Spanish-language media giant TelevisaUnivision reported a 6% ($852.4 million) increase in U.S. revenue for the third quarter of 2024, as a 5% increase in U.S. advertising revenue was driven by what it described as a third-quarter company record in political advertising revenue.
The company said its streaming business, which finished 2023 with more than 7 million subscribers, “achieved profitability after just two full years in the market” after previously saying it would become profitable in the second half of 2024.
It didn't immediately reveal all the details, but said third-quarter subscription and licensing revenue rose 1% to $477.5 million, including 6% growth in the U.S. and a 12% decline in Mexico. “In local currency, it fell 4%, 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 lead this company into its next chapter as we build on the foundation that has been solidified,” said Daniel Alegre, former president and COO of Activision Blizzard and CEO of Yuga Labs, who recently named the new CEO of TelevisaUnivision and took over the role from 19 September. “We are at a critical juncture in our evolution and will be focused on integrating our legacy companies into a unified global entity. Our goal is to evolve into a content-centric, platform-agnostic organization that connects with audiences wherever they interact.”
Alegre concluded, “Additionally, we will leverage our unique understanding of the Hispanic consumer to drive growth and innovation. Together, we are ready to redefine our future and reach new heights.” Wade Davis has moved from the role of CEO to vice chairman of the board of directors.
TelevisaUnivision's total revenue in the third quarter grew 2%, or 6% excluding foreign exchange impacts, to $1.30 billion, with U.S. growth outpacing a 5% decline in Mexico. Operating costs rose 1% to $877.5 million, or 5% excluding foreign exchange impacts, driven by continued investments in the ViX streaming service, the expansion of third parties of the company in Mexico and from the higher costs related to sport.
This led TelevisaUnivision's quarterly adjusted operating profit before depreciation and amortization (OIBDA), a key measure of profitability, to increase 4% to $427.1 million.
Advertising revenue rose 3% in the third quarter to $799.2 million, while U.S. revenue to $483.1 million, “driven by growth in direct-to-consumer and political advertising, outpaced the decline by 1% in Mexico. “Excluding the impact of exchange rates, advertising revenue in Mexico grew 10%, reflecting the acquisition of third-party advertising inventory and popular sports content, including the Copa America and the Olympics,” the company said .
TelevisaUnivision management has repeatedly highlighted the key role that the company's media resources will play in the run-up to the 2024 US elections and their outcome. The company's first earnings call under Alegre will take place later Tuesday morning.