Univision Fights to Survive
Posted on March 30, 2009
By Joe Miller |
Univision reported a 7.8% drop in ad revenue for the fourth quarter today, bringing the company’s net 4Q08 loss to $1.99 billion. The company has been mired in declining ad revenues, lawsuits, and longstanding debt obligations.
While automobile advertising at Univision fell 41%, revenues from retail advertisers were up 3%, with telecom and fast food advertising each increasing their ad spending on Univision by 8%. Univision CFO Andrew Hobson acknowleged a difficult first quarter and expects sharp declines in retail and further declines in automotive ad spending throughout the rest of the year.
The company is still tied up in litigation with the Mexican media behemoth Group Televisa, despite a $610.8 million settlement in January stemming from a lawsuit in which Group Televisa alleged that Univision underpaid programming royalties tied to advertising revenues. The two companies face a second round of litigation over which company owns the rights to distribute digital content which didn’t exist when the long term programming contract was signed in the 1990s.
Univision’s long-term debt obligations stand at more than $10 billion.
More here.
