TelevisaUnivision Reports Positive Revenue Gain in Q4 2024
TelevisaUnivision, a renowned Spanish-language media giant, has reported a 2% increase in U.S. revenue, reaching $835.5 million for the fourth quarter of 2024. In addition, the company saw a 5% improvement in U.S. subscription and licensing revenue during the same period.
Streaming Success with ViX
Under the leadership of CEO Daniel Alegre, TelevisaUnivision’s streaming business, chiefly with its flagship service ViX, continues to thrive. The company announced another profit in the fourth quarter of 2024, following its profitability achievement in the third quarter. With over 7 million subscribers and $700 million in annual revenue by the end of 2023, the direct-to-consumer (DTC) business generated $1 billion in revenue and positive adjusted operating income before depreciation and amortization (OIBDA) in ViX’s second full year of operation.
Content Globalization and Workforce Restructuring
José Luis Fabila has taken the helm of spearheading content globally for TelevisaUnivision as part of an organization-wide reorganization overseen by Alegre. The company also underwent a reduction in its workforce by a mid- to high-single-digit percentage, a move unveiled late last year. TelevisaUnivision disclosed restructuring, severance, and related charges of $53.4 million for the fourth quarter, compared to $24.2 million in the year-ago period. For the full year 2024, these charges totaled $72.9 million, compared to $53.4 million in 2023.
Revenue and Performance Metrics
While revenue in the fourth quarter saw a 1% decline, it grew by 4% when excluding foreign-exchange impacts, reaching $1.3 billion. Operating expenses remained relatively flat at $892 million. TelevisaUnivision’s quarterly adjusted operating income before depreciation and amortization (OIBDA) declined by 3% to $451.9 million in the fourth quarter of 2024, or saw a 3% growth when excluding currency impacts.
Impairment Charges and Advertising Revenue
The company also disclosed a quarterly charge for the impairment of program rights amounting to $142.5 million, and an impairment loss of $900.2 million for the full year 2024. Notably, these impairment charges are non-cash charges and do not impact the company’s OIBDA, leverage, or cash position. Advertising revenue in the final quarter of 2024 fell by 1% to $851 million, with a U.S. gain to $475.6 million offsetting a 4% drop in Mexico. Excluding the impact of foreign exchange rates, Mexico’s advertising revenue grew by 10%.
Positive Outlook for TelevisaUnivision
Alegre expressed optimism regarding TelevisaUnivision’s performance, highlighting the company’s momentum throughout 2024. He emphasized the significant opportunity ahead and the company’s ability to drive connectivity and expand its global impact as a content leader. With a newly unified organizational structure leveraging the strengths of Univision in the U.S. and Televisa in Mexico, TelevisaUnivision aims to enhance its reach and influence in both markets.
In conclusion, TelevisaUnivision’s innovative approach to streaming services, global content strategy, and organizational restructuring position it well for continued success in the evolving media landscape. The company’s strong financial performance and strategic initiatives underscore its resilience and adaptability in an ever-changing industry.