Univision Reports Weak Q2 Due To Soft Ad Demand

In another mixed signal for the advertising marketplace - especially TV's - Spanish-language TV giant Univision Communications Thursday said its profits fell nearly 60 percent during the second quarter due largely to softening demand from advertisers. While the overall TV ad marketplace has begun to slacken, Univision's results are something of a surprise, because it was expected to have sustained growth from new advertisers buying Hispanic TV, and from established Hispanic advertisers boosting budgets to match the growth in the U.S. Hispanic population.

While Univision's revenues did grow modestly, rising to $508.5 million from $495.3 million in the second quarter of 2004, the growth in sales was deemed lackluster by analysts, who described it as a disappointing quarter.

In its financial guidance, Univision projected sales would pick up in the fourth quarter and into 2006 due to its performance in the 2005-06 upfront advertising marketplace. In fact, the overall 2005-06 upfront appears to be picking up steam, for English-language networks, as well (MDN Aug. 4).

Univision executives projected ad sales would be up in the mid-20 percent range during the 2005-06 season, and that they signed 20 new advertisers for next year.

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