ViX surpassed 40 million monthly active users

TelevisaUnivision announced financial results for the third quarter ended September 30, 2023. “TelevisaUnivision delivered another strong quarter of double-digit growth, which propelled us to historic highs in several areas in our business, including record third-quarter revenue in the U.S.,” said Wade Davis, Chief Executive Officer of TelevisaUnivision. “On the linear screen in the U.S., we achieved our highest primetime Spanish language market share in nearly a decade, and in Mexico, our flanker channel 5 out-delivered the main channel of our largest competitor for the first time in history. As of September 30, ViX has been live in the marketplace for four full quarters and has surpassed 40 million MAUs. Importantly, our relentless focus on efficiency and financial discipline is paying dividends as we saw nearly 60% improvement in our DTC losses this quarter and remain on track to deliver a profitable DTC business in the middle of next year, which would be the fastest trajectory to profitability for any major streamer in history.”

Consolidated total revenue grew 11% to $1.3 billion, which included an approximate 600bps benefit from favorable foreign exchange rates. Advertising revenue increased 7%. In the U.S., advertising revenue declined 1%. Excluding politics and advocacy, it grew 3%. This reflects continued outperformance relative to the broader market and was driven by strength in national advertising, offset by weaker performance in local advertising. In Mexico, advertising revenue increased 21%, driven by private sector growth from both new and existing clients.

Subscription and licensing revenue increased 18%, including 11% growth in the U.S. and 39% growth in Mexico. ViX’s premium tier drove growth in both geographies, pricing growth on linear subscribers, and increased content licensing revenue driven by demand for ViX premium content. The company surpassed 40 million monthly active users on the global Spanish-language streaming service ViX and expanded its distribution to make the service available across all significant connected television devices. It also delivered its highest primetime Spanish-language market share in the U.S. in nine years, propelled by sports, novelas, and tentpoles. DTC losses improved by nearly 60%, and the total adjusted OIBDA was flat, with the company’s linear networks business continuing to fund investments in DTC fully.

Adjusted OIBDA was flat compared to the prior year. Operating expenses reflect investments in ViX, including new original premium content, sports rights, marketing, and technology, and grew 17% to $868 million. Cash flows used in operating activities for the nine months ended September 30, 2023, were $17 million, compared to $249 million of cash provided in the prior year. Investing activities for the nine months ended September 30, 2023, included capital expenditures of $134 million compared to $87 million for the previous year. The company ended the quarter with $283 million in cash on its balance sheet. During the quarter, the company refinanced $700 million of its outstanding debt through the issuance of $500
million of new Senior Secured Notes, and a $200 million add-on to its existing Term Loan A facility. The leverage ratio, or net debt to OIBDA, remained flat with the prior quarter at 5.9x.