Segment Data

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Data

18. SEGMENT DATA

The Company’s management has determined that the Company operates in three reportable segments as of December 31, 2021, based upon the type of advertising medium, which segments are digital, television and audio (formerly 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's digital segment, whose operations are located in Latin America, Europe, the United States, Asia and Africa, reaches a global market, with a focus on advertisers in emerging economies that wish to advertise on digital platforms owned and operated primarily by global media companies.

The Company provides digital end-to-end advertising solutions that allow advertisers to reach online users worldwide. These solutions are comprised of four separate business units:
 

•the Company's digital commercial partnerships business;

•Smadex, the Company's programmatic ad purchasing platform;

•the Company's branding and mobile performance solutions business; and

•the Company's digital audio business.
 

Through the Company's digital commercial partnerships business – the largest of its digital business units – the Company acts as an intermediary between primarily global media companies and advertising customers or their ad agencies. The global media companies represented by the Company include Meta Platforms, or Meta (formerly known as Facebook Inc.), Spotify AB, or Spotify, ByteDance Ltd., also known as TikTok, and Twitter, Inc., or Twitter, as well as other media companies, in 30 countries throughout the world. The Company's dedicated local sales teams sell advertising space on these media companies' digital platforms to its advertising customers or their ad agencies for the placement of ads directed to online users of a wide range of Internet-connected devices. The Company also provides some of its advertising customers billing, technological and other support, including strategic marketing and training, which it refers to as managed services.

Smadex is the Company's proprietary automated purchasing platform, on which advertisers can purchase ad inventory. This practice – the purchase and sale of advertising inventory electronically – is referred to in the Company's industry as programmatic advertising. Smadex is also a “demand-side" platform, which allows advertisers to purchase space from online marketplaces on which

media companies list their advertising inventory. Most advertisements acquired through Smadex are placed on mobile devices, but they may also be placed on computers and Internet-connected televisions. The Company also provides managed services to some of its advertising customers in connection with their use of its Smadex platform.

The Company also offers a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with consumers, primarily on mobile devices. The Company's digital audio business provides digital audio advertising solutions for advertisers in the Americas.

Television

The Company's television operations reach and engage U.S. Hispanics in the United States. The Company owns and/or operates 49 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company generates revenue from advertising, retransmission consent agreements and the monetization of spectrum usage rights in these markets.

Audio

The Company's audio operations reach and engage U.S. Hispanics in the United States. The Company owns and operates 46 radio stations (37 FM and 9 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. The Company generated 69%, 36% and 18% and of its revenue outside the United States during the years ended December 31, 2021, 2020 and 2019, respectively (see Note 4).

The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands):

	Years Ended December 31,									% Change			% Change
		2021			2020			2019		2021 to 2020			2020 to 2019
Net Revenue
Digital	$	555,338		$	143,309		$	68,908			288	%		108	%
Television		146,839			154,456			149,654			(5	)%		3	%
Audio		58,015			46,261			55,013			25	%		(16	)%
Consolidated		760,192			344,026			273,575			121	%		26	%
Cost of revenue - digital		466,517			106,928			36,757			336	%		191	%
Direct operating expenses
Digital		25,481			15,227			18,357			67	%		(17	)%
Television		63,016			61,145			61,778			3	%		(1	)%
Audio		27,952			28,537			39,277			(2	)%		(27	)%
Consolidated		116,449			104,909			119,412			11	%		(12	)%
Selling, general and administrative expenses
Digital		26,123			15,404			13,904			70	%		11	%
Television		18,381			19,748			22,638			(7	)%		(13	)%
Audio		12,081			13,252			17,423			(9	)%		(24	)%
Consolidated		56,585			48,404			53,965			17	%		(10	)%
Depreciation and amortization
Digital		8,377			2,561			4,723			227	%		(46	)%
Television		12,477			12,918			10,059			(3	)%		28	%
Audio		1,566			1,803			1,866			(13	)%		(3	)%
Consolidated		22,420			17,282			16,648			30	%		4	%
Segment operating profit (loss)
Digital		28,840			3,189			(4,833	)		804	%	*
Television		52,965			60,645			55,179			(13	)%		10	%
Audio		16,416			2,669			(3,553	)		515	%	*
Consolidated		98,221			66,503			46,793			48	%		42	%
Corporate expenses		32,993			27,807			28,067			19	%		(1	)%
Change in fair value of contingent consideration		8,224			—			(6,478	)	*				(100	)%
Impairment charge		3,023			40,035			32,097			(92	)%		25	%
Foreign currency (gain) loss		508			(1,052	)		754		*			*
Other operating (gain) loss		(6,998	)		(6,895	)		(5,994	)		1	%		15	%
Operating income (loss)	$	60,471		$	6,608		$	(1,653	)		815	%	*
Capital expenditures
Digital	$	2,073		$	1,659		$	318
Television		2,833			7,184			24,174
Audio		705			641			792
Consolidated	$	5,611		$	9,484		$	25,284
Total assets
Digital	$	309,347		$	196,020		$	51,979
Television		433,303			425,899			465,758
Audio		108,692			125,426			138,463
Consolidated	$	851,342		$	747,345		$	656,200