TelevisaUnivision announced financial results for the second quarter ended June 30, 2023. Total revenue grew 11% to $1.2 billion, driven by growth across all major revenue streams in both geographies. Total advertising revenue grew 10%, led by 29% advertising growth in Mexico, including a benefit from foreign exchange rates.
Moreover, global subscription and licensing revenue grew 14%, driven primarily by ViX’s premium subscription tier. Adjusted OIBDA held flat with the company’s core linear business continuing to fund investments in ViX fully. Engagement on ViX continued to grow, with a 17% sequential growth in total streaming hours. The company expanded its market-leading soccer portfolio and secured the rights to two key Liga MX teams this quarter, now holding rights to 17 of the 18 teams in the U.S. and Mexico.
"This was a fantastic quarter for TelevisaUnivision, accelerating our revenue growth into double digits and continuing to drive our leadership position in Spanish-language streaming with ViX— all through a disciplined approach in which our core business continues to offset our investments in streaming,” said Wade Davis, Chief Executive Officer of TelevisaUnivision. “Leading our portfolio this quarter was extraordinary growth in Mexico, where we strategically programmed across linear and the ad-supported and premium subscription tiers of ViX to drive 22% revenue growth. This is a terrific example of the components of our ecosystem working together to deliver amazing financial performance.”
Consolidated total revenue grew 11% to $1.2 billion. Advertising revenue increased by 10%. In the U.S., advertising revenue increased 1%. This reflects strength in national advertising and momentum in streaming, where the company continues seeing demand from advertisers and increased pricing as it leverages its new ad formats. In Mexico, advertising revenue increased 29%, or 14%, excluding the impact of foreign exchange, driven by growth across all sectors in both linear and streaming.
Subscription and licensing revenue increased by 14%. In the U.S., growth of 10% was driven by the success of ViX’s premium tier along with pricing growth on linear subscribers, partially offset by linear subscriber declines. In Mexico, growth of 27%, or 16% excluding the impact of foreign exchange, was driven by ViX’s premium tier and linear subscribers and pricing growth.
Adjusted OIBDA held flat, despite absorbing significant investments in the company’s streaming service, ViX. Operating expenses reflect these investments in ViX, including new original premium content, sports rights, marketing, and technology, and grew 17% to $846 million. Cash flows used in operating activities were $21 million, compared to $187 million of cash provided in the prior year quarter. Investing activities for the six months ended June 30, 2023, included capital expenditures of $97 million compared to $52 million for the previous year. The company ended the quarter with company 46 million in cash on its balance sheet. The leverage ratio, or net debt to OIBDA, remained flat at 5.9X compared with the prior quarter ended March 31, 2023.