TelevisaUnivision’s U.S. advertising revenue falls in the third quarter, but overall results show Mexico’s strength

TelevisaUnivision reported a 1% year-over-year decline in U.S. advertising revenue in the third quarter, further attributed to the company’s strike-resistant media operations in Mexico.

Advertising revenue was $459.4 million for the period ended Sept. 30, while the privately held company’s total revenue rose 11% to $1.28 billion from the year-ago quarter. Operating income before depreciation and amortization was flat at $412.2 million.

Excluding spending on political spots and ads, US ad spending increased 3%. TelevisaUnivision entered the third quarter with a unique story in the struggling media sector: viewership and advertising revenue increased in recent quarters while most competitors suffered declines.

Another unique selling point of the company in 2023 was its lack of vulnerability to writer’s and actor’s strikes that have plagued most media companies. Most of TelevisaUnivision’s production activities take place outside the United States, and the company also offers numerous news, sports and non-scripted offerings on its platforms.

In Mexico, advertising revenue increased 21%, the company said, driven by private sector growth in both new and existing clients.

Vix, the company’s flagship streaming service, has now reached 40 million monthly active users. In its earnings release, the company said it remains on track to turn a profit in streaming by mid-2024.

Subscription and licensing revenue increased 18%, including 11% growth in the US and 39% growth in Mexico. Both divisions benefited from Vix’s premium tier, with the company also taking credit for linear subscriber price increases and higher licensing revenue driven by demand for premium Vix content.

TelevisaUnivision was formed in 2022 from the merger of American Univision and the media division of Grupo Televisa in Mexico.