While not a public company, Univision Communications Inc. (UCI) has been sharing its quarterly earnings with the public as part of a failed attempt at an initial public offering.
How does the largest media company serving Hispanics and millennial consumers look?
Total revenue is up, but Univision Radio is struggling, as Q1 revenue fell by 5.8%, to $55.2 million.
Excluding political dollars, radio division Q1 revenue dipped by 4.6%, to $53.8 million.
Univision’s Media Networks, which include its broadcast TV stations, its two broadcast TV networks and the Galavisión pay-TV network, continue to be the revenue driver for the Doral, Fla.-based company.
Total media networks revenue climbed 5.9%, to $637.4 million.
But, ad revenue was off 8.5%, minus political, to $335.5 million in the division.
Overall, total revenue climbed 4.9%, to $692.6 million. On a pro forma basis, assuming all 2016 acquisitions occurred on Jan. 1, 2016, after excluding for comparability political/advocacy advertising and content licensing revenue in both periods, revenue inched upward by 0.8%, to $681.1 million.
Q1 Net income fell to $58.1 million, from $66.7 million in the same period in 2016.
Net income attributable to Univision Communications Inc. for 2017 included the after-tax impact of a loss on the extinguishment of debt of $9.5 million, which did not occur in 2016.
As part of Univision’s efforts to strengthen its balance sheet, the company during the quarter upsized its bank revolver capacity from $550 million to $850 million and extended the revolver’s maturity by four years until 2022, at lower rates.
Additionally, UCI amended and extended its credit facility to refinance its $4.5 billion term loans that results in a 25 basis point interest rate reduction and extended the maturity by four years until 2024.
“We started the year with revenue growth, driven by increases in the subscription fees we receive for the distribution of our content,” said Randy Falco, the company’s President/CEO. “We also strengthened our balance sheet by amending the terms and extending the maturities of our debt.”