In mid-April Univision Communications announced it would combine with Televisia in a deal valued at $4.8 billion that will create the world’s largest Spanish language media company. As it considers potential financing transactions and market opportunities, Univision has released preliminary, unaudited financial results showing first quarter ad revenue declined 4% to approximately $634 million, from roughly $660 million in the prior year period.
Ad revenue is forecast to rise 4% in first quarter but that isn’t enough to offset a 12% decline in non-ad revenue due to subscriber losses and the timing of content delivery.
"The company is releasing these preliminary results as it considers market opportunities including potential financing transactions in connection with its previously announced proposed transaction with Grupo Televisa," Univision said in a statement.
The bare bones numbers didn’t provide a peek into how its radio station division preformed during the quarter.
Univision said it has $526 million of cash on hand. Factor in $839 million available in revolving credit facilities, and the company’s total available liquidity is $1.366 billion.
Under the deal with Mexico’s Televisia announced April 14, Univision will pay $3.0 billion in cash, $1.5 billion in stock and $0.3 billion from other sources. The deal will be financed with $1 billion of new Series C preferred equity investment led by SoftBank, along with current Univision investor ForgeLight with participation from Google and The Raine Group; and $2.1 billion of debt commitments arranged by J.P. Morgan.
Univision said Q1 operating income before depreciation and amortization, known as OIBDA, was $252 million, up fractionally from $251 million in the prior year period. As of March 31, 2021, total debt, including finance leases, was $7.3 billion. Univision said it expects to record a non-cash impairment charge of $25.0 million related to the write-down of some television sports program rights “due to revised estimates of ultimate revenue for certain program assets and write-down of certain lease assets.”