Spanish-language ad-spending spike benefits broadcasters.Spanish-language advertising expenditures grew 6.1 percent in 2005, or more than double the rate of English-language ad spending, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report from TNS TNS transcutaneous neural stimulation. Media Intelligence. The figure comes as good news to Los Angeles-based Univision Communications and Entravision Communications, two of the largest Spanish broadcasters in the country. For fiscal year 2005, Univision reported a 9.2 percent increase in net revenues. Nearly 60 percent of the new revenues came from TV, which accounts for about 70 percent of the company's revenue base. The company's other divisions include radio, Internet, and music. The announcement in February that Univision's board had "decided to begin a process to explore strategic alternatives to enhance shareholder value" has set the stage for competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. by acquisitive media conglomerates A Conglomerate is the term used to describe a large corporation that consists of diverse divisions. Conglomerate companies tend to be large multinational corporations with operations in multiple regions of the world. , although the announcement had no time line or promise of an eventual sale. However, in the company's final earning release for 2005, chairman A. Jerrold Perenchio referred to the positive ad market in saying the company's "strong momentum and positive growth prospects, the scarcity value scarcity value n → valor m de escasez scarcity value n → valeur f de rareté scarcity value n → of our assets, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions and increasing interest in Spanish-language media, led us to conclude that now was the fight time to evaluate our options for maximizing shareholder value." Entravision owns 48 TV stations and 52 radio stations, mostly Univision affiliates The following lists the current affiliates of the Spanish-language television network Univision, in alphabetical order of the markets they serve: Market Station Ownership Albuquerque, NM KLUZ 41 Entravision Amarillo, TX KEYU Equity Broadcasting , making the company dependent on Univision's fortunes. Entravision also owns Vista Media, a Hispanic-focused billboard company. Entravision reported revenue growth of 8 percent during calendar 2005. "We are benefiting from a vibrant Hispanic market that continues to expand in terms of population, purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. , and importance to advertisers," declared Chairman Walter Ulloa in the company's fourth-quarter 2005 earnings announcement, adding that "these trends are fueling our growth." Total Spanish-language media spending in 2005 was $4.2 billion, according to the TNS report. By comparison, English-language media spending came to $143 billion, with a 3 percent annual growth rate. Fast-growth segments included Internet ads (13 percent), cable TV (11 percent), outdoor (9.8 percent), and Sunday magazines (8.2 percent). Spot TV registered the largest percentage decline at -9.5 percent. For 2006, TNS predicts Spanish-language network television spending will increase 10 percent, the best growth rate of any medium. Entravision guidance indicates first-quarter revenue growth of "mid single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. percentages." Univision expects high single-digit growth for its divisions except for music, where growth has slowed. But overall, chief financial officer Andrew Hobson projects "continued strong operating performance in 2006 due to our competitive positioning, increased commitment by advertisers to Hispanic audiences and our upcoming World Cup coverage." JOEL RUSSELL Staff Reporter |
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