Univision Predicts $350M In Retrans Revenue
CEO Uva Sees Windfall Over Next Five Years
by Laura Martinez , 8/26/2009 12:53:40 PM EDT
The 140 multiyear retransmission-consent agreements Univision Communications has reached with U.S. cable and satellite operators will bring in as much as $175 million in additional subscriber fees in 2009 and more than $350 million in the next three to five years.
"We feel good about our positioning as the stabilization in the industry continues and we're greatly bolstered by our completion of [these] multiyear retransmission-consent agreements," CEO Joe Uva said during Univision's second-quarter earnings call earlier this month.
Overall, the company expects that within three to five years, it would rake in at least $350 million from retransmission consent. Deals with cable and satellite providers average four to five years in length, Univision said.
In other revenue highlights, Univision said it saw its net loss improve to $30 million in the quarter, down from $101 million in the year-ago period. Still, the company experienced a decline in net revenue of 4% in the second quarter compared to 2008, mostly "reflecting current economic conditions and a downturn in the advertising market."
Net revenue was $519.5 million in the second quarter, a 4% decline from the same quarter last year. Television revenue was $414.4 million, a small gain from last year's $414.2 million in the second quarter.
The company also reported $95.1 million in radio revenue, down from $117 million last year, and $10 million in interactive media.