TelevisaUnivision announced financial results for the first quarter of 2024. Consolidated total revenue grew 7% to $1.1 billion. Favorable foreign exchange rates produced a 300bps benefit to consolidated total revenue growth. In the U.S., total revenue was flat at $740 million. In Mexico, total revenue grew 23% to $409 million. Excluding the impact of FX rates, Mexico revenue grew 13%.
Advertising revenue increased 7% to $648 million. In the U.S., advertising revenue was flat with the prior year as growth in DTC was offset by some softness in linear networks. In Mexico, advertising revenue increased 19% to $249 million driven by private sector growth from both new and existing clients across linear and DTC.
Subscription and licensing revenue increased 9% to $473 million. In the U.S. it was flat at $327 million. In Mexico, it grew 34% to $147 million. Growth in both the U.S. and Mexico was driven by ViX’s premium tier while the linear platforms continued to experience subscriber losses. Mexico also benefited from growth in content licensing driven by demand for the Company’s sports rights and ViX premium content.
Operating expenses grew 16% to $821 million, driven by continued investments in ViX, investments in the expansion of our third party advertising sales business in Mexico, and the comp of a non-recurring bad debt reversal last year. As a result, adjusted OIBDA declined 9%. Excluding the bad debt reversal from a year ago, adjusted OIBDA would have declined 5%.
“2024 started strong with great revenue growth and continued progress across our most important strategic initiatives. Our DTC business is performing extremely well and is on track to be profitable in a few short months,” said Wade Davis, CEO of TelevisaUnivision. “The U.S. and Mexico corridor, which is at the center of our massive global opportunity, continues to show remarkable strength with our Mexico business posting an exceptionally strong quarter, led by the advertising business. Although we are only one quarter into the year, 2024 is shaping up to be a historic year for us as our audience is likely to be the deciding factor in the upcoming U.S. elections and we expect that to drive commensurate political ad revenue. This, in combination with a profitable DTC business in the second half of the year and excellent execution across the rest of the business, will enable EBITDA growth and organic deleveraging – key to achieving our continued objectives of strengthening our balance sheet.”
For the three months ended March 31, 2024 cash provided by operating activities were $62 million, compared to $95 million of cash used in the prior year. Investing activities for the three months ended March 31, 2024 included capital expenditures of $40 million compared to $52 million in the prior year. The Company ended the quarter with $225 million in cash on its balance sheet. During the quarter the company refinanced all of its remaining 2025 maturities through the issuance of $240 million of new Senior Secured Notes, and a $100 million add-on to its existing Term Loan A facility. The leverage ratio, or net debt to OIBDA increased to 6.1x from 6.0x as of December 31, 2023.
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