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Segment Data
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Data

19. SEGMENT DATA

In the Company's former EGP business, it acted as an intermediary between primarily global media companies and advertisers, which consisted of either the enterprise or its ad agency running the advertisement. The Company's customers were both these primarily global media companies and advertisers. On March 4, 2024, the Company received a communication from Meta that it intended to wind down its ASP program globally and end its relationship with all of its ASPs, including the Company's, by July 1, 2024. As a result of this communication from Meta, the Company's CEO, who is also the CODM, led a thorough review of the Company's operations, cost structure, digital strategy and organization of its business. This review led to the decision to sell the enterprises comprising the Company's EGP business -- the largest business unit of what was then its digital segment. Following this decision, during the second quarter of 2024, the Company entered into a definitive agreement to sell substantially all of its EGP business to IMS. The transaction was completed on June 28, 2024. The remaining parts of the Company's EGP business, Jack of Digital and Adsmurai, were each sold back to their respective founders in separate transactions during the second quarter of 2024.

Prior to the sale of the EGP business, for financial reporting purposes the Company reported in three segments – digital, television and audio, based on the type of medium in which it sold advertising. The sale of the EGP business has allowed the Company to focus its operations on the products and services it sells instead of the type of advertising medium in which it sells them, which had been the Company's historic operational approach. As a result of the sale of the Company's EGP business, effective July 1, 2024, the Company has realigned its operating segments into two segments – media and advertising technology & services – consistent with the Company's current operational and management structure, as well as the basis that is now used for internal management reporting and how the Company's CEO evaluates the business. The Company's reportable segments are the same as its operating segments. Prior periods have been recast to conform to this presentation.

The Company's media segment consists of sales of advertising through various media, including television, radio and digital. The Company owns and/or operates 49 primary television stations and 44 radio stations (37 FM and 7 AM), reaching and engaging Latinos in the United States. The Company's television operations comprise the largest affiliate group of both the top-ranked Univision television network and TelevisaUnivision’s UniMás network, with TelevisaUnivision-affiliated stations in 15 of the nation’s top 50 U.S. Latino markets. The Company owns and operate one of the largest groups of primarily Spanish-language radio stations in the United States. The Company provides digital marketing solutions in all of the U.S. markets where it has broadcast operations.

The Company's advertising technology & services segment consists of programmatic ad services through Smadex, its demand side programmatic ad platform, and Adwake, its mobile growth solutions business.

Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. The Company generated 25%, 27% and 24% and of its revenue from continuing operations outside the United States during the years ended December 31, 2024, 2023 and 2022, respectively (see Note 5).

The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands):

 

 

 

Year Ended December 31,

 

 

% Change

 

 

% Change

 

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

 

2024 to 2023

 

 

2023 to 2022

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

$

222,061

 

 

$

196,268

 

 

$

230,698

 

 

 

13

%

 

 

(15

)%

Advertising Technology & Services

 

 

142,887

 

 

 

100,775

 

 

 

93,292

 

 

 

42

%

 

 

8

%

Consolidated

 

 

364,948

 

 

 

297,043

 

 

 

323,990

 

 

 

23

%

 

 

(8

)%

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

16,726

 

 

 

10,952

 

 

 

10,580

 

 

 

53

%

 

 

4

%

Advertising Technology & Services

 

 

85,470

 

 

 

66,262

 

 

 

60,006

 

 

 

29

%

 

 

10

%

Consolidated

 

 

102,196

 

 

 

77,214

 

 

 

70,586

 

 

 

32

%

 

 

9

%

Direct operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

110,988

 

 

 

96,925

 

 

 

94,742

 

 

 

15

%

 

 

2

%

Advertising Technology & Services

 

 

25,274

 

 

 

16,306

 

 

 

14,578

 

 

 

55

%

 

 

12

%

Consolidated

 

 

136,262

 

 

 

113,231

 

 

 

109,320

 

 

 

20

%

 

 

4

%

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

42,759

 

 

 

36,000

 

 

 

36,327

 

 

 

19

%

 

 

(1

)%

Advertising Technology & Services

 

 

20,109

 

 

 

13,761

 

 

 

10,661

 

 

 

46

%

 

 

29

%

Consolidated

 

 

62,868

 

 

 

49,761

 

 

 

46,988

 

 

 

26

%

 

 

6

%

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

12,891

 

 

 

11,975

 

 

 

13,661

 

 

 

8

%

 

 

(12

)%

Advertising Technology & Services

 

 

3,930

 

 

 

4,417

 

 

 

1,986

 

 

 

(11

)%

 

 

122

%

Consolidated

 

 

16,821

 

 

 

16,392

 

 

 

15,647

 

 

 

3

%

 

 

5

%

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

38,697

 

 

 

40,416

 

 

 

75,388

 

 

 

(4

)%

 

 

(46

)%

Advertising Technology & Services

 

 

8,104

 

 

 

29

 

 

 

6,061

 

 

*

 

 

 

(100

)%

Consolidated

 

 

46,801

 

 

 

40,445

 

 

 

81,449

 

 

 

16

%

 

 

(50

)%

Corporate expenses

 

 

37,498

 

 

 

50,294

 

 

 

49,404

 

 

 

(25

)%

 

 

2

%

Change in fair value of contingent consideration

 

 

(629

)

 

 

821

 

 

 

(1,800

)

 

*

 

 

*

 

Impairment charge

 

 

61,220

 

 

 

13,267

 

 

 

1,600

 

 

 

361

%

 

 

729

%

Foreign currency (gain) loss

 

 

692

 

 

 

1,950

 

 

 

1,244

 

 

 

(65

)%

 

 

57

%

Other operating (gain) loss

 

 

-

 

 

 

609

 

 

 

423

 

 

 

(100

)%

 

 

44

%

Operating income (loss)

 

 

(51,980

)

 

 

(26,496

)

 

 

30,578

 

 

 

96

%

 

 

(187

)%

Interest expense

 

 

(16,472

)

 

 

(16,833

)

 

 

(10,536

)

 

 

(2

)%

 

 

60

%

Interest income

 

 

2,458

 

 

 

3,405

 

 

 

2,740

 

 

 

(28

)%

 

 

24

%

Dividend income

 

 

10

 

 

 

35

 

 

 

20

 

 

 

(71

)%

 

 

75

%

Realized gain (loss) on marketable securities

 

 

(110

)

 

 

(93

)

 

 

(532

)

 

 

18

%

 

 

(83

)%

Gain (loss) on debt extinguishment

 

 

(91

)

 

 

(1,556

)

 

 

-

 

 

 

(94

)%

 

*

 

Income (loss) before income taxes from continuing operations

 

$

(66,185

)

 

$

(41,538

)

 

$

22,270

 

 

 

59

%

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

$

7,089

 

 

$

21,208

 

 

$

6,975

 

 

 

 

 

 

 

Advertising Technology & Services

 

 

372

 

 

 

3,643

 

 

 

2,538

 

 

 

 

 

 

 

Consolidated

 

$

7,461

 

 

$

24,851

 

 

$

9,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Percentage not meaningful.

Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources.