In Q1 2023, the world’s largest Spanish-language multimedia company, TelevisaUnivision, reported a 6% rise in total revenue to $1.07 billion, largely due to a 12% revenue gain in Mexico. Despite the increased earnings, CEO Wade Davis announced a net loss of $3 million due to a 17% surge in total operating expenses to $710 million, attributed to investments in OTT platform ViX.
On Thursday, the company released its second-quarter results, which held much better news for the conglomerate. TelevisaUnivision reported an 11% increase in consolidated total revenue for Q2, while still keeping division-specific figures hidden. In a Thursday release, the company announced revenue of $1.2 billion in the second quarter of 2023.
Advertising revenue showed an overall growth of 10%, with a 1% increase in the US due to the strength in national advertising and momentum in streaming. In contrast, Mexico’s advertising revenue showed a significant boost of 29%.
Subscription and licensing revenue also saw a positive trend, increasing by 14%. The 10% growth in the US is attributable to the success of the ViX’s premium tier and pricing growth on linear subscribers, which has been partially offset by linear subscriber declines. Mexico witnessed a remarkable growth of 27% due to the performance of ViX.
Despite making substantial investments in its streaming service, ViX, the company managed to keep its adjusted OIBDA flat. Operating expenses, reflecting investments in ViX including new original premium content, sports rights, marketing, and technology, rose by 17% to $846 million.
Regarding cash flow and balance sheet status, TelevisaUnivision reported a cash outflow from operating activities of $21 million, in contrast to $187 million cash inflow in the same quarter last year. Capital expenditures for the first half of 2023 stood at $97 million, up from $52 million in the previous year. The company concluded the quarter with $346 million cash in hand, and the leverage ratio, or net debt to OIBDA, was stable at 5.9X, the same as the previous quarter ending March 31, 2023.
