As a longtime admirer of the dynamic world of media and entertainment, I can’t help but be genuinely thrilled about the recent appointment of Daniel Alegre as the CEO of TelevisaUnivision. With his impressive background leading tech giants like Activision Blizzard and Yuga Labs, it seems that this Spanish-language media titan is poised to conquer new frontiers under his visionary leadership.
In simpler terms, during the third quarter of 2024, TelevisaUnivision, a significant Spanish-language media corporation, experienced an increase of 6% in its U.S. earnings, totaling $852.4 million. This growth was primarily fueled by a 5% rise in U.S. advertising revenue, which the company attributed to a record high in political ad revenue during that quarter.
As a dedicated fan, I’m thrilled to share that, after only two short years in the market, our streaming business has managed to reach profitability! This is a significant milestone we announced, having surpassed 7 million subscribers at the end of 2023. Initially, we had anticipated becoming profitable towards the latter part of 2024, but it seems we’ve outpaced our own expectations!
Initially, they didn’t provide all the specifics, but they did reveal that their third-quarter income from subscriptions and licenses increased by 1% to reach $477.5 million. This growth was driven by a 6% rise in the U.S., while revenue in Mexico dropped by 12%. In local currency, they reported a 4% decrease, which was due to a fall in content licensing and linear platform subscribers. However, this decline was partially offset by an increase in ViX’s premium tier. TelevisaUnivison made this statement.
Daniel Alegre, the newly appointed CEO of TelevisaUnivision, expressed his gratitude for the opportunity to guide this company through its upcoming phase. He emphasized that we are at a pivotal point in our development, and our primary objective will be to seamlessly combine our existing companies into one cohesive global entity. Aiming to transform into a content-centric, versatile organization, we strive to reach audiences across various platforms.
Alegre concluded: “Moreover, we’ll capitalize on our exclusive understanding of the Hispanic market consumer to foster growth and creativity. With this partnership, we are well-positioned to reshape our destiny and reach unprecedented peaks.” Wade Davis has transitioned from the CEO position to that of a board vice chairman.
TelevisaUnivision reported a 2% increase in overall earnings during Q3, rising to $1.30 billion when accounting for non-currency effects, with the U.S. market showing significant growth despite a 5% decline in Mexico. The company’s operational expenses increased by 1%, or 5% without foreign exchange considerations, primarily due to ongoing investments in streaming service ViX, the expansion of its third-party ad sales business in Mexico, and higher sports-related costs.
As a result, the quarterly Operating Income Before Depreciation and Amortization (OIBDA) – an important measure of profitability for TelevisaUnivision – increased by 4% to reach approximately $427.1 million.
In the third quarter, our advertising income rose by 3% to reach approximately $799.2 million, with a significant contribution coming from the U.S., which saw an increase of $483.1 million. This surge was primarily fueled by a rise in direct-to-consumer and political advertisements, offsetting a minor 1% decrease in Mexico. Notably, if we exclude the influence of currency exchange rates, advertising revenue from Mexico experienced a 10% growth. This expansion is attributed to acquiring third-party ad inventory and popular sports content such as Copa America and the Olympics, according to the company’s statement.
TelevisaUnivision’s leaders have consistently emphasized that their media resources are crucial for the events leading up to the 2024 U.S. elections and their final results. The first financial report session, led by Alegre, is scheduled for later this Tuesday morning.
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2024-10-22 14:24