Univision 4Q Loss Widens On $2.25B In Write-Downs, Charges
March 30, 2009 at 12:42 PM (PT)
UNIVISION COMMUNICATIONS INC.'s fourth-quarter net loss widened on $2.25 billion in write-downs and other charges, as the Spanish-language media company, along with the rest of the industry, has been hurt by an advertising slump, reports THE WALL STREET JOURNAL.
UNIVISION has also been struggling to make payments on nearly $10 billion of debt, because cash flow has fallen precipitously and cash on hand is declining. Much of the debt came from the company's $12.3 billion leveraged buyout to a consortium of private investors.
Chief Executive JOE UVA said the results reflected "an operating environment that was among the most difficult we have seen across most industries." He added the company continues to meet its near-term goals of having ample liquidity and managing costs.
Univision posted a net loss of $1.99 billion, compared with a year-earlier net loss of $201.5 million. The latest results included the write-downs and charges for restructuring, investment losses and a settlement with Mexico's Grupo Televisa SA (TV).
Revenue decreased 7.8% to $502.1 million. Radio revenue dropped 14%.