Greetings, and welcome to the Entravision Communications Corporation First Quarter 2025 Earnings Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Roy Nir. Please go ahead.

Good afternoon, everyone. And welcome to Entravision Communications Corporation's first quarter 2025 earnings call. I am Roy Nir, Vice President of Financial Reporting and Investor Relations. Joining me today are Michael Christenson, our Chief Executive Officer, and Mark Boelke, our Chief Financial Officer. Before we begin, I would like to inform you that this call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision Communications Corporation's SEC filings for a list of risks and uncertainties that could impact actual results. The press release is available on the company's Investor Relations page and was filed with the SEC on Form 8-K. I will now turn the call over to Michael Christenson.

Thanks, Roy. And thank you to all of you for joining our call today. As Roy said, we are here to discuss our results for the first quarter of 2025, and we will be taking questions at the end of our remarks. As you saw in our press release, on a consolidated basis, we increased our revenue 17% to $91.9 million in 1Q 2025 compared to 1Q 2024. Excluding certain noncash accounting charges that Mark will discuss, we had an operating loss of $3.9 million in 1Q 2025. Our objective is to grow our business and earn a profit, so we acknowledge we have work to do to improve our operating performance. As you all know, we report our results for two segments: Media and Advertising Technology and Services, what we call ATS. For our media segment, our revenue declined 10% in 1Q 2025 compared to 1Q 2024. Some of our local advertisers reduced their ad spend in 1Q 2025 compared to 4Q 2024 and 1Q 2024. We had fewer active local advertisers in 1Q. The average spend per active local advertiser increased slightly, but this was not enough to offset the decrease in the number of active local advertisers. Our smaller advertisers pulled back more than our larger advertisers in 1Q. We saw similar results in our national business. What I can share with you on this call is that our revenue was lowest in January. February was better than January. March was better than February. And April was better than March. In terms of operating expenses and profitability, we are making a number of important investments in our media business in 2025. We are adding capacity to our local sales teams, more sellers, and we are adding digital sales specialists and digital sales operations capabilities so we can…

Thank you, Mike. Entravision Communications Corporation's business is to produce and distribute content and to sell advertising on video, audio, and digital media platforms. Our goals are to invest in our media business content, particularly local news production, invest in the technology driving our ad tech and services business, and increase our sales capacity in both our media and ad tech businesses. I'd like to start with a couple of comments about the presentation of our financial reporting. Over the past year, we have been undertaking initiatives to reorganize our business units and their management, sales, operations, and support teams in order to drive revenue, support our business units effectively and efficiently, and reduce expense. As a result of these initiatives, our financial reporting is organized into two operating segments, as Mike mentioned. The first operating segment is media, which is our business providing video, audio, and digital marketing services and advertising to local and national advertisers in the United States. The second operating segment is Advertising Technology and Services. This business provides programmatic advertising, technology, and services to advertisers and mobile app developers on a global basis. One additional comment is that during the second quarter of 2024, we completed the sale of our former global sales representation business, and as a result, financial results for this former business are reported in our financial statements as discontinued operations for the first quarter and prior periods. Let's start by reviewing revenue performance. On a consolidated basis, revenue for the first quarter was $91.9 million, up 17% compared to the first quarter of 2024. The increase was driven primarily by growth in our Ad Tech and Services segment, which grew revenue to $50.9 million in the first quarter, achieving revenue growth of 57% compared to the first quarter of 2024. Again,…

Thank you so much for that. And ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star button followed by the number one on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel the request, please press the star button followed by the number two. And if you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question.

Operator?

Hello? Again, should you wish to ask a question, please press the star button followed by the number one on your telephone keypad.

Operator, while we wait for any questions to come through, I'd like to review a written question that we received. The question is, how has Entravision Communications Corporation's business been impacted by recent changes in trade policy and tariffs?

I believe that's a common question being asked by companies these days.

Our business primarily consists of selling advertising services, which are not directly subject to tariffs. Media revenue is generated within the United States, and although our advertisers do include some manufacturers that could be impacted by tariffs, such as auto dealers or manufacturers, many advertisers are local services businesses that are not directly impacted by tariffs. That's largely for our media business. Our ad tech and services revenue is generated primarily in Europe and the Middle East, followed as well by Asia and the United States. And our clients in the ad tech and services business are primarily services businesses, largely mobile app providers, for companies in gaming, entertainment, social media, financial services, etcetera. And those businesses are not directly impacted by tariffs as a general matter. At this time, we have not changed any forecasts or strategic plans in response to changes in tariff or trade policies. Operator, I'll turn it back to you. Any additional questions?

Thank you so much for that, Mark. And since there are no further questions at this time, I'll be transferring the call over to Michael Christenson for our closing remarks.

Thank you all for joining us today. We look forward to seeing you and hearing from you again on our next quarterly results call. And in the meantime, as Mark mentioned, if there are any things that you'd like to discuss or questions that you have, you can connect with us through our investor relations website. We are happy to get back to you. Thank you.

This concludes today's call. Thank you for participating. You may now disconnect. Thank you so much, everyone.