Univision Reports 'Complete Turnaround'

Spanish-language media giant Univision Communications, which late last year sold a majority stake to an investor group led by former Viacom CFO Wade Davis and recently agreed to a merger with Mexican TV giant Televisa, reported a big second-quarter advertising revenue improvement.

According to The Hollywood Reporter, the company said Thursday that its quarterly profit amounted to $36.6 million, compared with a year-ago loss of $27.3 million. Adjusted operating income before depreciation and amortization (OIBDA), another profitability metric, in the second quarter rose from $242.8 million to $268.8 million. Revenue rose 32 percent to $700.2 million.

“The company has completely turned round,” Davis told analysts during an afternoon call, which includes launching a streaming service and Spanish-language content primetime ratings growth. Univision also posted advertising sales growth during its latest financial quarter.

Quarterly ad revenue jumped 72 percent from the coronavirus pandemic-hit year-ago period to $407.2 million and “surpassed the second quarter of 2019,” when it had recorded $405.1 million, the company said.

Wade Davis

Core ad revenue, which is adjusted for political and advocacy ads, rose 70 percent. Media networks unit ad revenue increased 66 percent, or 63 percent when looking at core results. “The increase in media networks core advertising revenue was due to higher ad revenue driven by new brand activations, strong scatter volume and pricing, growth in previously low volume accounts, two major soccer tournaments, and improvements in the auto, retail and beverage sectors, which are recovering from the negative impacts of COVID-19,” the company said.

Revenue for Univision's Radio segment for the second quarter 2021 increased 109% to $59.9 million, compared to $28.6 million for the same prior period. Advertising revenue for the Radio segment for the second quarter 2021 increased 121% to $58.0 million, compared to $26.3 million the same prior period due to the return of advertisers that did not advertise in the second quarter of 2020 due to COVID-19, the return of live events, advocacy revenue and improvements in the auto, services and restaurant categories. Political and advocacy revenue was $7.7 million compared to $4.4 million in the prior period due to COVID-19 advocacy and off cycle local political campaigns.

Televisa and Univision are set to combine into a new company to be called Televisa-Univision, the two announced in mid-April, with Univision set to pay about $4.8 billion for Televisa’s content assets. Davis will hold the same title at the combined company, with Televisa co-CEO Alfonso de Angoitia serving as executive chairman of the board. Televisa will be the largest minority shareholder with a 45 percent stake.

The deal would create the largest Spanish-language media company in the world with bases in the two biggest Spanish-speaking markets: Mexico and the United States. Televisa is a production powerhouse, making some 86,000 hours of content in 2020. Both companies also hold big sports rights packages.

The deal is expected to close later this year, pending regulatory approval in both the U.S. and Mexico and Televisa shareholder approval. The boards of the two companies have already signed off on the transaction.