Entravision Communications (NYSE:EVC) stock is falling on Wednesday with the release of the advertising, media, and technology solutions company’s fourth quarter 2023 earnings report.
In that earnings report, Entravision Communications provides investors with an update on its partnership with Meta Platforms (NASDAQ:META). The big news here is that Meta is winding down its Authorized Sales Partner (ASP) program.
This has Meta intending to end its partnership with all ASPs by July 1, 2024. That includes Entravision Communications. For the record, the company estimates that $23.8 million of its $57.7 million consolidated EBITDA and $586.4 million of its $1.11 billion in revenue in 2023 came from the Meta ASP partnership.
Entravision Communications CEO Michael Christenson said the following about the Meta news in the earnings report:
“While we are disappointed in Meta’s decision, we are confident in Entravision’s long-term opportunities given the strength of our advertising and marketing platforms and the need for our solutions globally. We are conducting an extensive review of our strategy and cost structure to reinforce our operating foundation and ensure we are best positioned to capitalize on Entravision’s global, market leading advertising, media and technology solutions.”
How This Affects EVC Stock Today
News of Meta ending its partnership with the company has investors fleeing EVC stock today. That has more than 1.5 million shares changing hands as compared to its daily average of about 268,000 shares.
EVC stock is down 46.5% as of Wednesday morning and was down 11.6% year-to-date when markets closed yesterday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
