Spanish-language media giant TelevisaUnivision reported higher U.S. revenue of $799 million in the second quarter of 2024 as a 2 percent advertising revenue gain outweighed a 1 percent drop in subscription and licensing revenue, as well as “other” revenue.
The company also reemphasized that its streaming business, which had ended 2023 with more than 7 million subscribers, would indeed turn profitable in the back half of 2024. And it predicted a “great” second half, or H2, of 2024 on that and the U.S. presidential election.
TelevisaUnivision‘s total revenue in the second quarter grew 3 percent to $1.3 billion, driven by an 8 percent gain in Mexico and a 1 percent increase in the U.S. Operating expenses rose 6 percent to $896 million, weighing on the bottom line. The increase was “driven by continued investments in ViX, investments in the expansion of our third-party advertising sales business in Mexico, and higher sports-related costs with two major soccer tournaments,” the company highlighted.
That led TelevisaUnivision’s quarterly adjusted operating income before depreciation and amortization (OIBDA), a key profitability metric, to drop 3 percent to $362 million.
Advertising revenue jumped 6 percent to $785 million. “In the U.S., advertising revenue growth accelerated to 2 percent to $462 million as growth in direct-to-consumer (DTC) more than offset some softness in linear networks,” TelevisaUnivision said. First-quarter U.S. ad revenue had grown only minimally. “In Mexico, advertising revenue increased 13 percent to $323 million, reflecting growth in the private sector, predominantly driven by linear networks.”
Discussing subscription and licensing revenue trends in the second quarter, the media firm noted a 2 percent drop to $445 million, made up of a 1 percent U.S. decline to $321 million and a 3 percent decrease in Mexico. “These declines were driven by a decline in content licensing and linear platform subscribers, partially offset by growth in ViX’s premium tier,” TelevisaUnivision explained.
The company also touted the success of two recent big soccer events, the Copa America and UEFA Euro tournaments, both of which kicked off in June and drew “record-setting viewership” across TelevisaUnivision platforms. The Copa America final recorded the highest viewership on Univision in the last decade, while the tournament overall outperformed the 2022 World Cup, it said. And the Euro championship, which mostly aired on ViX, drove audience growth, with the final becoming the most-watched Euro telecast ever in the U.S. Spanish-language market.
TelevisaUnivision didn’t provide a streaming subscriber update in the earnings report for streamer ViX, which fully launched two years ago this month. However, it said that the streamer surpassed 50 million global monthly active users (MAUs) in the second quarter, compared with more than 40 million MAUs as of the end of September.
Touting “building momentum in most areas of our business,” TelevisaUnivision CEO Wade Davis said in the earnings report: “Global ad sales momentum accelerated, driven by a strong marketplace in Mexico and success in the U.S. in attracting new advertisers to our platform. We are looking forward to the second half of the year where the benefits from DTC’s turn to profitability, the U.S. presidential election cycle, and execution across the rest of our business, should yield a great next couple of quarters.”
He also touted the key role TelevisaUnivision plays in reaching Hispanic audiences that are expected to have a key impact on the U.S. presidential election this year. An estimated 36.2 million Hispanics are eligible to vote this year, up from 32.3 million in 2020, according to the Pew Research Center. Research also suggests that the increase in Hispanic voter turnout over 2020 will easily outperform the growth among other voters and could rise by 25 percent.
Davis previously described 2024 as “a historic year for us” as his team looks to drive up political ad revenue, especially in key battleground U.S. states.