Spanish-language media giant TelevisaUnivision reported a 6 percent U.S. revenue gain $852.4 million for the third quarter of 2024 as a 5 percent U.S. advertising revenue gain was driven by what it described as a third-quarter company record in political ad revenue.
The company said that its streaming business, which had ended 2023 with more than 7 million subscribers, “achieved profitability after just two full years in the marketplace” after previously saying it would turn profitable in the back half of 2024.
It didn’t immediately disclose full details but said that third-quarter subscription and licensing revenue increased 1 percent to $477.5 million, including 6 percent growth in the U.S. and a decline of 12 percent in Mexico. “In local currency, it declined 4 percent, reflecting a decline in content licensing and linear platform subscribers, partially offset by growth in ViX’s premium tier,” TelevisaUnivison said.
“I am honored to be able to lead this company into its next chapter as we build on the foundations that have been solidified,” said Daniel Alegre, the former president and COO of Activision Blizzard and CEO of Yuga Labs who was recently named the new CEO of TelevisaUnivision and took on the role as of Sept. 19. “We are at a critical juncture in our evolution, and we will be laser-focused on integrating our legacy companies into a unified global entity. Our goal is to evolve into a content-first, platform-agnostic organization that connects with audiences wherever they engage.”
Concluded Alegre: “Additionally, we will leverage our unique insights into the Hispanic consumer to drive growth and innovation. Together, we are poised to redefine our future and achieve new heights.” Wade Davis has shifted from the CEO role to that of vice chairman of the board.
TelevisaUnivision’s total revenue in the third quarter grew 2 percent, or 6 percent when excluding foreign-exchange impacts, to $1.30 billion, with the U.S. growth outweighing a 5 percent drop in Mexico. Operating expenses climbed 1 percent to $877.5 million, or 5 percent when excluding foreign exchange impacts, driven by continued investments in streaming service ViX, the expansion of the firm’s third-party advertising sales business in Mexico, and higher sports-related costs.
That led TelevisaUnivision’s quarterly adjusted operating income before depreciation and amortization (OIBDA), a key profitability metric, to rise 4 percent to $427.1 million.
Advertising revenue increased 3 percent in the third quarter to $799.2 million as the U.S. gain to $483.1 million, “driven by growth in direct-to-consumer and political advertising, outweighed a 1 percent decline in Mexico. “Excluding the impact of foreign exchange rates, Mexico advertising revenue grew 10 percent, reflecting the acquisition of third-party ad inventory and popular sports content, including Copa America and the Olympics,” the company said.
TelevisaUnivision management has repeatedly touted the key role that the company’s media assets will play in the run-up to the 2024 U.S. elections and in its outcome. The company’s first earnings call under the leadership of Alegre will take place later on Tuesday morning.