolio .

What Went Well and What Went Wrong

What Went Well
- Solid top-line growth and political contribution: Net revenue +16% YoY to $277.4M, driven by Digital and political advertising .
- Broadcast audience and content expansion: April Nielsen ratings showed EVC’s morning news outperformed Telemundo in 14 of 18 head-to-head markets (adults 18–49) after expanded news investments .
- Balance sheet flexibility maintained: Cash and marketable securities $132.7M; total net leverage 1.4x even after $10M debt prepayment in Q1 .
What Went Wrong
- Meta ASP termination overshadowed results: 2023 Meta represented ~half of revenue and cash flow; Q1 included a $49.4M impairment charge related to the wind-down, driving a $(0.55) EPS loss .
- Margin pressure: Consolidated EBITDA declined 65% YoY to $4.5M; Digital operating margin fell to 1% amid lower partnership business margins .
- TV and Audio softness ex-political: TV revenue -6% and Audio -7% YoY as national spot weakened and retrans/spectrum usage receded; TV operating margin compressed with news expansion costs .

Financial Results

Overall comparisons vs prior quarters

Metric	Q3 2023	Q4 2023	Q1 2024
Net Revenue ($USD Millions)	$274.4	$320.1	$277.4
Net Income (Loss) Attributable to Common ($USD Millions)	$2.7	$(18.2)	$(48.9)
Diluted EPS ($)	$0.03	$(0.21)	$(0.55)
Consolidated EBITDA ($USD Millions)	$14.2	$16.2	$4.5
Free Cash Flow ($USD Millions)	$4.0	$(2.1)	$(2.8)

Segment net revenue

Segment Net Revenue ($USD Millions)	Q3 2023	Q4 2023	Q1 2024
Digital	$231.5	$274.9	$237.5
Television	$29.6	$31.1	$28.5
Audio	$13.4	$14.1	$11.4
Total	$274.4	$320.1	$277.4

Margins (as disclosed)

Segment/Metric	Q3 2023	Q4 2023	Q1 2024
Digital operating margin	—	—	1%
Digital operating margin on NR–CoR	—	—	7%
TV operating margin	35% operating cash flow margin	—	9% operating margin
Audio operating margin	—	—	-2%

Balance sheet and cash metrics

KPI	Q3 2023	Q4 2023	Q1 2024
Cash & Marketable Securities ($USD Millions)	$128.7	$118.9	$132.7
Total Debt (credit agreement definition) ($USD Millions)	$211.1	$210.6	$200.1
Leverage (credit agreement)	2.1x; Net leverage 1.1x	2.8x; Net leverage 1.6x	3.1x; Net leverage 1.4x
Capital Expenditures ($USD Millions)	$5.0	$7.4	$2.7
Dividend per Share	$0.05 (declared)	$0.05 (paid Mar 29, 2024)	$0.05 (payable Jun 28, 2024)

Estimates vs. actuals

Wall Street consensus estimates via S&P Global were unavailable at the time of analysis due to data access limitations; therefore, beat/miss vs. consensus cannot be assessed for Q1 2024, Q4 2023, or Q3 2023. We attempted to retrieve S&P Global consensus but were rate-limited.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Digital revenue pacing	Q2 2024	n/a	+6% vs prior year period	New qualitative update
TV revenue pacing	Q2 2024	n/a	-1% vs prior year period	New qualitative update
Audio revenue pacing	Q2 2024	n/a	-1% vs prior year period	New qualitative update
Capital Expenditures	FY 2024	Prior discussion in late 2023 suggested “normalized” $11–12M for 2024	~$6M for 2024	Lowered
Dividend	Quarterly	$0.05 declared/paying through Q1 end	$0.05 declared for Q2 (payable Jun 28, 2024)	Maintained

Note: Management did not issue formal quantitative revenue/EPS guidance ranges for Q2 or FY 2024; pacing metrics above are directional and described on the call .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
Meta ASP / Digital partnerships	Q3: Digital growth across geographies; new partnerships (Match, Pinterest) . Q4 PR: Meta to wind down ASP globally; FY23 impact $586.4M rev, ~$23.8M of EBITDA; strategic/cost review initiated .	Meta wind-down effective July 1; impairment recognized; digital strategy/operations/cost review ongoing .	Deteriorating for ASP; portfolio pivot accelerating.
AI/technology initiatives (Smadex)	Q3: Investing in AI/ML across digital; Smadex capabilities; 2024 focus .	Smadex building AI capabilities; returned to industry growth rates profitably .	Steady execution; early positive signs.
Political advertising	Q3: Set up for 2024; internal budget ~$40M (TV ~$30M, Radio ~$10M) .	Political aided Q1; expanded news to monetize election year; TV pacing ~-1% in Q2; audience critical to 2024 elections .	Building through 2024; structural investments.
Broadcast content expansion	Q3: Adding morning and weekend news .	Morning news outperforming Telemundo in 14/18 markets (Apr 18–49) .	Positive progress; supporting monetization.
Macro/national spot	Q3: National softness impacting TV/Audio .	National spot still challenging; Audio down YoY; TV ex-political softer .	Persistent headwinds.
Capital allocation	Q3: Committed to dividend; 2024 focus on organic/investment .	Dividend maintained; $10M debt prepaid in Q1; capex ~$6M for 2024 .	Conservative; liquidity preserved.
Portfolio reshaping	Q4 PR: Strategy review post-Meta .	Agreed to sell digital ad representation business to Aleph (post-quarter) .	Accelerating pivot.

Management Commentary

CEO Michael Christenson on Meta and strategic pivot: “Meta informed us that they were terminating their authorized sales partner program... In round numbers for 2023, Meta was half of our revenue and half of our cash flow... we have a strong balance sheet... we are excited about the opportunities ahead of us” .
CFO Chris Young on drivers and impairment: “Net loss... was $48.9 million... primarily driven by a $49.4 million impairment charge related to the wind-down of Meta's ASP program and lower margins in our Digital segment” .
CEO on 2024 focus: “Maximize our political revenue... provide highly-rated news and content... and build Smadex, our programmatic ad purchasing platform” .
CFO on news expansion and ratings: “Our Morning News debuted on January 6 and... in April... we outperformed Telemundo in 14 out of 18 markets where we compete head-to-head” .

Q&A Highlights

The Q1 call transcript content provided consists of prepared remarks and closing comments; no Q&A exchanges were included in the transcript provided .

Estimates Context

We attempted to pull S&P Global consensus for Q1 2024 (EPS, Revenue), Q4 2023, and Q3 2023 for beat/miss analysis but were rate-limited; consensus data was unavailable at time of analysis. As a result, we cannot quantify beats/misses versus Wall Street estimates for these periods.

Key Takeaways for Investors

EVC’s Q1 shows resilient revenue but significant GAAP earnings pressure from a $49.4M impairment tied to Meta’s ASP termination; expect a materially smaller Digital footprint post-July 1 and a transition period as the company pivots strategy .
Broadcast remains a key pillar in 2024 with political tailwinds and expanded local news inventory; early ratings outperformance should support core and political monetization into 2H .
Digital margin compression reflects mix (partnership business) and Meta transition; Smadex is the core focus with AI investments and a path back to industry growth rates profitably .
Liquidity and leverage are manageable (cash/marketable $132.7M; net leverage 1.4x); dividend maintained at $0.05, supporting income-oriented holders while preserving flexibility .
Near-term catalysts/risks: Q2 pacing updates, execution on political revenue ramp, closing of Aleph transaction, visibility into post-Meta digital portfolio margins, and any incremental restructuring steps .
Without consensus comparisons, the narrative is less about beats/misses and more about de-risking the portfolio and demonstrating EBITDA/cash flow stabilization in the back half as political spending accelerates .

Citations

Q1 2024 8-K press release and financials:
Q1 2024 earnings call transcript:
Q4 2023 8-K press release and financials:
Q3 2023 8-K press release, segment data, and call transcript:
Subsequent press release (sale to Aleph Group):

ENTRAVISION COMMUNICATIONS CORP (EVC)·Q1 2024 Earnings Summary