Shares of Entravision Communications tumbled after-hours Tuesday after the company said that Meta Platforms planned to end its authorized sales partner program.
Entravision stock was down 51%, to $1.75, following a 2.5% drop at Tuesday’s close. Shares are down about 14% since the start of the year.
The advertising company said that its partnership with Meta accounted for $586.4 million of its $1.11 billion in revenue in 2023, or about 53%.
According to Entravision, Meta informed the company Monday that it was ending the program and its relationships with partners by July 1.
Meta didn’t immediately respond to requests for comment.
Entravision said that about $23.8 million of $57.7 million in total 2023 Ebitda, or earnings before interest, tax, depreciation and amortization, came from Meta.
Santa Monica, Calif.-based Entravision is now reviewing its operating strategy and cost structure and plans to provide an update as soon as practicable.
Entravision said it is in compliance with all its debt obligations. The company had $118.9 million in cash and marketable securities as of Dec. 31.