TelevisaUnivision Posts Record Third-Quarter U.S. Political Ad Revenue, Streaming Turns Profitable

Spanish-language media giant TelevisaUnivision reported a 6 percent U.S. revenue gain to $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.

Wade Davis, vice chairman of the board of TelevisaUnivision, told analysts during a late morning analyst call the first-time profitability for the streaming division during the latest financial quarter was the “last critical milestone” for the multi-year turnaround at the company.

TelevisaUnivision 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 in a statement.

Alegre, addressing his first analyst call for TelevisaUnivision, said a priority will be bringing the group’s operations in the U.S. and Mexico closer together. “The significance of the U.S. Hispanic audience has never been more evident than in the presidential election cycle, where our audience will play a decisive role in the outcome of this election in the United States,” he said after Vice President Kamala Harris and former President Donald Trump appeared in separate town halls hosted by the Spanish-language media giant.

The new CEO said the spend on political advertising this year was slow to emerge earlier this year as U.S. president Joe Biden gave way to Kamala Harris as the Democratic Party candidate, and that overall expenditures grew markedly during the third quarter. “There’s an incredible opportunity for both candidates to really lean into the Spanish language spend to a degree that really reflects the power of the Spanish speaking vote,” Alegre told analysts as the U.S. presidential contest approaches election day on Nov. 5.

He added Harris making her case to Latino voters at her town hall produced a “5 percent favorable move in perception” as Democrats look to make up ground with Hispanic voters. Results from Trump’s town hall have yet to come in.

Alegre argued the two regional U.S. and Mexican companies going forward will shift into “one global company,” with the legacy linear and streaming businesses combining for a content-first media giant. “We need to be prepared to connect with our audiences wherever they choose to engage, particularly as cord cutting structurally changes the value proposition,” he said.

Alegre also pointed to the prospect of cost savings for TelevisaUnivision as the media group launches a “thorough review” of its investments and operations with an eye to a more integrated, multi-platform company. The company will also take advantage of savings from producing content in Mexico, where possible.

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 in prepared remarks accompanying its latest financial results.