3. SEGMENT INFORMATION

The Company operates in three reportable segments, based upon the type of advertising medium: television broadcasting, radio broadcasting and digital media. 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.

Television Broadcasting

The Company owns and/or operates 55 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.

Radio Broadcasting

The Company owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

The Company owns and operates a national sales representation division, Entravision Solutions, through which the Company sells advertisements and syndicates radio programming to more than 300 stations across the United States.

Digital Media

The Company owns and operates digital media operations, offering mobile, digital and other interactive media platforms and services on Internet-connected devices, including local websites and social media, that provide users with news information and other content.

On April 4, 2017, the Company completed the acquisition of 100% of the stock of several entities collectively doing business as Headway (“Headway”), a provider of mobile, programmatic, data and performance digital marketing solutions primarily in the United States, Mexico and other markets in Latin America. See Note 5 to the Notes to the Consolidated Financial Statements.

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 and foreign currency (gain) loss. The Company generated 3% and 5% of its revenue outside the United States during the three- and nine-month periods ended September 30, 2017, respectively. There were no significant sources of revenue generated outside the United States during the three- and nine-month periods ended September 30, 2016. 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,						%
	2017			2016			Change			2017			2016			Change
Net revenue
Revenue from advertising and retransmission consent
Television	$	36,547		$	40,363			(9	)%	$	112,021		$	116,143			(4	)%
Radio		16,934			19,169			(12	)%		49,816			55,605			(10	)%
Digital		17,131			5,749			198	%		36,794			16,475			123	%
Total		70,612			65,281			8	%		198,631			188,223			6	%

Revenue from spectrum usage rights		263,943			-		*				263,943			-		*

Consolidated		334,555			65,281			412	%		462,574			188,223			146	%

Cost of revenue - television (spectrum usage rights)		12,131			-		*				12,131			-		*
Cost of revenue - digital media		9,910			2,281			334	%		20,424			6,493			215	%

Direct operating expenses
Television		14,365			15,604			(8	)%		43,992			46,113			(5	)%
Radio		11,306			11,284			0	%		33,362			33,510			(0	)%
Digital		4,560			1,350			238	%		9,884			4,718			109	%
Consolidated		30,231			28,238			7	%		87,238			84,341			3	%

Selling, general and administrative expenses
Television		5,796			5,547			4	%		16,524			16,186			2	%
Radio		4,647			5,138			(10	)%		13,932			14,976			(7	)%
Digital		2,370			1,264			88	%		5,587			3,632			54	%
Consolidated		12,813			11,949			7	%		36,043			34,794			4	%

Depreciation and amortization
Television		2,489			2,614			(5	)%		7,452			8,186			(9	)%
Radio		648			847			(23	)%		2,036			2,479			(18	)%
Digital		1,200			351			242	%		2,972			1,059			181	%
Consolidated		4,337			3,812			14	%		12,460			11,724			6	%

Segment operating profit (loss)
Television		265,709			16,598			1,501	%		295,865			45,658			548	%
Radio		333			1,900			(82	)%		486			4,640			(90	)%
Digital		(909	)		503		*				(2,073	)		573		*
Consolidated		265,133			19,001			1,295	%		294,278			50,871			478	%

Corporate expenses		8,209			5,728			43	%		19,695			16,625			18	%
Foreign currency transaction (gain) loss		(58	)		-		*				293			-		*
Operating income (loss)		256,982			13,273			1,836	%		274,290			34,246			701	%

Interest expense	$	(3,756	)	$	(3,894	)		(4	)%	$	(11,084	)	$	(11,619	)		(5	)%
Interest income		256			71			261	%		475			196			142	%
Income before income taxes		253,482			9,450			2,582	%		263,681			22,823			1,055	%

Capital expenditures
Television	$	1,863		$	1,641					$	7,815		$	4,199
Radio		453			660						1,296			2,492
Digital		50			35						63			231
Consolidated	$	2,366		$	2,336					$	9,174		$	6,922

	September 30,			December 31,
Total assets	2017			2016
Television		559,793			363,852
Radio		126,812			129,825
Digital		77,816			24,244
Consolidated	$	764,421		$	517,921

*	Percentage not meaningful.