Spanish-language media giant Televisa Univision reported a 6% increase in U.S. ad revenue to $852.4 million in the third quarter of 2024. The company said the 5% increase in U.S. ad revenue was due to the company’s record for political ad revenue in the third quarter.
The company previously said its streaming business, which closed in 2023 with more than 7 million subscribers, would become profitable in the second half of 2024, but “we have achieved profitability two full years after entering the market.” said.
Wade Davis, vice chairman of the Televisa Univision board of directors, said in a morning briefing with analysts that the streaming division’s first turnaround in the most recent financial quarter was “the last important milestone in the company’s multi-year turnaround.” “It was a milestone,” he told analysts.
TelevisaUnivision did not immediately provide details, but said third-quarter subscription and license revenue rose 1% to $477.5 million, with a 6% increase in the U.S. and a 12% decrease in Mexico. said. “In local currency, there was a 4% decline reflecting content licensing and linear platform subscriber declines, partially offset by growth in ViX’s premium tier,” Televisa Univision said.
“Yuga Labs’ CEO Daniel Alegre, former president and COO of Activision Blizzard and recently named new president, said: He is CEO of TelevisaUnivision and took over the role effective September 19, according to a statement.
In his first analyst call with Televisa Univision, Alegre said his priority was to bring the group’s operations closer together in the United States and Mexico. “The importance of America’s Hispanic audience has never been more evident than during a presidential election. Our audience will play a decisive role in the outcome of this election in the United States.” said Vice President Kamala Harris and the former president after their inauguration. Donald Trump appeared at another town hall hosted by a Spanish-language media giant.
The new CEO said spending on political ads was slow to emerge early this year, with overall spending in the third quarter after U.S. President Joe Biden ceded the seat to Democratic nominee Kamala Harris. It said there was a significant increase in the quarter. As the U.S. presidential election approaches voting day on Nov. 5, Alegre told analysts: “It’s a great opportunity for both candidates to commit to Spanish-language spending to the extent that it reflects the strength of the Spanish-speaking vote.” There’s an opportunity.”
He added that Harris’s assertions to Latino voters at City Hall resulted in a “5% positive shift in perception” as Democrats seek to regain support with Hispanic voters. . Results from Trump’s City Council meeting are not yet available.
Alegre argued that the two regional companies in the United States and Mexico will now become “one global company,” integrating traditional linear and streaming businesses to become a content-first media giant. “You need to be ready to connect with your audience wherever they are, especially as cord cutting structurally changes your value proposition,” he said.
Alegre also pointed to the prospect of cost reductions at Televisa Univision as the company begins a “thorough review” of its investments and operations to become a more integrated, multi-platform company. The company also plans to leverage savings from producing content in Mexico, where possible.
TelevisaUnivision’s third-quarter total revenue increased 2% (6% excluding foreign exchange effects) to $1.3 billion, with growth in the U.S. outweighing a 5% decline in Mexico. Operating expenses increased 1% to $877.5 million (5% excluding currency effects) due to continued investment in streaming service ViX, expansion of the company’s third-party ad sales business in Mexico, and higher sports-related expenses. ).
As a result, Televisa Univision’s quarterly adjusted operating income before depreciation and amortization (OIBDA), a key revenue metric, rose 4% to $427.1 million.
Third-quarter advertising revenue increased 3% to $799.2 million, led by the U.S. to $483.1 million. This means that “growth in direct-to-consumer advertising and political advertising outweighed Mexico’s 1% decline.” Excluding the impact of foreign exchange rates, Mexico’s advertising revenue was driven by third-party inventory and Copa America “The increase was 10%, reflecting the acquisition of popular sports content such as the Olympics and the Olympics,” the company said in preliminary comments accompanying its latest results.