TelevisaUnivision Q3 Revenue Up Despite Ad Challenges TelevisaUnivision: Q3 Results Show Revenue Growth

TelevisaUnivision, the leading Spanish-language media and content company, recently unveiled its financial performance for the third quarter of 2024. While the broader media landscape continues to grapple with shifts in advertising, the company showcased a nuanced picture, demonstrating resilience and strategic growth in key areas. Far from a universal “profit dip” and “advertising shortfall” across all segments, TelevisaUnivision reported an increase in both total revenue and advertising revenue, largely propelled by its burgeoning streaming service, ViX, and robust political ad spending in the U.S. market.

Navigating the Evolving Advertising Landscape

In the third quarter of 2024, TelevisaUnivision’s consolidated advertising revenue experienced a 3% increase, reaching $799 million. This growth defied a general downturn in linear advertising that many traditional media companies have faced.

• U.S. Advertising Performance: Advertising revenue in the United States was particularly strong, growing by 5% to $483 million. This surge was primarily attributed to significant political ad expenditures, especially across Univision’s local broadcast stations, national network, and the U.S. version of ViX. The U.S. market alone contributed over 60% of TelevisaUnivision’s total advertising revenue during this period.
• Mexico’s Contribution: Mexico also played a vital role, with advertising revenue increasing by 10% year-over-year, contributing $316.1 million to the total.

While the overall advertising figures present a positive outlook, the company’s strategy acknowledges the ongoing challenges within the linear television segment. The profitability achieved by its direct-to-consumer (DTC) streaming business has been instrumental in offsetting declines experienced in linear operations, signaling a successful pivot in response to evolving viewer habits.

Streaming Success and Subscription Resilience

A significant highlight of TelevisaUnivision’s Q3 2024 results was the achievement of profitability by its direct-to-consumer streaming business, ViX, after just two years on the market. This milestone positions ViX as a rapidly growing and financially viable component of the company’s portfolio.

• ViX’s Impact: ViX, the world’s largest Spanish-language streaming platform, has been a key driver for the company’s subscription and licensing revenue. Consolidated subscription and licensing revenue grew by 1% to $478 million. In the U.S., this revenue stream saw a robust 6% increase, primarily fueled by ViX’s strong subscriber growth.
• Subscriber Base: By the end of 2023, ViX had already amassed over 7 million premium subscribers, with monthly active users on its free tier also continuing to expand. The platform’s strong soccer lineup in Q3 2024 further contributed to a 30% increase in average revenue per user (ARPU), alongside continued user base expansion.

Despite a 4% dip in subscription and licensing revenue in Mexico, partially due to strategic decisions regarding sports content sublicensing, the overall growth in the U.S. underscored ViX’s increasing importance to TelevisaUnivision’s financial health.

Overall Financial Performance and Strategic Outlook

For the third quarter of 2024, TelevisaUnivision reported total revenues of $1.3 billion, representing a 2% increase compared to the previous year. Adjusted EBITDA also saw a positive trajectory, growing by 4%.

Daniel Alegre, CEO of TelevisaUnivision, emphasized the company’s disciplined execution of its reimagined content strategy and the ongoing momentum of the ViX streaming service. He highlighted a focus on integrating legacy companies into a unified global entity, aiming to evolve into a content-first, platform-agnostic organization. This strategic direction is evident in efforts to streamline operations, including the repayment of $150 million in debt using net proceeds from the sale of a non-core tower portfolio.

Conclusion

TelevisaUnivision’s third-quarter 2024 results demonstrate a company effectively navigating a dynamic media environment. While traditional linear advertising faces headwinds, robust growth in advertising revenue (particularly in the U.S. driven by political spending), coupled with the significant achievement of ViX’s profitability and strong subscription performance, paints a picture of strategic success. The company’s ongoing efforts to streamline operations and unify its global structure underscore a clear vision for sustained growth, leveraging its unique position in the Spanish-language market to connect with audiences across diverse platforms.