Spanish-language media giant TelevisaUnivision said higher operating expenses tied to Mexican broadcasts of the Winter Olympics cut into its cash flow in the first quarter, while efforts to generate more advertising in the U.S. met with headwinds.
The company has been working to bolster its balance sheet since Wade Davis, the former Viacom CFO who orchestrated a buyout of Univision in 2020 before merging it with Mexico’s Grupo Televisa in 2022, ceded his CEO role to Daniel Alegre, a former senior executive at Activision Blizzard. Since Alegre joined in 2024, TelevisaUnivision has worked to streamline operations that had previously been siloed by geographic region. The company owns media assets in both the United States and Mexico.
The company on Monday said it had replaced its U.S. ad sales chief Tim Natividad, who had a history in digital media, with a veteran, John Kozack, who had more experience with sports and traditional linear advertising.
Operating expenses increased 11% to $752 million, due in part top marketing investments and sports costs primarily associated with the Winter Olympics in Mexico.
“We delivered solid performance this quarter highlighted by the continued expansion of ViX and our linear distribution business, all despite a competitive U.S. sports programming backdrop,” said Daniel Alegre, CEO of TelevisaUnivision, in a statement. “Driven by disciplined financial and operational execution and the strength of our multi-platform content strategy, we made meaningful progress against our strategic priorities and we remain focused on deepening customer engagement and creating long-term value.”
TelevisaUnivision said revenue in the first quarter rose 5% to $1.1 billion, buoyed by Mexican operations. In the U.S., revenue was flat at $708 million. In Mexico, revenue grew 17% to $367 million.
The company said overall ad revenue fell 3% to $546 million. In the U.S., advertising revenue dipped 12% to $310 million, owing to “softness in linear networks. In Mexico, advertising revenue increased 13% to $236 million.
Subscription and licensing revenue increased 15% to $505 million. In the U.S., it grew 12% to $385 million. In Mexico, it grew 28% to $120 million. The company attributed growth in both sectors to subscriptions to its ViX streaming service, as well as a new partnership with Hulu+Live TV.
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