Revenue and adjusted OIBDA (a proxy for profit) inched up in the third quarter at TelevisaUnivision as CEO Daniel Alegre took the helm of the Spanish-language media giant.
Last month, Alegre replaced Wade Davis, who led a group of investors to acquire Univision and merge it with the entertainment arm of Mexico’s Grupo Televisa. Alegre has mainly worked at tech and digital companies, most recently holding the post of president and COO of Activision Blizzard.
In the quarter ended September 30, the company said revenue inched up 2% from the year-ago period to reach $1.3 billion. Adjusted OIBDA [operating income before taxes, depreciation and amortization] went up 4% to $427 million, with the company crediting growth and profitability in its streaming unit. Advertising in the U.S., especially the swell of political messages aimed at Hispanic voters in this presidential year, provided the main revenue boost. Results in Mexico, which are broken out separately, showed downturns on both the top and bottom lines due to foreign currency exchange rates and other headwinds.
Advertising revenue overall climbed 3% to $799 million, rising 5% in the U.S. to $483 million. Univision recently hosted both U.S. presidential candidates, Kamala Harris and Donald Trump, at separate, televised town hall events.
Excluding the impact of currency exchange rates, Mexico advertising revenue grew 10%, reflecting the acquisition of third-party ad inventory and popular sports content including Copa America and the Olympics. Subscription and licensing revenue increased 1% to $478 million.
In the earnings release, Alegre said he is “honored to be able to lead this company into its next chapter as we build on the foundations that have been solidified.” The company’s main strategic goal, he added, is “to evolve into a content-first, platform-agnostic organization that connects with audiences wherever they engage.”
Like other legacy media players, TelevisaUnivision has been hit hard by cord-cutting and declines in linear viewing and advertising. Debt has also been a mounting concern for the privately held firm, though the earnings release noted some progress on that front.
During the quarter, it noted, the company paid down $150 million in debt by utilizing the net proceeds from the sale of a non-core broadcast tower. Earlier this month, it said it wrapped up the refinancing of its 2026 maturities by adding $755 million to a set of notes due in 2031. The company said its next debt repayment won’t be until June 2027.
As of the end of the quarter, the company had a ratio of net debt to adjusted OIBDA of 5.9 times. That leverage figure is still on the high side for the sector but down from 6.1 times at the end of the prior quarter.