4. SEGMENT INFORMATION

The Company’s management has determined that the Company operates in three reportable segments as of March 31, 2018, based upon the type of advertising medium, which segments are television, radio, and digital. 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

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.

Radio

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 approximately 300 stations across the United States.

Digital

The Company owns and operates digital 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.

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 19% of its revenue outside the United States during the three-month period ended March 31, 2018. There were no significant sources of revenue generated outside the United States during the three-month period ended March 31, 2017. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period
	Ended March 31,						%
		2018			2017		Change
Net revenue
Television	$	34,491		$	37,710			(9	)%
Radio		14,103			15,719			(10	)%
Digital		18,244			4,081			347	%
Consolidated		66,838			57,510			16	%

Cost of revenue - digital media		10,625			1,752			506	%

Direct operating expenses
Television		15,550			14,754			5	%
Radio		10,674			11,017			(3	)%
Digital		4,809			1,321			264	%
Consolidated		31,033			27,092			15	%

Selling, general and administrative expenses
Television		5,972			5,451			10	%
Radio		4,606			4,704			(2	)%
Digital		2,716			1,045			160	%
Consolidated		13,294			11,200			19	%

Depreciation and amortization
Television		2,204			2,463			(11	)%
Radio		619			726			(15	)%
Digital		1,116			357			213	%
Consolidated		3,939			3,546			11	%

Segment operating profit (loss)
Television		10,765			15,042			(28	)%
Radio		(1,796	)		(728	)		147	%
Digital		(1,022	)		(394	)		159	%
Consolidated		7,947			13,920			(43	)%

Corporate expenses		5,975			5,867			2	%
Change in fair value of contingent consideration		2,100			-		*
Foreign currency (gain) loss		213			-		*
Operating income (loss)		(341	)		8,053		*

Interest expense	$	(3,398	)	$	(3,645	)		(7	)%
Interest income		913			109			738	%
Dividend income		128			-		*
Other income (loss)		22			-		*
Income (loss) before income taxes		(2,676	)		4,517			(159	)%

Capital expenditures
Television	$	2,080		$	967
Radio		81			268
Digital		66			9
Consolidated	$	2,227		$	1,244

		March 31,			December 31,
		2018			2017
Total assets
Television		543,974			556,942
Radio		122,636			126,248
Digital		79,292			82,777
Consolidated	$	745,902		$	765,967

*	Percentage not meaningful.