Entravision Communications (EVC) risk factors, FY2024 10-K

Other

1. 01We operate in highly competitive industries subject to changing technologies, and we may not be able to compete successfully
2. 02We do not have long-term commitments from our advertisers, and we may not be able to retain or attract new advertisers
3. 03While our revenue is variable based on many factors, many of our operating expenses are fixed
4. 04Our business is exposed to risks associated with the creditworthiness of our key advertisers and other strategic business partners
5. 05We are a party to various retransmission consent agreements that may be terminated or not extended following their current termination dates
6. 06Retransmission consent revenue may decline
7. 07Changes in the competitive landscape or technology may impact our ability to monetize our spectrum assets
8. 08We face declining audiences in our television and audio operations
9. 09Our emphasis on enhancing our local news programming as a means to increase advertising revenue may not produce the results we hope
10. 10If our network affiliation and/or other contractual relationships with broadcast networks, including but not limited to TelevisaUnivision, terminate or otherwise change in an adverse manner, it could negatively affect our television ratings, business, results of operations and financial condition
11. 11TelevisaUnivision’s ownership of our Class U common stock may make some transactions difficult or impossible to complete without TelevisaUnivision’s consent
12. 12If we fail to maintain and grow our relationships with our advertisers, our business, results of operations and financial condition could be adversely affected
13. 13The amount, quality, type and cost of advertising inventory available through Smadex and Adwake are subject to fluctuation. Any decrease in the availability of advertising inventory could reduce the services we offer to advertisers and decrease the perceived value or effectiveness of those services
14. 14New and existing technologies and changes in third party platforms that modify the digital advertising marketplace and how advertising is conducted online could have a material adverse effect on our business and results of operations
15. 15If we fail to respond to changes in the digital advertising industry, our business may become less competitive
16. 16We compete with media companies themselves, as well as with other digital advertising companies
17. 17Our systems and IT infrastructure may be subject to security breaches and other cybersecurity incidents
18. 18Our international operations subject us to significant costs and risks
19. 19We may be exposed to certain risks enforcing our legal rights generally in some of the countries in which we operate
20. 20The technology on which we rely may not be protectable, which could result in competition from others who may utilize the same, or similar technology
21. 21In the past we have experienced, and we may in the future experience, difficulty establishing adequate management and financial controls in some of the countries in which we operate

Financial Risks

1. 22Our substantial level of debt could limit our ability to grow and compete
2. 23The 2023 Credit Agreement contains various covenants that limit management’s discretion in the operation of our business
3. 24enter into certain transactions with affiliates
4. 25The 2023 Credit Agreement contains various financial covenants. Our failure to meet these covenants would constitute an event of default under the 2023 Credit Agreement
5. 26financial condition, performance, operating results and liquidity, we may not maintain compliance with the financial covenants in the 2023 Credit Agreement
6. 27We may need to raise capital if our current liquidity is insufficient to fund business activities. If we cannot raise such on favorable terms or at all, we may have to reduce or curtail certain existing operations
7. 28We expect to experience fluctuations in foreign exchange rates in our overseas operations

Regulatory Risks

1. 29If we cannot renew our FCC broadcast licenses, our broadcast operations would be impaired, which could have a material and adverse effect on our business, results of operations and financial condition
2. 30We are subject to extensive additional regulation by the FCC in our television and radio operations
3. 31Legislation and regulation of the digital advertising business, including privacy and data protection regimes, could create unexpected costs, subject us to enforcement actions for compliance failures, or cause us to change our business model
4. 32We are subject to new and rapidly evolving legislation and/or regulations, as well as industry standards and consumer preferences, in respect of protection of personal and similar data and any failure by us to comply with these regulations could result in loss of business, reputation and/or fines
5. 33Measures we take to protect PII and other confidential information, as required by the laws and regulations to which we are subject, may not be effective, and could expose us to significant liability
6. 34We must comply with the Foreign Corrupt Practices Act