Univision Revenue Down In First Quarter, Staffers Warn Of Trouble As Budget Cuts Loom

Q1 Down

UNIVISION COMMUNICATIONS INC. has announced revenues down 1.2% year-to-year for first quarter to $684.2 million, with core revenue also off 1.2% to $672.9 million.  Radio revenues fell 5.3% to $52.3 million (core off 8.4% to $49.3 million); the declines were blamed on "a decrease in advertising revenue," off 5.6% to $50.3 million. Net income fell from $58.1 million to $47.4 million; 2018's figure included $28.1 million in pretax restructuring/severance charges, programming write down charges of $8.6 million, a gain of $23.3 million from spectrum sales in the FCC's spectrum incentive auction, and a loss of $22.9 million from a change in the fair value of its ENTRAVISION stake. 

Meanwhile, 2017's figure included $7.8 million in pretax restructuring/severance charges and a pretax loss on extinguishment of debt of $15.1 million.  The numbers arrive in the wake of an article posted by UNIVISION's own employees on the company's GIZMODO MEDIA GROUP Special Projects Desk website ripping the company as a "f--king mess," the replacement of its CFO in MARCH, and reported cutbacks including budget cuts throughout the company and executive departures at FUSION MEDIA GROUP,

“UNIVISION delivered approximately $684 million in revenue, $47 million in net income, and $245 million in Adjusted OIBDA in the first quarter. We continued to reduce our debt and year over year interest expense,” said Pres./CEO RANDY FALCO, who will retire in DECEMBER. “Even with a leading portfolio of Spanish-language linear assets, a growing digital portfolio and a strong and time-tested relationship with our audience, we recognize that accelerating changes at UNIVISION now is as important as ever given the rapid evolution in the media sector. We remain focused on one main strategic objective: Serving the entire U.S. Hispanic audience and enhancing our brand through our service to this community.”

The article, entitled "UNIVISION Is A F--king Mess," by staffers from GIZMODO MEDIA GROUP, the network of English-language websites, many formerly part of GAWKER MEDIA, acquired by UNIVISION and placed under the FUSION MEDIA GROUP umbrella, chronicles "the story of how corporate raiding, complacency, excess, and incompetence are gutting a media company that matters to tens of millions of people," including woes across the company, from the failure of FUSION's digital strategy, the aborted Initial Public Offering, and drastic budget cuts (urged by consultants hired to find ways to cut costs) endangering the UNIVISION TV network's dominance in Spanish-language news to mismanagement and other problems at the FUSION division. 

The article details the company's financial situation and heavy debt -- comparing it to another company in which THOMAS H. LEE PARTNERS invested, iHEARTMEDIA, although noting that UNIVISION's debt is "nowhere near" iHEARTMEDIA's before its bankruptcy -- and warns of coming "pink slips in JUNE."  Read the article here.

« see more Net News