Spanish-language media big Univision, which earlier this yr agreed to promote a majority stake to an funding group led by former Viacom CFO Wade Davis, reported first-quarter internet revenue of $11.7 million in comparison with $36.9 million for a similar interval ending March 31 final yr.
In a convention name with buyers on Friday, CEO Vince Sadusky identified that firm income rose 8% to $660.four million from $611.9 million regardless of the challenges posed by the COVID-19 pandemic.
“Previous to the disaster, we achieved continued rankings momentum within the vital February sweeps interval, the place we not solely expanded our share lead over rivals however with an 18% portfolio rankings development we additionally ranked because the quickest rising portfolio of networks within the nation, no matter language,” stated Sadusky. “This momentum has continued by means of the disaster pushed by our sturdy information and leisure content material.”
Sadusky stated that Univision continued to work in direction of a clean transition to the brand new majority stakeholders, Searchlight Capital Companions and ForgeLight LLC, and that he anticipated the deal to shut “in some unspecified time in the future this yr.”
Since April, Univision has begun to provoke cost-cutting measures amounting to $125 million, which incorporates company-wide layoffs and furloughs – presumably longer for individuals working within the sports activities division – in addition to govt pay cuts and a pause in 401Okay matching contributions.
With the suspension of stay Sports activities occasions and decrease demand from advertisers, Univision expects losses to mount within the second quarter. The now cancelled Gold Cup soccer tourney and different recurring soccer occasions made up roughly 20% of Univision’s whole media community advert revenues, stated CFO Peter H. Lori on the earnings convention name.
On a constructive notice, working bills associated to programming decreased $25.2 million, or 17%, to $124.three million from $149.5 million for a similar prior interval,” per Univision’s 1st Q financials report.
The dip was pushed by a drop in sports activities programming prices of $14.9 million because of the impression of COVID-19 “which led to suspension of sporting occasions, resembling soccer matches, and different stay occasions for which the corporate has broadcast,” Univision stated.
Addressing considerations about any programming points going ahead, Sadusky identified that Univision has a yr’s price of authentic programming from its essential supplier, Mexico’s Televisa, and third-party acquisitions “within the can.”