TelevisaUnivision reports “historic” Q2
July 27, 2022
TelevisaUnivision, the Spanish-language media and content company, has announced financial results for the second quarter ended June 30th 2022.
“Double digit revenue growth in the second quarter caps off a stellar first half of 2022. The second quarter saw a historic quarter of ad sales growth in Mexico and a US Upfront that grew mid-teens to the highest volume we have had in seven years. In the US, I’m thrilled to see advertisers demonstrating their commitment to support and grow with US Hispanic audiences,” said Wade Davis, CEO of TelevisaUnivision.
“This growth allowed us to fund the launch of both ViX and ViX+ in the first half of 2022 without any material decline in EBITDA. The fact that the growth of our core business can fund our investments in streaming highlights the power of our unique assets and the quality and focus of our execution. With our full streaming service launched, we are poised to supercharge the already impressive growth of our core business with the massive global Spanish language streaming opportunity. We are just getting started on executing on our vision and I am excited about what’s ahead for TelevisaUnivision,” added Davis.
Financial and operational highlights
- The 2022/2023 US Upfront closed with the highest volume growth in seven years, and the second consecutive year of CPM growth
- US market share of Spanish language primetime expanded 40bps to 63.2 per cent, while total television primetime viewing share rose 20bps to 7 per cent
- Mexico broadcast channels grew their weekday market share by 250bps
- Pro forma revenue grew 11 per cent in the second quarter and 11 per cent in the first half of 2022
- Pro forma adjusted OIBDA declined 8 per cent in the second quarter, and 1 per cent in the first half of 2022, as the company’s streaming investments ramped up
- A $1.5 billion refinance transaction in June extended the company’s maturity profile, while eliminating its highest-cost tranche of debt
- The company ended the quarter with $684 million in cash on its balance sheet, up from $529 million at the end of the prior quarter
- The VIX+ subscription streaming service launched on July 21st
Consolidated revenue grew 11 per cent to $1.1 billion. Advertising revenue increased 11 per cent driven by strong Upfronts in both the US and Mexico, market share increases, and growth in both linear and streaming.
In the US, advertising revenue increased 10 per cent. The company continued to benefit from the 2021/2022 broadcast Upfront which produced volume and price growth among the highest in its history. The quarter also reflected strong growth in demand for Advanced Marketing Solutions, where revenue grew 66 per cent. The company’s US networks’ share of Spanish language primetime viewing rose 40bps to 63.2 per cent while its share of total television primetime viewing also rose 20bps to 7 per cent.
In Mexico, advertising revenue increased 14 per cent. The record setting 2022 Upfront produced strong client demand, with seven of the top 10 advertising categories growing their spend during the quarter. Additionally, the quarter reflected a 250bps increase in the Mexico broadcast channels’ weekday market share.
Subscription and Licensing revenue increased 10 per cent in total, and 10 per cent in each of the US and Mexico. The increase was primarily due to revenue growth from virtual MVPDs, following carriage at YouTube TV which began in Q3 2021. In addition, the Company benefitted from the Reorganisation that took place in May 2021.