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a day in the life | entravision communications corporation 2006 annual report a day in the life | book one Entravision Communications Corporation is the second largest Spanish-language media company in the United States, with television and radio broadcast properties and outdoor advertising operations clustered in many of the fastest- growing and highest-density major U.S. Hispanic markets. financial highlights Entravision media reach approximately two-thirds of the 42.7 million U.S. Hispanic population. 2006 vs 2005 Entravision is the largest affiliate group of Univision and in thousands, except share and per share data 2006 2005 % change 2004 owns and/or operates 51 primary television stations, of which 23 are Univision Network affiliates and 18 TeleFu- Net revenue $ 291,752 $ 280,964 4 $ 259,053 tura Network affiliates. In addition, Entravision owns and Operating expenses 175,791 172,040 2 162,366 operates 47 Spanish-language radio stations in 18 U.S. Consolidated adjusted EBITDA 100,081 92,473 8 79,956 markets, primarily in the Southwest, with large Hispanic Net income (loss) (134,599) (9,657) – 6,164 populations. Net loss per share, basic and diluted $ (1.27) $ (0.08) – $ (0.09) The company’s outdoor advertising operations consist of Weighted average common shares approximately 10,600 outdoor billboard facings in predomi- outstanding, basic and diluted 106,078,486 124,293,792 – 105,758,136 nantly Hispanic neighborhoods of Los Angeles and New York City, the #1 and #2 Hispanic markets in the United States, respectively, as well as transit advertising in Fresno and Sacramento, California and Tampa, Florida. Entravision’s headquarters are located in Santa Monica, California. The company’s stock is traded on The New York Stock Exchange under the symbol “EVC.” book 1 | page 1 We have talked in past Letters about the sub- make our strategy live, breathe and succeed. stantial growth of the U.S. Hispanic population, resulting from what many consider the Our broadcast properties include some of fourth great wave of immigration since the the most popular and most trusted media in nation’s founding. We have documented the their markets. Furthermore, they represent a enrichment of our national culture by the valued resource for a rapidly growing roster Hispanic influx and the tremendous gain in of national and local advertisers. Every step overall U.S. Hispanic purchasing power that we take is directed toward expanding and now fuels an important part of our nation’s strengthening these positions. economy, as well as Entravision’s intimate involvement in the growth and success of the Our Tactics U.S. Hispanic community. We seek to build television and radio media clusters in major, fast-growing and high- Now, with the completion of the privatization density U.S. Hispanic markets. Ideally, a to our fellow stockholders of Univision Communications Inc., anticipat- cluster will include three elements: a ed in the first half of 2007, Entravision will Univision Network television broadcast sta- become the largest publicly held Spanish-lan- tion, a TeleFutura Network television broad- guage media company in the United States. cast station, and multiple radio broadcast Our Strategy stations. In especially high-density Hispanic Once again, we capitalized on our market-leading television and radio ratings We can summarize our long-term business markets, such as South Texas, we also will strategy simply: manage and grow our port- add English-language television and radio to produce solid year-over-year growth in revenue and cash flow. Our record folio of high performance media assets in stations to our clusters. the fastest-growing and most dense Hispanic performance in 2006 is the direct result of the continuing successful execution communities and provide the best possible During 2006, we sold radio properties in media experience for our Hispanic audiences. markets where we could not economically of our long-term strategy. achieve promising television and radio clus- Our strategic goal is to achieve above-average ters and redeployed these assets to markets growth in revenue and earnings and thereby and purposes where we could leverage present We have pursued the singular, driving purpose since the inception of our com- increase investment value for our stockhold- and future cluster positions for faster growth. ers. We expect to accomplish this by forging pany to serve the entertainment and information interests of U.S. Hispanics— a position as one of the growth leaders in the In the process, we added to our balance sheet media industry. strength, improved operating margins, freed now the largest minority group in the United States—and thereby to build an resources to initiate a stock repurchase pro- attractive, profitable and growing media company on behalf of our stockhold- We stated last year “demographics is our gram, and gained the financial flexibility to destiny.” In this annual report, we give you acquire additional media properties that fit ers. This strategy continues today. insight into the tactical approach we are our strategy as they become available. employing to fulfill that destiny. In addition, through a photo essay, A Day in the Life of Sale of Radio Stations Entravision, we give a face to the people who We began 2006 by announcing the comple a day in the life | entravision book 1 | page 3 tion of the sale of radio stations KBRG-FM owned. This will be the 19th of our 23 ter strategy in several markets, but Denver the station increased its ratings by 126% for and KLOK-AM serving the San Francisco/ Univision markets where we have a televi- makes an especially good case in point. the 18-49 age demographic between Fall 2005 San Jose, California market to Univision sion duopoly. We expect the new station to go Denver is the 15th largest Hispanic market and Fall 2006 for its full broadcast schedule, for $90 million in a highly beneficial trans- live in the fourth quarter of 2007 or the first in the United States but the eighth fastest- according to Arbitron. Our other radio sta- action. Univision paid us with 12.6 mil- quarter of 2008. growing. The number of Hispanic television tions in Denver performed well too. Ratings lion Entravision shares, which we retired, households in Denver increased by 50% from for our KJMN-FM grew by 100% for this reducing Univision’s ownership stake in We will launch our second Fox Network 2000 to 2007. Entravision owns/operates a same period for the audience of age 12 and Entravision to 19.6%. English-language television station in Laredo, rich media cluster in this market, consisting older and our KXMA-AM also grew by 100% Texas by the third quarter of 2007. We began of Univision and TeleFutura television sta- for the same age group for the important In November 2006, we announced the com- operating our first Fox Network affiliate in tions and three radio stations. “morning drive” period, Monday-Friday, 6 pletion of the sale of our five Dallas radio McAllen, Texas in the fourth quarter of 2005. am to 10 am. stations to Liberman Broadcasting of Dallas, These steps are consistent with our objec- Our Univision affiliate is the #1 Spanish- Inc. for an adjusted purchase price of $92.5 tive of serving the media needs of Hispanic language television station in Denver, and The performance of our Denver assets is a million, a highly accretive sale, and previous- consumers. In border markets such as South our TeleFutura station is #2. Even though fitting example of the power of Spanish-lan- ly, in the third quarter, we sold our sole radio Texas, Hispanics account for more than 85% Hispanics account for slightly less than 20% guage media and of our success of leveraging asset in Tucson. The Dallas market, like of the total population. Thus, we now can of Denver’s population, our Univision affili- multiple media outlets with our cluster strat- that of San Francisco and Tucson, offered draw an increasing number of bilingual and ate is tied for the #2 position with NBC egy to serve the fast-growing and economi- us limited growth opportunities because we English-dominant Hispanic television view- among all stations in the market regardless cally powerful Hispanic market. could not obtain television and radio clusters ers in these markets. The Fox launches fit of language during prime time from Monday consistent with our strategic objectives. well with our Hispanic market cluster strate- through Friday, according to NSI Nielsen Media Performance Highlights gy. In McAllen, for example, our cluster now November 2006 Sweep. In the 30 media markets in which we par- Stock Repurchase consists of Univision, TeleFutura, and Fox ticipate, Hispanics have accounted for 100% On November 1, Entravision’s Board of television stations and four radio stations. The radio part of our Denver cluster has of the total population growth for Adults Directors approved the repurchase of up to achieved a similar leadership position. A 18-34 and 18-49 from 2000 to 2007. Denver $100 million of outstanding common stock. During 2006, we purchased a permit for front-page story in the Denver Post in January is not an isolated example of our success As of March 1, 2007, approximately 1.5 mil- a full-power television station to serve 2007 told the dramatic story of the climb of in capitalizing on this population growth. lion shares of stock had been repurchased at Wichita/Hutchinson, Kansas, the 53rd larg- our KXPK-FM station to the “number one” We had the #1 station in 12 of our televi- an average cost of $7.50 per share. est U.S. Hispanic market. We plan to begin in the market, regardless of language.

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