Income and adjusted OIBDA (a proxy for revenue) inched up within the third quarter at TelevisaUnivision as CEO Daniel Alegre took the helm of the Spanish-language media large.
Final month, Alegre replaced Wade Davis, who led a bunch of buyers to amass Univision and merge it with the leisure arm of Mexico’s Grupo Televisa. Alegre has primarily labored at tech and digital firms, most not too long ago holding the put up of president and COO of Activision Blizzard.
Within the quarter ended September 30, the corporate mentioned income inched up 2% from the year-ago interval to succeed in $1.3 billion. Adjusted OIBDA [operating income before taxes, depreciation and amortization] went up 4% to $427 million, with the corporate crediting progress and profitability in its streaming unit. Advertising within the U.S., particularly the swell of political messages aimed toward Hispanic voters on this presidential 12 months, offered the principle income enhance. Ends in Mexico, that are damaged out individually, confirmed downturns on each the highest and backside strains attributable to international foreign money trade charges and different headwinds.
Promoting income general climbed 3% to $799 million, rising 5% within the U.S. to $483 million. Univision not too long ago hosted each U.S. presidential candidates, Kamala Harris and Donald Trump, at separate, televised city corridor occasions.
Excluding the impression of foreign money trade charges, Mexico promoting income grew 10%, reflecting the acquisition of third-party advert stock and widespread sports activities content material together with Copa America and the Olympics. Subscription and licensing income elevated 1% to $478 million.
Within the earnings launch, Alegre mentioned he’s “honored to have the ability to lead this firm into its subsequent chapter as we construct on the foundations which have been solidified.” The corporate’s essential strategic objective, he added, is “to evolve right into a content-first, platform-agnostic group that connects with audiences wherever they have interaction.”
Like different legacy media gamers, TelevisaUnivision has been hit exhausting by cord-cutting and declines in linear viewing and promoting. Debt has additionally been a mounting concern for the privately held agency, although the earnings launch famous some progress on that entrance.
Throughout the quarter, it famous, the corporate paid down $150 million in debt by using the web proceeds from the sale of a non-core broadcast tower. Earlier this month, it mentioned it wrapped up the refinancing of its 2026 maturities by including $755 million to a set of notes due in 2031. The corporate mentioned its subsequent debt compensation gained’t be till June 2027.
As of the tip of the quarter, the corporate had a ratio of web debt to adjusted OIBDA of 5.9 occasions. That leverage determine continues to be on the excessive aspect for the sector however down from 6.1 occasions on the finish of the prior quarter.
