TelevisaUnivision announced financial results for the fourth quarter ended December 31, 2023. “In TelevisaUnivision’s second year, we demonstrated that our strategy, our assets, and our execution against a differentiated market opportunity can yield superior operational and financial results. We outperformed both the U.S. and Mexican advertising markets. Our DTC business finished its first full year of operation with over $700 million in revenue. Our strategy to build complementary linear and streaming platforms is resonating with audiences and our distribution partners as evidenced by our strategic early renewal with Charter, which will include a new ad-supported premium tier of ViX,” said Wade Davis, Chief Executive Officer of TelevisaUnivision.
“We are the Spanish language media leader with roughly 60% share of linear viewership in the U.S. and Mexico and the largest dedicated Spanish language streaming service in the world. The size and power of our markets continue to build and provide us with important tailwinds. The U.S. is already the most valuable Spanish-speaking market in the world by GDP, and this year, Mexico surpassed Spain as the second largest market, with these two markets alone representing $4.7tn of GDP. This is the backdrop for an even stronger 2024 in which we are poised to capture a massive U.S. political opportunity and have sustained DTC profitability on the horizon,” Davis added.
Consolidated total revenue grew 5% for the full year to $4.9 billion. Excluding the impact of World Cup subsidizing revenue and U.S. midterm political spending in 2022, it grew 9%. Adjusting only for the impact of foreign exchange, revenue was flat. Total advertising revenue increased 6%. In the U.S., advertising revenue declined 1%; excluding political and advocacy and the impact of divested radio stations, it grew 5%. In Mexico, advertising revenue increased 18%.
For the full year, subscription and licensing revenue increased by 2%. Excluding revenue from sublicensing the World Cup in 2022, subscription and licensing revenue increased 12% in total, comprising an 8% increase in the U.S. and a 23% increase in Mexico. ViX’s premium tier drove growth in both geographies. For the fourth quarter, total subscription and licensing revenue decreased 21%; excluding the World Cup sublicensing revenue, it grew 8%.
Adjusted OIBDA decreased by 4% during the year, reflecting continued investments in ViX. Operating expenses grew 10% to $3.3 billion, driven by increased investments in new original premium content, sports rights, marketing, and technology. For the fourth quarter, adjusted OIBDA decreased 7%, reflecting the absence of World Cup sub licensing and U.S. Midterm political revenue from 2022, while operating expenses decreased 6%. The company also recorded a $1.0 billion non-cash impairment loss, primarily on its goodwill, as well as on its FCC licenses. This was driven by the impact of general market conditions, including comparable market valuations and the rising interest rate environment.
Cash flows provided by operating activities for the twelve months ending December 31, 2023, were $113 million, compared to $318 million in the prior year. Investing activities for the twelve months ended December 31, 2023, included capital expenditures of $168 million compared to $134 million in the prior year. The company ended the year with $221 million in cash on its balance sheet. The company refinanced $1.5 billion of debt during 2023 and an additional $341 million in January 2024. The company’s nearest maturity is now March 2026. The leverage ratio, or net debt to OIBDA, ended the year at 6.0x.