MIAMI — “Our quarterly results demonstrate that Univision’s transformation is continuing to gain momentum.”
That’s a statement made Friday by Univision Communications CEO Wade Davis, as the privately held company focused on superserving Spanish-speaking Hispanic consumers released its first quarter results.
How did the company do in Q1? Adjusted EBITDA was up slightly, while its recently launched PrendeTV over-the-top offering is off to a roaring start.
In prepared comments, Davis noted that Univision’s underlying business “is optimizing as evidenced by the strong growth in advertising revenue and increases in both Adjusted OIBDA and operating cash flow driven by improved operating leverage.”
Although overall revenue slipped to $633.7 million from $660.4 million, net income grew to $66 million from $11.7 million as adjusted EBITDA inched ahead to $252.1 million from $251.1 million in Q1 2020.
A key highlight is PrendeTV’s growth. Launched March 30, it gaining 900,000 monthly average users in its first month of operation.
With a potentially robust future ahead, thanks to its blockbuster acquisition of Televisa’s content and media assets, Davis elaborated on the “important actions to drive our strategy forward” taken in the quarter.
“Related to the Televisa transaction we successfully priced a debt financing and new Series C equity investments from Softbank, Google, Raine and ForgeLight, which will provide the financing for the merger,” he said before sharing February ratings data.
Media Networks core advertising revenue, which adjusts for political and advocacy, including the 2020 election, increased 11% to $288.8 million from $259.4 million.
The increase in Media Networks core advertising was due to higher ad revenue driven by new brand activations, growth in low volume accounts and improvements in the auto, healthcare and beverage sectors which are recovering from the negative impacts of COVID-19.
Political and advocacy revenue was $11.6 million in 2021 compared to $20.9 million in the same prior period.
MORE STRUGGLES FOR UNIVISION RADIO
As Univision’s visual media assets rebound from the pandemic, continued fiscal challenges at the Uforia-fueled radio stations the company owns were seen in Q1.
Revenue for Univision Radio decreased 15% in Q1 ’21, to $43.4 million from $51.1 million.
Radio advertising revenue decreased 14% to $42 million from $48.8 million.
Why? Declines in ad spending in the auto and retail sectors were key factors.
Interestingly, political and advocacy revenue was $5.1 million in 2021 compared to $4.9 million in the same prior period.
The continued revenue challenges put added pressure on those charged with overseeing Univision Radio, which is heavily rumored to have listed several of its stations with a leading media broker and is seeking a buyer.
