Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

5. SEGMENT INFORMATION

The Company’s management has determined that the Company operates in three reportable segments as of September 30, 2021, based upon the type of advertising medium, which segments are digital, television and radio. The Company’s segments results reflect information presented on the same basis that is used for internal management reporting and it is also how the chief operating decision maker evaluates the business.

Digital

The Company provides a suite of digital advertising solutions that offer advertisers the opportunity to reach and engage with their target audiences by providing access to digital inventory at scale. These solutions include the Company's offerings in Latin America, Europe and Southeast Asia, where the Company maintains sales partnerships with major global media platforms.

Television

As of September 30, 2021, the Company owns and/or operates 53 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company’s television operations comprise the largest affiliate group of both the top-ranked primary television network of Univision and Univision’s UniMás network. The television segment includes revenue generated from advertising, retransmission consent agreements and the monetization of the Company’s spectrum assets.

Radio

As of September 30, 2021, the Company owns and operates 46 radio stations (37 FM and 9 AM) located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The Company also operates Entravision Solutions as its national sales representation division, through which it sells advertisements and syndicates radio programming to more than 100 markets across the United States.

Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value contingent consideration, impairment charge, foreign currency (gain) loss and other operating (gain) loss. The Company generated 70% and 14% of its revenue outside the United States during the three-month periods ended September 30, 2021 and 2020, respectively. The Company generated 68% and 15% of its revenue outside the United States during the nine-month periods ended September 30, 2021 and 2020, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Nine-Month Period
	Ended September 30,						%			Ended September 30,						%
	2021			2020			Change			2021			2020			Change
Net revenue
Digital	$	146,121		$	13,655			970	%	$	377,826		$	38,359			885	%
Television		36,450			37,786			(4	)%		106,598			103,940			3	%
Radio		16,437			11,537			42	%		41,874			30,044			39	%
Consolidated		199,008			62,978			216	%		526,298			172,343			205	%
Cost of revenue - digital		124,332			7,808		*				318,118			21,602		*
Direct operating expenses
Digital		6,234			2,968			110	%		17,373			9,104			91	%
Television		15,565			14,582			7	%		45,737			43,465			5	%
Radio		6,784			6,628			2	%		20,370			20,428			(0	)%
Consolidated		28,583			24,178			18	%		83,480			72,997			14	%
Selling, general and administrative expenses
Digital		6,953			2,415			188	%		18,691			9,299			101	%
Television		4,583			4,396			4	%		13,811			15,006			(8	)%
Radio		2,994			3,072			(3	)%		8,987			10,066			(11	)%
Consolidated		14,530			9,883			47	%		41,489			34,371			21	%
Depreciation and amortization
Digital		2,479			112		*				5,673			1,262			350	%
Television		3,087			3,387			(9	)%		9,410			9,673			(3	)%
Radio		335			435			(23	)%		1,076			1,384			(22	)%
Consolidated		5,901			3,934			50	%		16,159			12,319			31	%
Segment operating profit (loss)
Digital		6,123			352		*				17,971			(2,908	)	*
Television		13,215			15,421			(14	)%		37,640			35,796			5	%
Radio		6,324			1,402			351	%		11,441			(1,834	)	*
Consolidated		25,662			17,175			49	%		67,052			31,054			116	%
Corporate expenses		7,253			6,287			15	%		21,756			18,511			18	%
Impairment charge		166			-		*				1,604			39,835			(96	)%
Foreign currency (gain) loss		177			(680	)	*				454			673			(33	)%
Other operating (gain) loss		(2,431	)		(2,683	)		(9	)%		(4,867	)		(5,549	)		(12	)%
Operating income (loss)		20,497			14,251			44	%		48,105			(22,416	)	*
Interest expense	$	(1,714	)	$	(1,969	)		(13	)%	$	(5,287	)	$	(6,673	)		(21	)%
Interest income		12			467			(97	)%		235			1,630			(86	)%
Dividend income		207			3		*				211			26			712	%
Income (loss) before income taxes		19,002			12,752			49	%		43,264			(27,433	)	*
Capital expenditures
Digital	$	493		$	462					$	1,367		$	1,233
Television		685			1,243						2,146			5,750
Radio		143			136						436			467
Consolidated	$	1,321		$	1,841					$	3,949		$	7,450
	September 30,			December 31,
Total assets	2021			2020
Digital		280,613			196,020
Television		433,669			425,899
Radio		114,121			125,426
Consolidated	$	828,403		$	747,345

* Percentage not meaningful.