Entravision Communications (EVC) risk factors, FY2025 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 intended results
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 condition52% rewritten
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 use of certain third party platforms could be restrictedNew
18. 18Our systems and IT infrastructure may be subject to security breaches and other cybersecurity incidents
19. 19Our use of AI technologies may increase our cybersecurity risks and harm our businessNew
20. 20Our international operations subject us to significant costs and risks
21. 21We may be exposed to certain risks enforcing our legal rights generally in some of the countries in which we operate33% rewritten
22. 22Our single largest current customer is located in Hong Kong. We face certain risks doing business in Hong Kong and China, including the fact that our ability to enforce our rights in Hong Kong and China, should it be necessary, may be limitedNew
23. 23Our ATS business is subject to various risks associated with the mobile gaming industryNew
24. 24Our customers must also utilize effective marketing strategies for games; expand and enhance games after their initial release; attract experienced game designers, product managers and engineers; and adapt to an increasingly diverse set of new mobile devices as they emergeNew
25. 25The technology on which we rely may not be protectable, which could result in competition from others who may utilize the same, or similar technology
26. 26In 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. 27Our substantial level of debt could limit our ability to grow and compete
2. 28The Amended Credit Agreement contains various covenants that limit management’s discretion in the operation of our business
3. 29enter into certain transactions with affiliates25% rewritten
4. 30The Amended Credit Agreement contains various financial covenants. Our failure to meet these covenants would constitute an event of default thereunder92% rewritten
5. 31We 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
6. 32We expect to experience fluctuations in foreign exchange rates in our overseas operations23% rewritten

Regulatory Risks

1. 33If 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. 34We are subject to extensive additional regulation by the FCC in our television and radio operations
3. 35Legislation 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. 36We 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 fines40% rewritten
5. 37advertising, including makers of devices that display digital media, providers of digital media, operating system providers, third party networks and providers of internet-connected devices and related servicesNew
6. 38Development of new product offerings may subject us to new legislation and/or regulations, as well as industry standards, in respect of data privacy and consumer protection and any failure by us to comply with these regulations could result in loss of business, reputation and/or finesNew
7. 39Measures 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
8. 40We must comply with the Foreign Corrupt Practices Act