Higher Expenses Cut Into TelevisaUnivision Q2 Operating Income
TelevisaUnivision, the Spanish-language media giant, reported that higher operating expenses related to broadcasting the Winter Olympics in Mexico impacted its cash flow in the first quarter. The company has been focusing on strengthening its financial position ever since Daniel Alegre took over as CEO in 2024, following the merger of Univision and Grupo Televisa.
Alegre has been working to streamline the company’s operations, which were previously divided by geographic regions. TelevisaUnivision owns media assets in both the United States and Mexico. In an effort to boost advertising revenue in the U.S., the company recently replaced its U.S. ad sales chief Tim Natividad with John Kozack, who has more experience in sports and traditional linear advertising.
Operating expenses increased by 11% to $752 million, driven by marketing investments and sports costs related to the Winter Olympics in Mexico. Despite these challenges, Alegre expressed confidence in the company’s performance, highlighting the expansion of ViX and the linear distribution business.
Revenue in the first quarter grew by 5% to $1.1 billion, with strong performance in Mexico. In the U.S., revenue remained flat at $708 million, while in Mexico revenue increased by 17% to $367 million. However, overall advertising revenue declined by 3% to $546 million. In the U.S., advertising revenue dropped by 12% due to softness in linear networks, while in Mexico, it increased by 13%.
Subscription and licensing revenue saw a significant uptick, rising by 15% to $505 million. In the U.S., subscription revenue grew by 12% to $385 million, and in Mexico, it surged by 28% to $120 million. This growth was attributed to subscriptions to the ViX streaming service and a new partnership with Hulu+Live TV.
TelevisaUnivision’s strategic focus on deepening customer engagement and creating long-term value has been driving its progress in the competitive media landscape. Despite challenges in the U.S. market, the company remains optimistic about its multi-platform content strategy and its ability to deliver solid performance in the future.
