World Cup lifts TelevisaUnivision in Mexico as U.S. ads slide
TelevisaUnivision said Q2 revenue rose 10% to $1.3 billion, powered by World Cup gains in Mexico while U.S. ad revenue fell 29%.
By Georgia Hale · Staff Writer
2 min read
The World Cup gave TelevisaUnivision a sharp lift in Mexico and a rougher ride in the U.S., where rival Telemundo held the tournament rights.
TelevisaUnivision reported second-quarter revenue of $1.3 billion, up 10% from the same period a year earlier, according to the company’s earnings release. The company said the gain was driven largely by Mexico, where revenue jumped 53% as audiences tuned in for FIFA World Cup coverage.
The tournament drew 675 million total viewers across linear TV and streaming in Mexico, the company said. Advertising revenue in Mexico rose 23% to $353 million.
The U.S. business told a very different story. TelevisaUnivision, which owns the Univision broadcast network, reported U.S. advertising revenue of $323.3 million, down 29% from the prior-year quarter. The company had previously warned Wall Street analysts that U.S. results would likely be pressured by competition tied to the World Cup.
Mexico co-hosted the tournament with the United States and Canada. The Mexican national team reached the round of 16 before losing to England, 3-2.
Streaming and licensing help soften the blow
TelevisaUnivision said adjusted operating income before depreciation and amortization, known as OIBDA, slipped 3% to $387.9 million.
Subscription and licensing revenue climbed 40% to $621 million. The company said about $90 million of that increase came from sublicensing World Cup rights in other Latin American markets, along with growth in the premium tier of its Vix streaming service and higher linear distribution revenue.
In the U.S., subscription and licensing revenue rose 8% to $377 million. TelevisaUnivision credited the increase to expansion in Vix’s premium tiers, a new distribution deal with Hulu+Live TV and higher average rates.
The quarter showed how valuable the World Cup can be for a Spanish-language media company when it controls key rights in the right market, and how punishing the same event can be when a rival holds them.
TelevisaUnivision CEO Daniel Alegre said in the earnings release that the World Cup’s performance “reinforced why soccer is a cornerstone of our strategy and why we are the ‘Home of Soccer’ for Hispanics.”
Alegre added that sports, live events and premium entertainment help keep the company positioned around culturally relevant moments for its audience.
The company’s results arrived during a busy earnings stretch for media firms, with streaming, sports rights and live programming continuing to drive investor attention across the industry.
This story draws on original reporting from Deadline.