TelevisaUnivision boosts profitability with ViX growth and cost optimization in Q1

TelevisaUnivision reported its first quarter 2025 results, highlighting steady operational performance despite revenue pressures linked to macroeconomic factors and cyclical events. The company posted an adjusted OIBDA increase of 5% to $345 million, reflecting improved cost management and growing profitability in its direct-to-consumer (DTC) segment, particularly through its streaming platform ViX, which continues to show double-digit growth in both free and paid tiers.

Total consolidated revenue for the quarter reached $1.02 billion, an 11% decline compared to the same period in 2024. This decrease was attributed to foreign exchange headwinds, the absence of the prior year’s Super Bowl broadcast in the U.S., and the impact of distribution renewal cycles in Mexico. U.S. revenues declined by 4%, though only 1% when excluding the Super Bowl effect, while Mexico saw a sharper 23% drop, or 9% excluding currency fluctuations.

Advertising revenue fell 13% to $563 million, but when adjusted for foreign exchange and the Super Bowl, the decline was a more modest 3%. In the U.S., DTC advertising growth partially offset linear TV softness, while in Mexico, advertising revenue grew 1% in local currency, buoyed by strong performance from sports content, including Liga MX and the Super Bowl.

Subscription and licensing revenue decreased by 7% to $438 million, though it showed a 1% increase when excluding external factors. Growth in ViX’s premium offerings in both the U.S. and Mexico helped mitigate declines in sports licensing revenues. Operating expenses were down 17% to $679 million, driven by reduced entertainment and sports costs and a normalization of DTC investments, contributing to margin expansion.

CEO Daniel Alegre emphasized the company’s focus on integration, operational efficiency, and content strategy alignment across its U.S. and Mexico operations. “We delivered strong operational execution in the first quarter, resulting in adjusted OIBDA growth and sustained momentum against our strategic priorities,” Alegre stated. He highlighted that ViX’s continued growth is enabling a more robust cross-platform strategy, while efforts to streamline operations are expected to further improve margins and strengthen the balance sheet.

TelevisaUnivision also secured key strategic wins during the quarter, including a multi-year distribution agreement with DIRECTV to expand the reach of its U.S. networks, and the acquisition of exclusive rights in Mexico for all future Olympic Games through 2032, reinforcing its leadership in sports broadcasting.

The company reported $69 million in cash flow from operating activities, up from $62 million a year earlier, and ended the quarter with $345 million in cash. The leverage ratio improved slightly to 5.8x from 5.9x at the end of 2024, reflecting a cautious but steady approach to balance sheet management.

As TelevisaUnivision continues its transformation, the focus remains on capitalizing on digital growth, optimizing traditional media operations, and expanding its leadership in Spanish-language content across platforms.