Univision Communications Inc.

Overview Key strengths Key risks TelevisaUnivision Inc. is the global market leader in providing Spanish-language content. Leverage remains elevated in the mid-6x area in 2023, primarily due to streaming investments. Subscription revenue, currently around 35% of total revenue, provides revenue stability. Weakening economic conditions in 2023 will hurt advertising revenue, which is cyclical and represents around 60% of the company's revenue. Healthy free operating cash flow from the company's linear television business provides sufficient liquidity to fund its streaming strategy. Uncertainty regarding the effect of secular shifts in linear television advertising and subscription revenue. The company launched its two-tiered streaming service in 2022, which includes both an ad-supported component (ViX) and a subscription-based component (ViX+). It fully launched its streaming

... profitable over the next year, quicker than other streaming services given its differentiated strategy. The company launched its two-tiered streaming service in 2022, which includes both an ad-supported component (ViX) and a subscription-based component (ViX+). It fully launched its streaming service in the U.S. and Mexico, with a soft launch in the rest of Spanish-speaking Latin America. While other, more established, streaming services (with the exception of Netflix) are not expected to breakeven for at least a couple of years, TelevisaUnivision expects streaming losses to peak in 2022 and,...

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