SerpApi.Org
TelevisaUnivision reported second-quarter financials largely shaped by the FIFA World Cup, which boosted results in Mexico but hurt U.S. operations due to rival Telemundo’s control of the rights.
Total revenue increased 10% from the prior-year period to hit $1.3 billion, thanks largely to a 53% jump in Mexico, with 675 million total viewers flocking to linear and streaming coverage of the soccer tournament. Ad revenue in Mexico climbed 23% to $353 million.
In the U.S., ad revenue plunged 29% to settle at $323.3 million. The company, which operates broadcast network Univision, had previously warned Wall Street analysts that there would likely be a downturn in the U.S. for competitive reasons.
Mexico co-hosted the Cup along with the U.S. and Canada, and the Mexican national team made a memorable run to the round of 16 before being ousted by England in a 3-2 thriller.
Adjusted operating income before depreciation and amortization [OIBDA] slipped 3% to $387.9 million.
Subscription and licensing revenue increased 40% to $621 million. The company said about $90 million of that gain came from sublicensing World Cup rights in other Latin American countries, as well as the expansion of the premium tier of streaming flagship Vix and higher linear distribution revenue.
In the U.S., subscription and licensing revenue ticked up 8% to $377 million, with the company crediting growth in Vix's premium tiers, a new distribution agreement with Hulu+Live TV and higher average rates.
In the earnings release, CEO Daniel Alegre said the World Cup’s performance "reinforced why soccer is a cornerstone of our strategy and why we are the ‘Home of Soccer' for Hispanics. Sports, together with our continued investments in live events and premium entertainment, ensure that we remain the destination for culturally relevant moments that matter."
