Univision Third-Quarter Profit Declines, Revenue Increases
UPDATED: The Spanish-language media powerhouse, led by CEO Randy Falco, posted revenue gains for its TV, radio and digital operations.
Spanish-language media giant Univision Communications on Friday reported mixed third-quarter financials as revenue rose, but its earnings declined partly due to special items.
Third-quarter revenue for the privately-held company increased 7.6 percent to $628.9 million amid gains across the company's TV, radio and digital businesses. Management had in recent quarters signaled that radio would return to slight growth late this year.
However, Univision's earnings of $10.6 million were down from $290 million in the year-ago period when it recorded a much bigger benefit for income taxes of $239 million, compared with $5.2 million in the latest period. The latest quarter also included a $53.2 million impairment loss and higher restructuring, severance and related charges. The company's operating profit also came in lower at $154.2 million, compared with $180.6 million in the year-ago period.
Adjusted operating income before depreciation and amortization, a measure of profitability that excludes some factors that can be a drag on net earnings, rose 17.1 percent to $276.5 million though.
"Our accomplishments in the third quarter add to the strides we have made over the past two years as we have worked to build on our 50-year history of being a leader in Hispanic media to become a multimedia powerhouse regardless of language," Univision president and CEO Randy Falco said. "This evolution is a testament not only to our constant innovation and preeminent bond with the community we serve, but it also speaks to the way Hispanics have become a critically important influence on American commerce, politics and culture."
Falco added: "During the third quarter of 2012, Univision ranked as the number three network in the country among adults 18-34 - out-delivering the audiences of ABC and CBS - and was also ranked number four among adults 18-49. At the same time, Univision maintained its extraordinarily high concentration of live viewership among adults 18-49 of 91 percent."
Looking at the rest of the year and into next year, Falco said: "We believe the power of our brand, strength of our programming, partnerships with advertisers and distributors and continued innovation will position us well for the remainder of 2012 and into 2013."
On an earnings conference call, CFO Andrew Hobson said Univision will likely reach two carriage agreement renewals with pay TV operators by year-end that will include new TV Everywhere and other digital content rights and include the carriage of new networks.
Radio advertising revenue is currently trending up in the low single digit percentage range in the fourth quarter, TV stations ad revenue is trending up in the mid single digit range, excluding political ads, and network ads are "kind of flat," he also told analysts.
Hobson called in from Univision's New Jersey offices, highlighting that the phones in the company's Manhattan headquarters weren't working yet in the aftermath of Hurricane Sandy.
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