×
You will be redirected back to your article in seconds

Univision’s First Quarter Profit Dips on Softer Advertising

U.S. Spanish-language media giant Univision Communications  revealed a dip in profits during the first quarter ending March 31, 2017, as it reported a net income of $58.1 million, compared to $66.7 million over the same time frame last year. The company was impacted by a $9.5 million after-tax loss on the reduction of its debt.

In an industry call led by CEO Randy Falco who did not discuss the timing of a long-pending IPO, Univision CFO Frank Lopez-Balboa pointed out a soft ad market as one of the factors behind Univision’s 7.9 percent decline in ad revs to $395.3 million.

“The overall advertising market is weak, you’ve heard that from most people in the industry, so it’s not a specific thing to us,” said Lopez-Balboa.

Ad buys from the auto, consumer products and telecommunications categories were particularly down while Univision’s non-ad revs, including carriage fees and content licensing, grew 28.5 percent to $297.3 million.

“We continue to grow our estimated average monthly unduplicated media consumer reach, which increased by 34 percent to 108 million in the first quarter compared to the same period last year, reflecting our strategy of expanding our digital footprint,” said Falco. “We gained audience share in nearly every day part during the quarter and our flagship network was the # 1 Spanish language network for the quarter and in the February Sweeps,” he said, adding: “This momentum has continued into the May Sweeps as we continue to widen the gap between us and our competition headed into the Upfront.”

Univision’s programming expenses rose by 28.5 percent to $146.4 million in the first quarter compared to 2016 first quarter costs of $113.9 million due to its increased investments in content, encompassing entertainment, sports and news. The programming boost is aimed to complement primetime content acquired from its longtime supplier, Televisa, a majority shareholder.

More Biz

  • Alan Horn Bill Tanner

    Alan Horn to Keynote Variety Business Managers Elite Breakfast, Bill Tanner to Be Honored

    Bill Tanner will be recognized with Variety’s 2019 Business Managers Elite Award at the annual Business Managers Elite Breakfast presented by City National Bank, which takes place in Beverly Hills on Nov. 13. Co-chairman and chief creative officer of The Walt Disney Studios Alan Horn will be the keynote speaker in conversation with Variety editor-in-chief, [...]

  • Smoke haze covers the Sydney Harbour

    Australia's Seven West to Merge With Affiliate Prime Media

    Australia’s Seven West Media has agreed a deal to acquire regional broadcast group Prime Media. The move is a further step in the consolidation of Australia’s traditional media industry. The two companies announced on Friday that Seven will make the acquisition entirely through the issue of new shares to the owners of Prime. Both companies [...]

  • Ron Meyer

    Ron Meyer Files $10 Million Suit Over Forged Rothko

    NBCUniversal Vice Chairman Ron Meyer has filed a $10 million suit against two art dealers, claiming they sold him a forged Mark Rothko painting in 2001. Meyer accuses Susan Seidel and Jaime Frankfort of duping him into buying the work. According to the suit, he was told that it would be included in an official [...]

  • Former movie producer Harvey Weinstein (L)

    Harvey Weinstein Seeks to Call Expert on 'Recovered' Memories at Rape Trial

    Harvey Weinstein’s attorneys are seeking to call an expert on “recovered memories” at his trial on rape and sexual assault charges. The defense has filed a motion asking to call Deborah Davis, a psychologist and professor at the University of Nevada at Reno. Davis is a frequent defense witness. She co-authored an article in 2006 [...]

  • Tekashi 6ix9ine Docuseries Coming From Showtime

    Tekashi 6ix9ine Docuseries Coming From Showtime and Rolling Stone

    Showtime Documentary Films today announced a new limited docuseries profiling controversial rapper Tekashi 6ix9ine. Titled “SuperVillain” and inspired by the Rolling Stone feature written by Stephen Witt, the three-part series will trace how a New York City deli clerk named Daniel Hernandez became superstar rapper Tekashi 6ix9ine — who racked up 2.6 billion streams and [...]

  • Fader Label Logo

    Fader Label Signs Two New Acts, Boosts Staff

    The Fader Label, home to Clairo, Matt and Kim and others, announced two new signings today along with three new hires on its staff. Charlie Burg and Zachary Knowles have joined the label’s talent roster, while Carson Oberg has come aboard as general manager, Yasmine Panah as project manager and Josh Hymowitz as label coordinator. They [...]

More From Our Brands

Access exclusive content