TelevisaUnivision announced financial results for the second quarter ended June 30, 2022. The 2022 / 2023 U.S. Upfront closed with the highest volume growth in seven years and the second
consecutive year of CPM growth. The U.S. market share of Spanish language primetime expanded 40bps to 63.2%, while total television primetime viewing share rose 20bps to 7.0%. Mexico's broadcast channels grew their weekday market share by 250bps. Pro forma revenue grew 11% in the second quarter and 11% in the first half of 2022, and pro forma adjusted OIBDA declined 8% in the second quarter, and 1% in the first half of 2022, as the company’s streaming investments ramped up.
A $1.5B refinance transaction in June extended the company’s maturity profile while eliminating its highest-cost tranche of debt. The company ended the quarter with $684 million in cash on its balance sheet, up from $529 million at the end of the prior quarter. The VIX+ subscription streaming service launched on July 21, creating the world's most comprehensive Spanish language streaming service. “Double-digit revenue growth in the second quarter caps off a stellar first half of 2022. The second quarter saw a historic quarter of ad sales growth in Mexico and a U.S. Upfront that grew mid-teens to the highest volume we have had in seven years. In the U.S., I’m thrilled to see advertisers demonstrating their commitment to support and grow with U.S. Hispanic audiences,” said Wade Davis, CEO of TelevisaUnivision. “This growth allowed us to fund the launch of both ViX and ViX+ in the first half of 2022 without any material decline in EBITDA. The growth of our core business can fund our investments in streaming and highlights the power of our unique assets and the quality and focus of our execution. With our full streaming service launched, we are poised to supercharge the already impressive growth of our core business with the massive global Spanish language streaming opportunity. We are just getting started on executing our vision, and I am excited about what’s ahead for TelevisaUnivision,” he added.
TelevisaUnivision's consolidated revenue grew 11% to $1.1B. Advertising revenue increased 11%, driven by solid Upfronts in both the U.S. and Mexico, market share increases, and growth in both linear and streaming. In the U.S., advertising revenue increased by 10%. The company continued to benefit from the 2021/2022 broadcast Upfront, which produced volume and price growth among the highest in its history. The quarter also reflected a substantial increase in demand for Advanced Marketing Solutions, where revenue grew 66%. The company’s U.S. networks’ share of Spanish language primetime viewing rose 40bps to 63.2%, while its share of total television primetime viewing also rose 20bps to 7.0%.
In Mexico, advertising revenue increased by 14%. The record-setting 2022 Upfront produced strong client demand, with seven of the top 10 advertising categories growing their spending during the quarter. Additionally, the quarter reflected a 250bps increase in the Mexico broadcast channels’ weekday market share. Subscription and Licensing revenue increased 10% in total and 10% in the U.S. and Mexico. The increase was primarily due to revenue growth from virtual MVPDs, following carriage at YouTube TV, which began in Q3 2021. In addition, the company benefitted from the reorganization that took place in May 2021.
The company's total operating expenses grew 24% to $723 million. The increase primarily reflects streaming investments following the ViX AVOD service launch on March 31, and ahead of the ViX+ SVOD service launch on July 21. Adjusted OIBDA decreased 8%. Cash flows provided by operating activities were $186.7 million for the first half of 2022, compared to $209 million for the same period a year ago. Investing activities included capital expenditures of $51.8 million compared to $15.0 million for the same prior period a year ago.
The company refinanced approximately $1.5 billion of debt, leading to an extended maturity profile and a more significant portion of interest expense that is effectively fixed. The company’s leverage ratio, or net debt to EBITDA, was unchanged from the prior quarter-end at 5.5X. Cash on hand ended the quarter at $684 million, with incremental liquidity through available credit lines. On January 31, 2022, Grupo Televisa, S.A.B, and Univision Holdings II, Inc. announced the completion of the transaction between Televisa’s media content and production assets and Univision. The new company, TelevisaUnivision, Inc., creates the world’s leading Spanish-language media and content company. TelevisaUnivision will produce and deliver premium content for its platforms and others while also providing innovative solutions for advertisers and distributors globally.