Ready to Reach Hispanic America?

Univision Announces 2012 Second Quarter Results

08/02/12 . Univision PR

NEW YORK, NY, AUGUST 2, 2012 – Univision Communications Inc., the premier media company serving Hispanic America, today announced financial results for the second quarter ended June 30, 2012.  Second quarter 2012 net revenue increased 3.8% to $613.0 million from $590.4 million in the same period in 2011, and adjusted operating income before depreciation and amortization (“OIBDA”)1 increased 0.3% to $253.7 million in the second quarter of 2012 from $253.0 million in the same period in 2011.  For the six months ended June 30, 2012, net revenue increased 6.5% to $1,141.4 million from $1,072.2 million in the same period in 2011, and OIBDA[1] increased 3.6% to $437.4 million during the six months ended June 30, 2012 from $422.0 million in the same period in 2011.

Randy Falco, President and Chief Executive Officer, said, “Our mission and strategy continue to be validated by the proliferation of Hispanic-focused media outlets in this country, but we remain far ahead of the pack.  Univision finished the 2011-2012 broadcast season with more number one nights among Adults 18-49 and Adults 18-34 than ever before, and we have continued to see our audiences demonstrate engagement at a level that few networks can match. Early results of the Upfront indicate that many marketers are following the example set by Tapestry and Starcom earlier this year and shifting larger portions of their budgets to Univision and away from both English- and Spanish-language competitors.  To new and existing clients looking to tap into the upside potential of the growing Hispanic community, we believe we are the obvious partner.”

Falco continued, “In the second quarter of 2012, we worked to bolster our position on the cutting edge of Hispanic media and augmented our digital presence with the launch of our digital network, UVideos. We continue to develop our three new networks, and are forging ahead with our groundbreaking partnership with ABC News.  When you consider these initiatives on top of our networks’ strong ratings and the retransmission consent agreements we have already reached with four of our nine major distributors, we believe Univision is on the right track to deliver strong results and continued growth in audience engagement in 2012.”

 

The following tables set forth the Company’s financial performance for the three and six months ended June 30, 2012 and 2011:

 

TELEVISION HIGHLIGHTS [3]

Univision Network

The following table sets forth the total primetime audience and ranking of the country’s leading broadcast and cable television networks for the second quarter of 2012.

 

In the second quarter of 2012, Univision ranked as the #3 network among Adults 18-34 – beating NBC and CBS – and the #5 network among Adults 18-49 and Total Viewers 2+ during broadcast primetime.  In addition, Univision continued to lead in live viewership, finishing the second quarter of 2012 with the highest concentration of live viewers – 92% among Adults 18-49 during broadcast primetime – compared to CBS (73%), NBC (67%), ABC (70%) and FOX (62%).  Univision’s ratings were bolstered by the fact that it continued to draw a younger primetime audience, with a median age of 37 during the second quarter, than all English-language broadcast networks, including ABC (53), CBS (58), NBC (51) and FOX (47).  Univision out-delivered one or more of those networks in broadcast primetime on 98% of the nights in the quarter among Adults 18-34, and on 77% of the nights in the quarter among Adults 18-49.  In addition, Univision increased its lead over NBC in the 2012 second quarter, out-delivering NBC’s audience 74% of the nights among Adults 18-34 and 53% of the nights among Adults 18-49.  As the #1 network on Friday nights for the ninth consecutive quarter among Adults 18-34 and Persons 12-34, Univision out-delivered its closest competitors by margins of 50% or more and continued its lead in this key daypart among younger viewers.

Locally, during the second quarter of 2012, Univision stations were ranked as the #1 station in primetime regardless of language among Adults 18-34 in Los Angeles, Miami, Houston, Phoenix (tie), Fresno and Bakersfield, and among Adults 18-49 in Miami, Houston, Fresno and Bakersfield.  In total day, Univision stations were ranked as the #1 station regardless of language among Adults 18-34 in Los Angeles, Miami (tie), Houston, Dallas, Phoenix, Sacramento and Fresno, and among Adults 18-49 in Los Angeles (tie), Houston, Dallas (tie), Phoenix and Fresno.  In addition, during the May 2012 sweep, Univision’s WXTV in New York and KMEX in Los Angeles had the #1 and #2 most-watched early evening local news broadcasts in the country regardless of language, respectively, among both Adults 18-34 and Adults 18-49.  KMEX also secured the #1 late local news broadcast in the country regardless of language among Adults 18-49.[5]

 

TeleFutura Network

During the second quarter of 2012, TeleFutura delivered year-over-year audience gains across all key dayparts and demographics, including increases of 31% among Adults 18-34 and 19% among Adults 18-49 during total day.   TeleFutura ranked as the #2 Spanish-language network, out-delivering Telemundo in weekday daytime and weekend daytime among Adults 18-34, Adults 18-49, Total Viewers 2+ and other key demographics.  Driven by the success of “La Usupadora,” TeleFutura delivered its highest second quarter performance ever during weekday daytime among Adults 18-34, Adults 18-49, Total Viewers 2+, Women 18-34 and Women 18-49. TeleFutura also recorded its highest second quarter ratings performance during weekday early fringe among Total Viewers 2+, Men 18-34 and Men 18-49.  TeleFutura continued to draw the youngest audience in broadcast television regardless of language, with a median audience age of 35.

Locally, during the second quarter 2012, TeleFutura ranked as the #2 Spanish-language station in primetime among Adults 18-34 in Los Angeles, Houston, Dallas, San Francisco (tie), Phoenix, Sacramento, Fresno and Philadelphia (tie) and among Adults 18-49 in Los Angeles (tie), Houston, Dallas (tie), Phoenix, Sacramento, Fresno and Philadelphia (tie).  In total day, TeleFutura claimed the #2 Spanish-language station ranking in Los Angeles, New York (tie), Houston, Chicago, Dallas, San Antonio, San Francisco, Phoenix, Sacramento, Fresno, Philadelphia and Bakersfield (tie) among Adults 18-34 and in Los Angeles, Houston, Chicago, Dallas, San Antonio (tie), San Francisco, Phoenix, Sacramento and Fresno among Adults 18-49.

Galavisión Network

During the second quarter of 2012, Galavisión maintained its long-established position as the leader in Spanish-language cable, delivering larger Adult 18-49 audiences than all other Spanish-language cable networks by significant margins across key dayparts like total day, cable primetime (M-Sun 8pm-11pm), weekday daytime, early morning and early fringe.  In total day, Galavisión delivered 62% more viewers than its nearest Spanish-language cable competitor and out-delivered its furthest Spanish-language cable competitor by a margin of 817% among Adults 18-49 in the second quarter of 2012.  In addition, during the second quarter, Galavisión continued to rank among the top 10 ad-supported cable networks regardless of language in total day among Hispanic Adults 18-34 and 18-49 and Total Viewers 2+.

 

RADIO HIGHLIGHTS

During the second quarter of 2012, Univision had the #1 ranked Spanish-language radio station among Adults 18-34 in in Los Angeles, Houston, Chicago, Dallas, San Francisco, San Jose, San Antonio, Phoenix, Dallas, San Diego and Las Vegas where Arbitron’s® Portable People Meter (“PPM”) is used.  Among Adults 18-49 and Adults 25-54, Univision had the #1 ranked Spanish-language radio station in the second quarter in Arbitron PPM markets Los Angeles, Houston, Chicago, Dallas, San Francisco, San Antonio, Phoenix, San Jose and San Diego. Univision Radio stations also ranked as the #1 or #2 Spanish-language radio stations in all 13 PPM markets among Adults 18-34, Adults 18-49 and Adults 25-54 during the quarter.

 

INTERACTIVE HIGHLIGHTS[6]

During the second quarter of 2012, Univision Interactive Media (“Univision Interactive”) generated 147 million visits to its online sites and mobile offerings combined, an increase of 7% over the second quarter of 2011.  In the same timeframe, page views for Univision Interactive’s online sites and mobile offerings combined grew 7% to a total of 1.18 billion, and online and mobile ad impressions increased 12% to 3.4 billion.  During the second quarter, Univision Interactive offered exclusive videos and content for Univision franchises like “Nuestra Belleza Latina” on dedicated websites and the Univision App.  In addition, Mexican National Team and Liga MX matches continued to draw significant live streaming audiences on UnivisionDeportes.com during the second quarter; Mexican pop superstar Paulina Rubio was featured in a highly-trafficked exclusive music session at UnivisionInStudio.com; and the Noticias Univision App was expanded to iPads and added a Tú Camera feature allowing users to upload their own news stories.

 

CONFERENCE CALL

Univision will conduct a conference call to discuss its second quarter financial results at 11:00 a.m. ET/8:00 a.m. PT on Thursday, August 2, 2012.  To participate in the conference call, please dial (888) 299-7212 (within U.S.) or (719) 325-2104 (outside U.S.) fifteen minutes prior to the start of the call and provide the following pass code: 4261958.  A playback of the conference call will be available beginning at 2:00 p.m. ET, Thursday, August 2, 2012, through Thursday, August 9, 2012.  To access the playback, please dial (888) 203-1112 (within U.S.) or (719) 457-0820 (outside U.S.) and enter reservation number 4261958.

About Univision Communications Inc.

Univision Communications Inc. (UCI) is the leading media company serving Hispanic America. Its assets include Univision Network, one of the top five networks in the U.S. regardless of language and the most-watched Spanish-language broadcast television network in the country reaching 96% of U.S. Hispanic households; TeleFutura Network, a general-interest Spanish-language broadcast television network reaching 88% of U.S. Hispanic households; Univision Cable Networks, including Galavisión, the country’s leading Spanish-language cable network, as well as Univision tlnovelas, a new 24-hour cable network dedicated to novelas, Univision Deportes Network, a new 24-hour cable network dedicated to sports, ForoTV, a new 24-hour Spanish-language cable network dedicated to news, and an additional  suite of six cable offerings – De Película, De Película Clásico, Bandamax, Ritmoson, Telehit and Clásico TV; Univision Studios, which produces and co-produces reality shows, dramatic series and other programming formats for the Company’s platforms; Univision Television Group, which owns and/or operates 62 television stations in major U.S. Hispanic markets and Puerto Rico; Univision Radio, the leading Hispanic radio group which owns and/or operates 69 radio stations in 16 of the top 25 U.S. Hispanic markets and Puerto Rico; Univision Interactive Media, a network of national and local online and mobile sites including Univision.com, which continues to be the #1 most-visited Spanish-language website among U.S. online Hispanics, Univision Móvil, a longstanding industry-leader with unique, relevant mobile products and services, and Univision Partner Group, a specialized advertising and publisher network. Headquartered in New York City, UCI has television network operations in Miami and television and radio stations and sales offices in major cities throughout the United States. For more information, please visit Univision.net.

Safe Harbor

 

Certain statements contained within this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases you can identify forward-looking statements by terms such as “anticipate,” “plan,” “may,” “intend,” “will,” “expect,” “believe” or the negative of these terms, and similar expressions intended to identify forward-looking statements.

These forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Also, these forward-looking statements present our estimates and assumptions only as of the date of this press release. We undertake no obligation to modify or revise any forward-looking statements to reflect events or circumstances occurring after the date that the forward looking statement was made.

Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: failure to service the Company’s debt or inability to comply with the agreements contained in the senior secured credit facilities, including financial covenants and ratios; net losses for an extended period of time; cancellation, reductions or postponements of advertising or other changes in advertising practices among the Company’s advertisers; unanticipated interruption in the Company’s broadcasting for any reason, including acts of terrorism; any impact of adverse economic conditions on the Company’s business and financial condition, including reduced advertising revenue; regional downturns in economic conditions in those areas where the Company’s stations are located; changes in the size of the U.S. Hispanic population;  the impact of federal and state immigration legislation and policies on both the U.S Hispanic population and persons emigrating from Latin America; an increase in the preference among Hispanics for English-language programming; a lack of audience acceptance of the Company’s content; varying popularity for programming, which we cannot predict at the time we may incur related costs; failure of the Company’s new or existing businesses to produce projected revenues or cash flows; insufficient payments by Grupo Televisa S.A.B. and its affiliates (“Televisa”) for certain Mexican rights to the Company’s programming pursuant to the program license agreement with Televisa; an increase in the cost of the Company’s programming; a decrease in the supply or quality of the Company’s programming; a decrease in demand for the Company’s programming; any increase in royalty payments pursuant to the program license agreement between the Company and Televisa; loss of the Company’s ability to rely on Televisa for a significant amount of its network programming; competitive pressures from other broadcasters and other entertainment and news media; the potential impact of new technologies; the impact of a new audience measurement system on ratings of the Company’s radio stations; changes in the rules and regulations of the Federal Communications Commission (“FCC”); the need for any unanticipated expenses; failure to renew existing agreements or reach new agreements with cable operators on acceptable “retransmission consent” terms; vigorous enforcement or enhancement of FCC content rules; write downs of the carrying value of assets due to impairment; inability to realize the full value of the Company’s intangible assets; possible strikes or other union job actions; adverse conditions in the capital markets; and the Company’s inability to secure financing on suitable terms or at all.

Actual results may differ materially due to these risks and uncertainties, which have been described in Univision’s historic filings with the Securities and Exchange Commission and in the offering material for its notes. The Company assumes no obligation to update forward-looking information contained in this press release.

RECONCILIATION OF OIBDA TO NET INCOME

 

The Company uses the key indicator of OIBDA to evaluate the Company’s operating performance and for planning and forecasting future business operations. OIBDA is commonly used as a measure of performance for broadcast companies and provides investors the opportunity to evaluate the Company’s performance as it is viewed by management. In addition, OIBDA is used by investors to measure a company’s ability to service its debt and meet its other cash needs. OIBDA as presented herein is determined in accordance with the definition in the Company’s senior secured credit facilities except that for the three and six months ended June 30, 2011 it does not reflect the benefit for certain income taxes or the provision of a fixed amount reflecting a tax benefit under GAAP included in calculating OIBDA under the Company’s senior secured credit facilities, as amended.

OIBDA is not, and should not be used as, an indicator of or alternative to operating income (loss) or net income as reflected in the consolidated financial statements. It is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Since the definition of OIBDA may vary among companies and industries, it should not be used as a measure of performance among companies. We are providing on a consolidated basis a reconciliation of the non-GAAP term OIBDA to net income, which is the most directly comparable GAAP financial measure.

The tables below set forth a reconciliation of OIBDA to operating income (loss) for each segment and consolidated net income, which is the most directly comparable GAAP financial measure.

[1] See pages 10-14 for a description of this non-GAAP term, a reconciliation to net income and limitations on its use.

[2] See pages 10-14 for a description of this non-GAAP term, a reconciliation to net income and limitations on its use.

[3] Univision, TeleFutura and Galavisión Networks’ audience and rankings as measured by the Nielsen’s Company’s NPM, second quarter 2012; Univision and TeleFutura Station Group audience and rankings as measured by the Nielsen Company’s NSI May 2012 sweep Live+7.

[4] By Adults 18-34

[5] Nielsen Station Index, May 2012 sweep 04/26/2012-05/23/2012.   Early evening local news is defined as newscasts with 6pm ET/PT start time; 5pm CT (includes regular newscasts only); late local news is defined as newscasts with 11/10 pm ET/PT start time; 10/9 pm CT (includes regular newscasts only).  Based on average impressions. Live+SD.

[6] Univision.com’s online and mobile traffic as measured by Media Rating Coucil Accredited U.S. & P.R. Traffic Analytics and Quattro Wireless, MIA International, July Systems, GoTV Networks, Hola Doctor, Omniture, Kargo, AdMarvel. 2Q 2011 & 2012.

[7] Includes legal, consulting and advisory fees.

[8] Effective January 1, 2012, the Company formed several wholly-owned start-up ventures which have been designated as ?unrestricted subsidiaries? for purposes of the bank credit agreement governing the Company’s senior secured credit facilities and indentures governing the Company’s senior notes. The results of these unrestricted subsidiaries are excluded from OIBDA in accordance with the definition in the bank credit agreement; provided that the adjustments reflected above include amounts related to unrestricted subsidiaries and the results of the unrestricted subsidiaries reflected above have been adjusted to exclude such amounts. The Company may redesignate these ventures as restricted subsidiaries at a later point at its option, subject to compliance with the terms of its debt agreements.

[9] Other primarily includes adjustments to operating income (loss) provided for in the bank credit agreement governing the Company’s senior secured credit facilities.

[10] Includes legal, consulting and advisory fees.

[11] Effective January 1, 2012, the Company formed several wholly-owned start-up ventures which have been designated as ?unrestricted subsidiaries? for purposes of the bank credit agreement governing the Company’s senior secured credit facilities and indentures governing the Company’s senior notes. The results of these unrestricted subsidiaries are excluded from OIBDA in accordance with the definition in the bank credit agreement; provided that the adjustments reflected above include amounts related to unrestricted subsidiaries and the results of the unrestricted subsidiaries reflected above have been adjusted to exclude such amounts. The Company may redesignate these ventures as restricted subsidiaries at a later point at its option, subject to compliance with the terms of its debt agreements.

[12] Other primarily includes adjustments to operating income (loss) provided for in the bank credit agreement governing the Company’s senior secured credit facilities.

[13] Includes legal, consulting and advisory fees.

[14] Other primarily includes adjustments to operating income (loss) provided for in the bank credit agreement governing the Company’s senior secured credit facilities.

[15] Includes legal, consulting and advisory fees.

[16] Other primarily includes adjustments to operating income (loss) provided for in the bank credit agreement governing the Company’s senior secured credit facilities.

UNIVISION COMMUNICATIONS INC.

Investor Contact: Andrew W. Hobson, Univision Communications Inc., 212-455-5263

Media Contact: Stephanie Pillersdorf/Brooke Gordon, Sard Verbinnen & Co, 212-687-8080

 

 

 

 

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