Entravision Communications Corp (EVC) 2016 Q1 法說會逐字稿

Good day and welcome to the Entravision First Quarter 2016 Earnings Call and Webcast. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Walter Ulloa, Chairman and Chief Executive Officer. Please go ahead.

Thank you, Kerry and good afternoon, everyone and welcome to Entravision's first quarter 2016 earnings conference call. And joining me today on the call is Chris Young, our Executive Vice President and Chief Financial Officer.

Before we begin, I must inform you this conference call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to our SEC filings for a list of risks and uncertainties that could impact actual results. This call is a property of Entravision Communications Corporation. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Entravision Communications Corporation is strictly prohibited.

Also, this call will include non-GAAP financial measures. The Company has provided a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures in today's press release. The press release is available on the Company's website and it was filed with the SEC on Form 8-K.

Moving onto our review of the first quarter. Overall, we had a good start of the year as we continued to make progress, executing a multi-platform strategy. While our overall performance impacted by non-advertising revenues we generated during the prior year period, on a core basis we delivered revenue growth across our audio and television station groups. We also continued to generate strong digital revenue growth as we capitalized on our unique collection of digital assets and capabilities. Our audience reach across all major platforms continues to increase, as we remain focused on transforming Entravision into a leading multi-platform media company across all acculturation levels. Our audio and television assets are well-positioned across the nation's most densely populated Latino markets. Today, we deliver advertisers with the largest Latino audience spanning all major platforms, including online and via mobile devices. We also continue to return capital to shareholders via our quarterly dividend.

Looking now at specific results, first quarter consolidated revenue was $58.1 million, a decrease of 2% compared to last year. Our reported revenues were impacted by $5 million in non-advertising revenue related to a channel modification we made to accommodate a telecom operator in the year-ago period. Excluding this non-advertising revenue, total revenues on a consolidated basis increased 7% during the first quarter. Consolidated adjusted EBITDA was $12.6 million in the quarter compared to $16.8 million last year. The decrease is primarily related to non-advertising revenues previously mentioned.

And turning to our TV segment operating highlights, television revenue decreased 7% during the first quarter, again due to the impact of non-advertising revenue in the prior-year period. Excluding non-advertising revenue, television revenues increased 6% in the first quarter. National revenue was up 14% while local revenue was down 2%. Retransmission revenues increased 16% during the quarter. Excluding the impact of non-advertising revenue, political and retransmission revenues, core television advertising revenues were up 2% with core national advertising revenue up 9%, while core local revenue was down 4% during the first quarter.

The automotive category continues to be a strong contributor to our television advertising revenue growth. Automotive was up 13% in the first quarter driven by double-digit increases by Nissan, Ford and Honda. Auto tier growth was double-digits in tier 1 and tier 2. Beyond auto, we generated advertising revenue growth across several other categories, including legal services up 8%, restaurants up 3%, media up 4%, finance up 11% and political, which represented approximately $726,000 in television revenue for the quarter. During the first quarter, we continued to expand our roster of television advertising partners. We added 52 new television advertisers, who spent more than $10,000, which totaled approximately $1.2 million in advertising revenue. These new advertisers include companies and brands such as Brightwood College, Hillary for America and American Electric Power.

Turning to our ratings performance, our Univision television affiliates built up their market leadership in the February 2016 sweeps. For adults 18 to 49 in early local news, our Univision television stations finished ahead of their Telemundo competitor in all of our markets except one, where we tied. Additionally, our early local newscasts are ranked number 1 or 2 against English and Spanish competitors in 10 markets.

During the full week, our Univision, UniMas television stations combined have a cumulative audience of 3.1 million Hispanic in our markets combined compared to Telemundo's 1.9 million Hispanics. We have 60% more viewers than Telemundo in our Univision television affiliate footprint and our reach is up 2% over the same period last year. During weekday prime time when comparing all stations in total adults 18 to 49, we had higher ratings on one of the big four networks in 11 of our markets.

Turning to our audio division. Revenue increased 3% in the first quarter with local up 2% and national up 6%. Excluding political revenues, our audio division increased revenue by 2% with core local revenue up 2% and our core national up 4%. This marks the sixth consecutive quarter where Entravision has outperformed the broader audio industry. Based on Miller Kaplan estimates for the 12 markets which we subscribe, the industry saw an increase of 2% during the first quarter of 2016. Entravision Solutions audio network revenues increased 16% during the first quarter compared to the first quarter of last year. Growth was driven by Home Depot, O'Reilly Auto Parts, AT&T Mobility and Wells Fargo, as well as new advertisers including NBCUniversal, T-Mobile, Volkswagen and GM Chevy. While our overall audio network grew 16%, our syndication sales for the Erazno show grew a whopping 83% in the quarter.

Our Entravision Solutions audio network continues to benefit from our strong content offerings which include Oswaldo Diaz also known as Erazno y la Chokolata, Alex El Genio Lucas and Eduardo Piolin Sotelo, the top Spanish language talents working in the industry today, continued to be heard, streamed, followed and connected across Entravision's media properties. The power of our Entravision Solutions network continues to attract advertising dollars.

In the first quarter, we had 36 Entravision Solution network advertisers. This was an increase of 6% compared to the prior year. On the Erazno show, we had 21 active national advertisers representing a 31% increase over the prior year. Our audio division recorded revenue growth in five of our top 10 categories in the first quarter including automotive which was up 27% in the quarter. The strong performance in automotive was driven by Toyota, Nissan and General Motors. Other advertising categories that showed strong growth in the first quarter were legal services up 24%, auto up 19% and political which represented $248,000 in revenue for the quarter.

Similar to our television business, we continue to expand our base of advertising partners. During the first quarter, we had 33 new audio advertisers who spend more than $10,000, which generated approximately [$682,000] in incremental advertising revenues. Notable new advertisers included [Buy Now Insurance], The Dominguez Firm, Hillary for America, [Geoffrey Lopez & Associates] and Rent-A-Center.

Turning to Los Angeles, which remains our largest audio market, our LA revenue was up 2% in the quarter and was in line with the overall market, which also finished [N plus 2] based on Miller Kaplan. KLYY continues to be a top ranked LA radio station delivering a number of key demos. For the most recent [three book] Nielsen survey against the coveted 18 to 49 demo, KLYY delivered the Number 1 afternoon drive show with Erazno y la Chokolata and the Number 4 drive show with Alex El Genio Lucas, and this is regardless of language against all Los Angeles radio competitors.

Now, let's move onto our digital business. Digital revenues increased an impressive 26% to $4.7 million in the first quarter. Digital revenue now accounted for approximately 8% of our total revenue during the first quarter. We continued to generate strong digital revenue growth due to our unique combination of assets and capabilities, which included Pulpo and Luminar as well as our strong content offering and reach.

During the first quarter, we added several new brands to our digital clients such as Wendy's, H&R Block, [LOL], Southwest Airlines, Aquaphor and Florida Lottery among others. In comparison to first quarter last year, we grew in almost every quarter. Automotive grew 16%, entertainment 12%, consumer goods 26%, retail 64% and travel 100%.

Our digital platform continues to deliver the largest digital US Latino reach to advertisers. Our unmatched reach is driven by Pulpo, which targets Latino station-wide across all devices and platforms and then leverages Luminar's Big Data programmatic targeting and yield optimization tools. This is strengthened by our focus on mobile-centric offerings, our growing social media following as well as our commitment to delivering compelling content across all media platforms, including our owned and operated websites.

According to comScore, Pulpo's desktop reach among Spanish dominant Latinos is over 7 million unique users, which represents 23% of online Latinos. This accounts for over 205 million monthly viewed pages. Our Pulpo, by culture reach is even greater with over 16 million unique users, which represents 52% of online Latino's. This accounts for over 560 million monthly viewed pages. Our audience delivery spans all key demographics as well as Spanish-dominant bicultural or English-dominant Latinos. Entravision today delivers US Latino market across all acculturation levels. For perspective, comScore continues to rank Pulpo, the Number 1 ranked digital platform, reaching Latinos in United States while our websites deliver over 2.2 million monthly unique visitors.

We published over 11,000 local new stories and videos across our digital properties in the first quarter, while streaming over 5 million hours of audio entertainment to over 2 million unique listeners on our O&O digital network. The majority of our audience continues to engage with our content via mobile devices. The high mobile usage rate among our audience continues to drive strategic investments in our mobile app offerings and mobile-first websites. Our digital teams remain hard at work, developing apps and mobile-first websites associated with our leading content personalities including Alex El Genio Lucas, the LM Show and Show de Piolin.

As you might recall, in January, we launched Erazno y La Chokolata. The response to the app continues to be very strong. And to-date, the app has been downloaded 145,000 times with nearly 100,000 active monthly users and achieving conversion rates as high as 25%. In addition, we remain on track to launch El Genio Lucas' new mobile-first website during the current quarter.

Turning now to social media where we continue to grow our engagement metrics, we currently have over 6.5 million social media followers across key networks, including Facebook, Twitter and Instagram. Lastly, mobile remains our fastest-growing revenue stream today and contributes 28% of our total digital revenues. We expanded our mobile reach and offerings given to Latinos continue to over-index in mobile ownership and media consumption.

According to comScore, we have surpassed 13 million unique Spanish-dominant Latinos for mobile devices and 27 million unique bicultural Latinos through mobile devices to our Pulpo digital network. Mobile offerings also include our text and MMS operations. In the first quarter, we sent over 1.9 million text messages, and our overall usage levels continues to increase. This has led to a steady increase in number of MMS texts sent, which represented roughly 54% of our total text messages in the first quarter.

Now, let's take a look at our pacings for the first quarter. Our television advertising revenue is currently pacing in the positive high-single digits versus the second quarter of last year. Our audio advertising revenue is currently pacing in the negative low-single digits compared to the year's second quarter, but we are seeing momentum building as we move through the quarter. Digital revenues are currently pacing at approximately 50% above bookings at this point in the second quarter of last year. We should also note that all of this pace detail is core advertising as we are yet to book any material political revenue thus far in the second quarter.

In summary, the first quarter was a good start to the year and we are on track to achieve our full year goals. We generated core advertising growth across our television and audio station groups, which continue to outperform the broader industry and our Spanish language peers. Our digital revenues continue to rapidly grow and we are making further progress expanding our online and mobile capabilities and offerings. We remain well positioned across all media platforms and our overall audience reach continues to grow.

Finally, we remain enthusiastic about the 2016 political year. Our media assets are well positioned across key swing states including Florida, Colorado, Nevada, New Mexico and Virginia, at a time when Latino population continues to grow in number and most importantly in influence. We continue to anticipate impressive political revenue increase versus 2012 and presently we expect more than 85% of our political revenue for the year to be placed in the second half of the current presidential election cycle. While the political investment cycles have yet to show consistent patterns of growth in each presidential cycle, our total Q1 political revenue generation of approximately $1 million was 10 times more than 2012 generated from a cross-section of local, state, national (inaudible) campaigns including Trump for President on our English language Fox stations.

At this time, I'll turn the call over to Chris Young, our Chief Financial Officer for a review of our financial information.

Thank you, Walter and good afternoon, everyone.

As Walter has discussed, net revenue for the quarter was down 2% at $58.1 million compared to $59.6 million in the same quarter of last year. Operating expenses increased 5% to $39 million, consolidated adjusted EBITDA was $12.6 million. During the first quarter of 2016, the Company paid a cash dividend of $0.03125 per share to shareholders of the Company's Class A, Class B and Class U common stock. The total amount of cash disbursed with the dividend was $2.8 million. The Company also announced today that the Board of Directors has declared a quarterly cash dividend of $0.03125 per share to shareholders of the Company's common stock payable on June 30, 2016. The total amount of cash to be disbursed with this quarterly dividend will be approximately $2.8 million. As previously announced, we currently anticipate making cash dividends on a quarterly basis in future periods.

For the quarter, TV net revenue was down 7% to $36.6 million compared to $39.5 million in the same quarter of last year. The decrease in our TV segment revenue was primarily attributable to approximately $5 million of revenue associated with TV station channel modifications made by the Company in order to accommodate the operations of a telecommunications operator included in the first quarter of 2015, which did not recur in the first quarter of 2016. Excluding the $5 million associated with station channel modification, our total television advertising revenues were up 4% for the first quarter compared to the first quarter of last year. Excluding political, core TV advertising revenues were up 2% compared to last year. Retransmission consent revenue for the quarter was $7.4 million compared to $6.4 million in the same quarter of last year.

Radio net revenue for the quarter was up 3% to $16.9 million compared to $16.3 million in the same quarter of last year. The increase in our radio segment was primarily attributable to increases in local and national advertising, and an increase in political advertising revenue, which was not material in 2015. Excluding political, core radio revenues were up 2% compared to the first quarter of last year.

Digital net revenue for the quarter was up 26% to $4.7 million compared to $3.7 million in the same quarter of last year. The increase in our digital segment was primarily attributable to increases in national and local advertising revenue.

Operating expenses for the quarter were $39 million, up 5%. TV operating expenses excluding non-cash compensation expense were up 4% at $20.4 million. Radio operating expenses excluding non-cash compensation expense were up 7% at $15.7 million, primarily due to higher talent costs. Digital operating expenses excluding non-cash compensation expense were up 1% at $2.6 million. Corporate expenses for the quarter were up 12% to $5.6 million compared to $5 million in the same quarter of last year. Excluding non-cash compensation expense, corporate expenses for the quarter were $5 million versus $4.5 million in the same quarter of last year, an increase of 11%. Excluding non-cash compensation expense, the increase in corporate expenses were primarily due to an increase in salary expense.

Income tax expense was $1.5 million for the quarter while cash taxes paid was $200,000. Given the elimination of our full valuation allowance in the fourth quarter of [2013], future income tax expense will run at approximately 40% of pre-tax income, although most of this expense will continue to be non-cash, given our NOL offsets.

Earnings per share for the quarter were $0.03 per share compared to $0.06 per share in the first quarter of last year. Free cash flow as defined in our earnings release decreased 36% to $6.6 million or $0.07 per share for the quarter compared to $10.3 million or $0.12 per share in the same quarter of last year. Cash interest expense for the quarter was $3.7 million compared to $3 million in the same quarter of last year due to the interest rate swap agreement that went into effect in January this year. Cash capital expenditures for the quarter were $2.1 million. Capital expenditures for 2016 are expected to be approximately $10.5 million.

Turning to our balance sheet, as of March 31, 2016, our total debt was $315.6 million and our trailing 12-month consolidated adjusted EBITDA was $72.1 million. Cash and cash-like securities on the books was $53 million as of 03/31/2016. Net of $20 million of unrestricted cash on the books, our total leverage as defined in our 2013 credit agreement was 4.1 times as of 03/31/2016.

This concludes our formal remarks. Walter and I will now be happy to take your questions. Kerry, I'll turn it over to you.

(Operator Instructions)

James Dix, Wedbush Securities.

I had a few. I guess first just as you looked at your growth through the quarter in the first quarter and then as you look forward in your pacing any month-to-month trends that you would call out, I think you -- Walter, you might have indicated that there was some strengthening that you were seeing in the second quarter for some of your business, but I think that would be interesting.

And then just one other one on advertising. Just regarding TV, do you have a sense that events are becoming any more or less incremental to the advertising you would otherwise get? I'm just thinking about the fact in Spanish language more of the regular programing tends to be consumed live anyway, whereas in English sometimes it's really events which are necessary to drive that live viewing and whether you increment the -- any results in terms of the incrementality of the revenue you get from events because of that?

About growth or category growth, I mean, automotive continues to stand out for us as a strong category that we saw important growth from in Q1 and we're seeing strong growth in Q2 as well. So that continues to do well. I mentioned also that legal services were growing for us for our television group and I also said that restaurants were up, media, finance and we did see some political as well. For radio, again, automotive was a strong category, and then other categories were legal services, as I mentioned earlier, auto repair, political. So that's -- and national continues to perform better than local in general. And that's a good metric to see, because last year, national started out rather slowly. This year, it has more momentum and we see momentum building, like I said, our television business is pacing high-single digits. Our radio -- for Q2, our radio is negative low-single digits, but we are seeing momentum build here as we move through the quarter, so, which gives us confidence. So, we're going to continue to build in a positive direction. And then, of course, our digital business is off the charts for second quarter in terms of pace.

As far as events are concerned, I mean, we do a number of events across our markets, probably 200 events. The biggest one we do, of course, is Reventon, here in Los Angeles, big concert that we do every year. But I would say that the events probably have a bigger impact on our radio business than they do our television business. But clearly, they are becoming more important, I believe to every media company as a way to engage with their audiences to create more brand loyalty, and also to create more digital engagement with our audiences. So that's my comment on that.

James, just a follow-up on Walter's thoughts. We saw in the first quarter, what we're seeing for the second quarter in that the first month of the quarter being April is the little water mark as far as the pace is concerned. Then it builds in May and it builds in further on top of that in June. So directionally, things seem to be moving correctly for a better way of putting, we saw the same thing in Q1. It started out, we can generate build up through March, seeing that same kind of reloading in the second quarter.

And that's for both TV and radio?

That's correct.

That building, okay. And then, just two follow-ups, one maybe, this is also for you, Chris. Just with one quarter under your belt, any views on the operating expense growth that we should be expecting this year? And in particular, any seasonality, perhaps related to either cycling of talent contracts or events or maybe even election news coverage that we should be thinking out? And then my last -- I'll do that one last one on the offline.

To your point, we are looking at a political year and there will be some news investment and political cover driving TV expense and to our comments about the first quarter, you're going to see probably the same impact on our content renewal for the second quarter and throughout the year where you're going to have content representing about an additional 2 points to 3 points in operating expense for the radio segment for the balance of the year.

And then my last one was just on the auction. I was just wondering if you could give a little color on the process as you understand it coming up and then how much it might affect the kind of senior management's time, priorities, especially as we approach and actually go through the actual bidding. I don't know how long you expect that to occur in terms of days or whatever. I am just curious as to how you think that's going to affect your time allocation as we go through the process.

We can't talk much about the auction other than just confirm that the auction date will start at the end of May. That's set, and as far as time is concerned, we've got a team that's already on top of that. So everyone else is going to be attending to their blocking and tackling, but the auction team that we've got in place is going to be obviously very, very dedicated to the process and that's a whole separate silo from the ongoing operations here.

Michael Kupinski, Noble Financial.

First of all, I will go back to the operating expenses, it seems like as a percent of sales, operating expenses are probably the highest I think I've ever seen in going back to 2012 or so. Can you kind of flush out what your thoughts are in terms of the expenses and I guess what do we look for in terms of expenses being as a percent of revenues, because if I look back to like 2012, the last cycle, I think operating expenses were like roughly 58% of revenues. And I think, and if I calculate this correct and the first quarter was almost 70%.

Michael, the two drivers, I'll just spend a little more time on what's driving the expense. For television, what we're trying to do is bolster up our local news operations across the country. The marketplaces have become more competitive. We've got competitors now that are multi competitors in markets and in order to maintain your leadership status, you've got to invest in people and operations and that's one of the drivers there for TV, it's the primary driver.

You've also got a couple of conventions that we're going to be investing in as far as coverage is concerned, and that's kind of a one-off situation where we're in an election year and we want to be on top of the issues and that's just part of running the business. First radio is concerned, radio, the content is really what drives ratings and we see this more as a long-term investment rather than a quarter-to-quarter investment. We think of the -- eventually the revenues are going to justify the increased expense, because we're looking at it more as an investment, we are building out our syndication portfolio as we speak a platform and in order to be able to do that successfully you've got to have content that works and this is part of that strategy.

And then in terms of, Univision is kind of saying that they're now planning the IPO and of course has been delayed many times, but can you add any color in terms of your negotiations whether it'd be just for your proxy agreement or now doesn't include the master affiliation agreement, what's holding it up at this point you think?

I don't know if there is anything holding it up per se, it's just a long drawn out conversation back and forth that we're having, it's just ongoing. And there are complexities in there, that we're trying to cover and the process continues.

And in terms of your radio revenue trends, they significantly moderated in the quarter. I guess, you're probably cycling through the benefit from your personalities. Has the Company been able successful in syndicating the network programing that you have?

We have, I mean remember we've been talking about the content now for the better part well, for the past 12 months. And one of our bigger deals out there is the deal that we did with Univision, where Univision is syndicating our content on the radio station. We are pleased to do a deal like that and we're looking for more deals like that as we go forward, you have to have the content to do that right?

As far as the comps are concerned just be reminded you've got -- Q1 of last year, our radio was up plus 10 as far as -- the plus 10 is our comp for Q1 and then Q2, it was still a plus 5 against our plus 10, but still the comps are getting tougher as we get into this year and we're working against those but we're doing what we can to keep the momentum going.

And some of the broadcasters have been saying that they've already seen some political advertising being booked in the third and fourth quarters. Are you seeing any visibility in the political advertising in the second half already?

No we haven't, Michael. Not anything material in the second -- I should say in the second quarter. To your question about the second half, yes we did. We have seen some rather significant orders come in this week that are -- they've been directed at third and fourth quarters of the year. So, and like we said earlier, we'll probably see 75% to 85% of all the political revenue come in the second half of the year.

And I would just say that congratulations on your Pulpo acquisition. I mean, wow in terms of digital growth, that's great. I guess in terms of that growth and looking forward, can you talk about the nature of the investments you might need to support that growth? I mean what are you looking at maybe to even enhance the growth, what are your thoughts, just kind of give us some color on what type of growth rate we should expect as we go into 2017 and the type of margins that we think are achievable in that division?

You asked a couple of questions here.

I mean a lot of our time now spent looking at digital businesses that complement what we've been able to do with Pulpo and the infrastructure that we built around Pulpo. We've got a strong national team that are selling Pulpo, we've got strong local team that continues to develop and could better all the time. But, digital is right in the front of everything we're doing right now in terms of how we see the future. We'd like to see digital reach 10% of our total revenue this year. We think that's achievable and we're certainly on pace to do that. But next year, we want to get to 20% which would be a combination of organic growth and acquisitions.

So, like I said, we're spending more and more time on our digital business and the kind of growth that you saw -- that we saw in the fourth quarter and in the first quarter, now that we're seeing in Q2 gives us a lot of encouragement that we are doing the right things and that we are bringing together the right people to help us grow this business.

(Operator Instructions)

Tracy Young, Evercore ISI.

I have three questions. In terms, just following up on the discussion about digital, the business is breakeven this quarter -- do you expect it to be breakeven to positive for the rest of the year?

We expect it to produce some important cash flow for us. We think that 20% of margin is achievable. And we would like to see -- we expect to see that happen. We had positive cash flow growth in 2015. In fact, we surpassed our budget and again, like I said, first quarter is always the ightest quarter of the year. But then from there, you start to grow and see more cash flow and we're seeing -- certainly projecting cash flow for Q2, as well as the rest of the year.

That's right. First quarter, we anticipate to be the low watermark, Tracy. 2015, we did $2.1 million in cash flow out of the digital division. And then, going out from Q2 onwards, we expect to Walter's point about the 20% plus margin, we expect that to come to fruition.

The corporate overhead number was a little bit higher than I expected, is there anything in there that we should know of?

A lot of that is just expenses that we've allocated towards the FCC auction. We've got dedicated staff and legal associated with that, that's in part and we are also (inaudible) that hit us in the first quarter as well.

And then, just lastly, your pacings were really sounded like they were down particularly, is there anything going on there?

I think for Q2, really what's happening is, you've got two markets. You've got Los Angeles and you've got Phoenix that have gotten very soft on a slow-going national, still doing well. But local, and those are two big markets for us. Local has become a soft spot and we're trying to cycle through those. If you take those two markets out, it would be convenient, but just for the sake of argument, you've got radio pacing in excess of 10%. So we're working on to local situation in those two markets, and hopefully, better news in the next quarter.

Gordon Hodge, Tracker Research.

Just had a couple. I was curious on the TV pacings, I think Univision earlier today mentioned the Copa America event is generating some excitement among advertisers. I'm just wondering if your pacings reflect similar excitement or if you're seeing -- if you're expecting that to come later, and then, I had a couple of questions on retrans and so forth, but start with that one.

We're excited as well about Copa Centenario. It's a terrific advantage over Latin American teams, maybe playing here in the United States, competing for the trophy. Right now, we're, I should say that, we're pacing quite well for the Copa, the pace is certainly above last Copa, well above it and we believe we're well on our way to achieving our budget for the Copa Centenario.

And just to refresh my memory, there was a Copa event last year also or?

It was Gold Cup I think. Coppa d' Oro last year, which I think did about $1.5 million, nothing [worth sharing], but that was Coppa d' Oro.

But you're saying you're doing -- you're pacing ahead of that on an apples-to-apples.

We are pacing ahead of that and again we're pacing to both television and radio because we're broadcasting some of the games on radio where the majority of that revenues going to be on television, about 75% of that will be -- of our total actual numbers for Copa Centenario will be on television and 25% on radio. But right now, we're well within the range to make our budget and we are pleased with the way we continue to build for this important soccer event.

We know it's going well for us as far as the pace, because auto was the biggest advertiser when it comes to the Copas and our automotive category for TV is well beyond -- the pace is well beyond 20% to the positive. So that's a good indication that Copa is having positive impact.

And then last question, I want to make sure I heard it correctly, I think you mentioned, Chris, that retrans was $7.4 million.

That's right.

That's okay and in that, that's a pure number rather than obviously last year there were some one-time item, but that's a number that we could look at as an indicative sort of level for this year.

Yes. If you're modeling out, we don't guide, but that $7.4 million is -- it was up 16% only because last year it was depressed because of a couple of one-off situations.

And this concludes our question-and-answer session. I would now like to turn the call back over to Walter for any closing remarks.

Thank you, Kerry. This concludes our first quarter 2016 earnings conference call. We look forward to reporting to all of you our second quarter earnings results on our August call. Thank you.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Have a great day.