Television Revenue Growth (Percentage) 25 Industry 20 22% EVC 15 12% 12% 12% 10 10% 8% 8% 8% 8% 5
Total Page：16
File Type：pdf, Size：1020Kb
CitiCiti 1818thth AnnualAnnual GlobalGlobal Entertainment,Entertainment, MediaMedia && TelecommunicationsTelecommunications ConferenceConference Phoenix,Phoenix, ArizonaArizona JanuaryJanuary 9,9, 20082008 UseUse ofof non-GAAPnon-GAAP FinancialFinancial MeasuresMeasures This presentation includes certain non-GAAP financial measures. The company has previously provided a reconciliation between these non-GAAP financial measures and the most directly comparable GAAP measure. That reconciliation was included in the company’s press release reporting results for the third quarter 2007, which has been posted on the company’s website and filed with the SEC under the cover of form 8-K. Forward-LookingForward-Looking StatementsStatements DisclosureDisclosure This presentation includes certain forward-looking statements and projections provided by the Company. Any such statements and projections reflect various estimates and assumptions by the Company concerning anticipated results. No representations or warranties are made by the Company or any of its affiliates as to the accuracy of any such statements or projections. Whether or not such forward-looking statements or projections are in fact achieved will depend upon future events some of which are not within the control of the Company. Accordingly, actual results may vary from the projected results and such variations may be material. Statements contained herein describing documents and agreements are summaries only and such summaries are qualified in their entirety by reference to such documents and agreements. PresentationPresentation OverviewOverview • Company • A leading diversified Spanish-language media company, serving the fast-growing U.S. Hispanic market, with a unique group of assets including television, radio and outdoor • Hispanic Market Opportunity • The U.S. Hispanic population, average household income and consumer spending power are all growing at a rate faster than that of non-Hispanics • Media Assets • Television: largest Univision and TeleFutura affiliate group • Radio: one of the largest U.S. Spanish-language radio groups • Outdoor: approximately 10,400 outdoor faces primarily in top-2 U.S. Hispanic markets • Financial • Lower net debt to Consolidated adjusted EBITDA of 4.0x • Improved balance sheet • Repurchased 21% of shares outstanding since 2006 through the 3rd quarter of 2007 • Board authorized a $100M stock buyback program of which we continue to have capacity to repurchase additional shares InvestmentInvestment HighlightsHighlights • A Leading Diversified Media Company Serving U.S. Hispanics • Media Clusters Located in Many of the Fastest-Growing and Highest-Density U.S. Hispanic Markets • Well-Positioned to Accelerate Cash Flow Growth • Revenue growth outperforming the industry • Radio operating as second cash flow engine • Significant upside from developmental stations • Efficient Cost Structure • Virtually no cash network television programming expense • Centralized radio infrastructure • Experienced Management with Significant Equity Ownership WeWe AreAre LocatedLocated inin thethe Fastest-GrowingFastest-Growing HispanicHispanic MarketsMarkets Springfield, MA Boston, MA Hartford, CT Sacramento, CA Reno, NV New York, NY Denver, CO Stockton, CA Modesto, CA Washington, DC Monterey/ Fresno, CA Aspen, CO Colorado Springs, CO Salinas, CA Las Vegas, NV Santa Barbara, CA Palm Springs, CA Albuquerque, NM Los Angeles, CA Phoenix, AZ San Diego, CA Lubbock, TX Yuma/El Centro, CA El Paso, TX San Angelo, TX Odessa, TX Houston, TX Orlando, FL Entravision Communications Tampa, FL • 51 Television Primary Stations Laredo, TX Corpus Christi, TX • 48 Radio Stations Miami, FL • Approximately 10,400 Outdoor Advertising Faces McAllen, TX LocatedLocated inin 1111 ofof thethe 1515 Fastest-Fastest- GrowingGrowing MajorMajor U.S.U.S. HispanicHispanic MarketsMarkets Hispanic TVHH Household Growth 2000-2008 (based on 2008 top 25 Hispanic DMA’s) Hispanic % Hispanic 2008 vs 2000 Hispanic EVC Media DMA Growth Rank Market Rank TVHH % Growth Properties 2 17 Orlando 136% TV / Radio 3 6 Dallas/Ft. Worth 104% Outdoor 4 22 Las Vegas 94% TV / Radio 5 8 Phoenix (Prescott) 78% Radio 6 19 Tampa/St. Pete (Sarasota) 76% TV / Outdoor Washington D.C. 7 20 66% TV (Hagerstown) 8 15 Denver 61% TV / Radio 9 4 Houston 61% Radio Sacramento/Stockton/ 12 11 45% Radio / Outdoor Modesto 13 24 Boston (Manchester) 43% TV Harlingen-Wslco-Brnsvl- 15 10 35% TV / Radio McAllen Source: Nielsen Universe Estimates as dated. UniquelyUniquely PositionedPositioned inin 1212 ofof thethe 1515 Highest-DensityHighest-Density U.S.U.S. HispanicHispanic MarketsMarkets 2008 Hispanic TVHH Household Penetration Hispanic Hispanic EVC Media DMA % TVHH Hispanic Density Rank Market Rank Properties 1 34 Laredo 93% TV 2 10 McAllen 83% TV / Radio 3 16 El Paso 71% TV / Radio 4 35 Yuma/El Centro 54% TV / Radio 5 26 Corpus Christi 52% TV 7 3 Miami 41% Radio 8 13 Fresno 40% Outdoor 10 39 Odessa/Midland 37% TV 11 37 Palm Springs 36% TV / Radio Albuquerque- Santa 13 12 35% TV / Radio Fe 14 1 Los Angeles 32% Radio / Outdoor 15 46 Lubbock 30% TV / Radio Source: 2008 Nielsen Universe Estimates. ContinuedContinued U.S.U.S. HispanicHispanic GrowthGrowth StrengthensStrengthens BusinessBusiness StrategyStrategy 2010 – 49.9 million U.S. Hispanics 2010 Percent Hispanic Population by County Source: Global Insight – 2007 Hispanic Market Monitor; Map Courtesy of Geoscape International, American Marketscape DataStream: 2003 Series UseUse ofof Spanish-LanguageSpanish-Language IsIs IncreasingIncreasing AmongAmong U.S.U.S. HispanicsHispanics Hispanics, that speak some Spanish at home, are expected to substantially grow and approach 50 million by 2027. U.S Hispanic Population (in millions) Spanish Only Spanish & English 50 40 30 20 10 0 2002 2007 2012E 2017E 2022E 2027E Source: Global Insight – 2007 Hispanic Market Monitor RapidlyRapidly GrowingGrowing U.S.U.S. HispanicHispanic BuyingBuying PowerPower U.S. Hispanic Buying Power (projected % growth from 2002) 450% Non-Hispanic Hispanic 500 300% 190% 250 110% 47% 196% 143% 99% 64% 0 31% 2002 2007 2012E 2017E 2022E 2027E $576 $845 $1211 $1668 $2302 $3164 U.S. Hispanic Buying Power ($ Billions) Source: Global Insight – 2007 Hispanic Market Monitor U.S.U.S. HispanicHispanic AdvertisingAdvertising ForecastForecast Advertisers are responding to powerful demographic trends by dedicating more dollars to Spanish-language media. ($ millions) 4000 3,655 3,432 3500 3,091 3,211 0.0% R 1 2,790 3000 CAG 2,463 2500 2,130 2,220 1,890 2000 1,710 1,408 1500 1000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E Source: Hispanic Business Inc, The U.S. Hispanic Media Market, 1999-2005, 2000-2007 UnivisionUnivision AffiliatesAffiliates inin KeyKey U.S.U.S. HispanicHispanic GrowthGrowth MarketsMarkets Springfield Boston Hartford Reno Denver Washington, D.C. Monterey Las Colorado Vegas Springs Palm Springs Santa Barbara Albuquerque Lubbock San Diego Yuma- Odessa El Centro Orlando San El Paso Angelo Tampa Laredo Corpus Christi McAllen TelevisionTelevision OverviewOverview • Univision Networks Provide Premier Spanish-language Programming • Univision Networks • Largest Univision affiliate group in 23 markets • Largest TeleFutura affiliate group in 18 markets • In our markets, Univision/Telefutura duopolies enjoy 75% of the Spanish- language broadcast television prime time Adult 18-49 share • Revenue Growth Outperforms the Industry PremierPremier ProgrammingProgramming • Exclusive Agreement with Univision • Highest-rated programming • Virtually no cash cost for programming • 25-year affiliation agreements • Strong Local News Programming • Brands stations in local markets • Relevant community-based content Top-Ranked Local News Focusing on issues relevant to Hispanics, Entravision’s local newscasts are #1 or #2 in 14 markets in OVERALL 18-34 viewers. Hispanic Adult 18-34 DMA Station News TP Rank Market Rank Rating 10 McAllen/Harlingen KNVO #1 6.1 12 Albuquerque KLUZ #1 2.3 14 San Diego KBNT #1 1.5 16 El Paso KINT #1 3.9 17 Orlando WVEN #2 tie 0.6 19 Tampa WVEA #1 1.7 20 Washington, D.C. WFDC #2 0.8 22 Las Vegas KINC #1 3.1 26 Corpus Christi KORO #2 2.1 33 Monterey KSMS #1 3.1 34 Laredo KLDO #1 8.8 35 Yuma/El Centro KVYE #1 tie 1.0 37 Palm Springs KVER #1 2.3 44 Santa Barbara KPMR #2 1.5 Source: NSI November 2007/July 2007/May2007/February 2007 average (ET/PT M-F 6pm-6:30pm, CT/MT M-F 5pm-5:30pm) DominatingDominating PrimePrime TimeTime Entravision’s Univision affiliates are #1 or #2 in prime time in 7 markets, beating the big 3 networks Fox, CW and MNT. Hispanic Prime Time Adult 18-34 DMA Station Market Rank Rank Rating 12 Albuquerque KLUZ #1 4.8 22 Las Vegas KINC #1 4.6 26 Corpus Christi KORO #2 3.6 33 Monterey KSMS #1 5.0 34 Laredo KLDO #2 3.0 37 Palm Springs KVER #1 4.7 44 Santa Barbara KPMR #1 3.4 Source: NSI November2007/July2007/May 2007/February 2007 average (Prime ET/PT M-F 7pm-10pm, CT/MT 6pm-9pm) TeleFuturaTeleFutura AffiliatesAffiliates inin KeyKey U.S.U.S. HispanicHispanic GrowthGrowth MarketsMarkets Boston Hartford Denver Washington, D.C. Las Monterey Vegas Palm Springs Santa Barbara Albuquerque San Diego Yuma- El Centro San Orlando El Paso Angelo Tampa Laredo Corpus Christi McAllen TelevisionTelevision RevenueRevenue GrowthGrowth OutperformingOutperforming thethe IndustryIndustry Television Revenue Growth (percentage) Industry 25 22% EVC 20 15 12% 12% 12% 10% 10 8% 8% 8% 8% 5 0 -1% -5 -2% -3% -6% -10 -9% -15 2001 2002 2003 2004 2005 2006 Q3 YTD 2007 Source: BMO Capital Markets, TVB, Deutsche Bank, Bernstein