TelevisaUnivision Reports Decline in US Advertising Revenue
The company's quarterly U.S. ad revenue dropped by 24 percent, while total U.S. revenue fell by 14 percent.
Spanish-language media giant TelevisaUnivision has reported a decline in its U.S. advertising revenue for the third quarter of this year. The company's quarterly U.S. ad revenue dropped by 24 percent, while total U.S. revenue fell by 14 percent to $715 million.
This decrease in ad revenue can be attributed to "cyclical headwinds primarily from competitive sports programming and a prior-year comparison that included the Gold Cup," according to TelevisaUnivision's explanation. The company has highlighted the impact of rival NBCUniversal's Telemundo, which broadcast the Spanish-language U.S. rights and games for the 2026 FIFA World Cup during the same period.
The World Cup, however, appears to have had a positive effect on TelevisaUnivision's results in Mexico. In that country, quarterly advertising revenue increased by 19 percent, while total revenue rose by 51 percent to $665 million. The boost is attributed to the FIFA World Cup, which took place from June 11 to July 19.
The company also provided an update on its streaming business, stating that its direct-to-consumer (DTC) segment delivered record revenue with double-digit year-over-year growth. This performance was fueled by the success of ViX during the quarter, indicating a strong showing for TelevisaUnivision's streaming platform.
The company's quarterly results showed a mixed picture, with total revenue increasing by 9% to $1.4 billion, driven largely by a significant surge of 51% in Mexico. This growth was fueled by the World Cup, which generated substantial revenue for TelevisaUnivision.
However, the global broadcast giant also reported an operating loss of $119 million, a stark reversal from its previous operating profit of $265 million. The main reason behind this decline was a non-cash impairment loss of $372 million related to the write-down of television broadcast licenses.
The company's adjusted operating income before depreciation and amortization (OIBDA) stood at $461 million, which is slightly lower than the $467 million reported in the same period last year. Despite the drop, TelevisaUnivision remains focused on its multiplatform strategy to maximize content value across various platforms and reach a wider audience.
Total ad revenue for the quarter declined by 5% to $717 million, with a more pronounced decline of 24% in the US market. However, Mexico's performance was boosted by the World Cup, indicating a strong showing for TelevisaUnivision's streaming platform ViX.
TelevisaUnivision's quarterly revenue from subscription and licensing has seen a significant increase, rising 30 percent to $640 million. This growth is largely attributed to two main factors: the sublicensing of FIFA World Cup rights in Spanish-speaking Latin American countries for approximately $90 million, and the expansion of ViX's premium tier. These developments have contributed substantially to the company's overall revenue.
In contrast, TelevisaUnivision's U.S. subscription and licensing revenue has experienced a decline of 4 percent, reaching $372 million. This decrease is primarily due to reduced content licensing revenue, although it was partially offset by increased pricing in ViX's premium tiers. Despite this setback, the company remains optimistic about its prospects.
The World Cup has had a profound impact on TelevisaUnivision's financial performance, particularly in Mexico, where subscription and licensing revenue surged 156 percent to $268 million. This substantial increase is attributed to both content licensing and growth in ViX's premium tier, driven by the global event.
Facts based on reporting originally published by The Hollywood Reporter.
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