Spanish-language media giant TelevisaUnivision said it posted a loss in the second quarter despite a swell of revenue from its rights to air the World Cup in Mexico, a sign of the challenges the company, formed from the combination of Univision in the U.S. and Grupo Televisa in Mexico, continues to face.
The company posted a loss of more than $10 million on revenue of nearly $1.33 billion. Revenue for the period soared 10%, compared with $1.21 billion in the year-earlier period. TelevisaUnivision attributed much of the increase to advertising and licensing fees associated with its Mexican sports rights.
Indeed, advertising from operations in Mexico rose 19%, driven in large part by commercials tied to telecasts of FIFA World Cup, compared with lackluster results in the U.S,. where advertising revenue slumped 22%. Overall ad revenue fell 9% during the period. TelevisaUnivision in April replaced its ad-sales chief, just days before holding its annual “upfront” presentation.
Subscription and licensing revenue rose 40% during the second quarter, to $621 million. Approximately $90 million in revenue came from sublicensing the company’s FIFA World Cup rights to media properties in other Spanish-speaking Latin American countries.
