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Univision Reports Q4 Profits Missed Mark

Mar 2, 2006  •  Post A Comment

Spanish-language broadcaster Univision Communications reported a sharp slide in fourth-quarter profit compared with a year earlier, as charges related to investments, job cuts and its ongoing fight with Mexican media company Grupo Televisa weighed on results.

The Los Angeles-based company, which earlier this year announced it was exploring strategic options that included a possible sale, on Thursday reported a fourth-quarter profit of $27.4 million, compared with a year-earlier profit of $67.2 million. Revenue rose 11 percent to $513.5 million.

During its earnings conference call, the company refused to discuss matters related to a possible sale.

The 2005 profit was affected by the following charges: $30.3 million related to layoffs and the elimination of open positions; $6 million for payments made under protest to Grupo Televisa, which is locked in a battle with Univision over programming payments; and $33.6 million related to the decline in value of investments made in radio broadcaster Entravision.

For the year, Univision reported profit of $187.2 million, down from $255.9 million. Revenue rose 9 percent to $1.9 billion.