TelevisaUnivision, the New York-based Spanish-language media and content company, July 26 announced a 10% increase in second quarter (ended June 30) U.S. subscription and licensing revenue to $296.7 million from $269.2 million in the previous-year period. Mexican revenue increased 10% to $100.8 million from $91.8 million.
The increase was primarily due to revenue growth from virtual MVPDs, following carriage at YouTube TV, which began in Q3 2021.
At the same time, expansion into SVOD and AVOD upped quarterly costs. Total operating expenses grew 24% to $723 million. The increase primarily reflected investments in streaming, following the launch of the ViX AVOD service on March 31, and ahead of the ViX+ SVOD service launch on July 21.
Televisa, which merged with Univision earlier this year, is aggressively expanding into the subscription video-on-demand and ad-supported VOD markets with the separate launches of ViX and ViX+.
“Double digit revenue growth in the second quarter caps off a stellar first half of 2022,” Wade Davis, CEO of TelevisaUnivision, said in a statement. “I’m thrilled to see advertisers demonstrating their commitment to support and grow with U.S. Hispanic audiences.”
Indeed, pay-TV ad revenue in the U.S. increased 10% to $447.7 million from $407.2 million during the previous year period. Ad revenue jumped 14% to $220.9 million from $193 million.
Davis contends that the the strength of legacy TV advertising will transfer to digital
“The fact that the growth of our core business can fund our investments in streaming highlights the power of our unique assets and the quality and focus of our execution,” Davis said. “With our full streaming service launched, we are poised to supercharge the already impressive growth of our core business with the massive global Spanish language streaming opportunity.”