Spanish-language media big TelevisaUnivision reported just about unchanged U.S. income of $739.9 million within the first quarter of 2024, as a 4 p.c drop in “different” income was offset by subscription and licensing income, in addition to promoting income that rose minimally. It additionally touted that its streaming enterprise, which had ended 2023 with greater than 7 million subscribers, would flip worthwhile by the again half of 2024.
Progress in streaming was “offset by some softness in linear networks,” the corporate stated about its $399.4 million in U.S. advert income for the most recent interval.
In Mexico, quarterly promoting income jumped 19 p.c to $249 million, “pushed by personal sector progress from each new and present shoppers throughout linear and direct-to-consumer,” pushing the corporate’s whole advert income for the most recent interval up 7 p.c to $648 million.
Discussing subscription and licensing income tendencies within the first quarter, the media agency stated that “progress in each the U.S. and Mexico was pushed by ViX’s premium tier, whereas the linear platforms continued to expertise subscriber losses.” TelevisaUnivision is planning to launch a brand new ViX Premium with Adverts tier shortly. Administration expects that to additional assist its streaming progress.
Whereas no newest subscriber replace was offered within the earnings report, streamer VIX stays a key focus, with the corporate saying: “ViX noticed sturdy continued progress in total viewers and engagement with whole streaming hours greater than doubling versus a 12 months in the past.”
Whole firm income within the first quarter grew 7 p.c to $1.1 billion, “pushed by progress within the firm’s direct-to-consumer (DTC) enterprise globally and linear networks in Mexico.” Working bills rose 16 p.c to $820.5 million, weighing on the underside line. The corporate highlighted “continued investments in ViX” and in “the enlargement of our third-party promoting gross sales enterprise in Mexico.”
All in all, TelevisaUnivision’s quarterly adjusted working earnings earlier than depreciation and amortization (OIBDA), a key profitability metric, dropped 9 p.c to $328.5 million, or 5 p.c when excluding a foul debt reversal from a 12 months in the past.
Stated TelevisaUnivision CEO Wade Davis: “2024 began sturdy with nice income progress and continued progress throughout our most essential strategic initiatives. Our DTC enterprise is performing extraordinarily nicely and is on monitor to be worthwhile in a number of quick months.”
He significantly touted the promoting alternative this election 12 months. “Though we’re just one quarter into the 12 months, 2024 is shaping as much as be a historic 12 months for us as our viewers is prone to be the deciding issue within the upcoming U.S. elections, and we count on that to drive commensurate political advert income,” the TelevisaUnivision CEO stated.
Davis additionally emphasised his staff’s deal with debt discount. The sturdy advert 12 months “together with a worthwhile DTC enterprise within the second half of the 12 months and wonderful execution throughout the remainder of the
enterprise, will allow earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) progress and natural deleveraging – key to attaining our continued aims of strengthening our steadiness sheet,” he stated. Administration on Thursday additionally emphasised that TelevisaUnivision has refinanced $340 million of debt, “eliminating all maturities till 2026.”